External Costs of Open-Cast Lignite Mining for the Agri-Food Industry (As Illustrated by the Example of the Oczkowice Mine)

Abstract

The purpose of this study is to calculate the externalitiesfor the agriculture and the agri-food industry ofplanned open-cast lignite mining on the Oczkowice reserve.The mine’s area of impact extends to 7 districts of south-westWielkopolska. The study envisages 2 options for the depressioncrater’s impact (mine dewatering) on crop productionand 2 scenarios of losses in livestock production. Losses dueto unrealized production in the agricultural and agri-food sectorswithin a 100-year time horizon (50 years of mining and50 years for hydrological recovery) are estimated to rangefrom PLN 22.4 billion to PLN 174 billion. Externals costs, definedas lost profits, are estimated to range from PLN 5.1 billionto PLN 39.5 billion. Compared to the value of lignitefrom the Oczkowice reserve, the level of external costs andproduction losses in the agricultural and agri-food sectorsmake open-cast lignite mining at that location an economicallyunviable project.

Location of Cows and Pigs in Suburban Areas of Polish Metropolitan Centers

“…In the case of cattle, these factors are nearly fully correlated. When it comes to pigs, the average purchased feeds account for about 50% of the feed used but can be nearly 100% for smaller producers [58]. However, the advantage of that variable is that it shows the actual animal density, which can also result from the limited amount of agricultural land.…”

“…The fast, uncontrolled decline in agricultural land area, as witnessed after 1990 in many countries undergoing economic transformation, gave rise to concerns about the capacity to feed these nations and the global population [43,47,[54][55][56][57]. These concerns seem reasonable in view of the expected 70%-110% increase in demand for food by 2050 (with 2005-2010 as the base period), resulting from rapid population growth, enhancement in welfare levels, and changes in diet [58][59][60][61]. Therefore, there is need for implementing a land protection policy at a global level.…”

The Influence of Opencast Lignite Mining Dehydration on Plant Production—A Methodological Study

“…This study is an attempt to fill that knowledge gap and to start a discussion on the methodology of calculating agricultural external costs associated with the existing cones of depression created around open pits. In the first papers related to this subject [33][34][35], there were many simplifications made regarding the level of yield decline, i.e., the same level of yield decline was assumed for the entire period of the impact of open casts. By using only one period for estimating the external cost of a fall in yields, there is a risk of a significant over-or underestimation of external costs.…”

“…Furthermore it was calculated by comparing the yield levels in the Wielkopolskie Voivodship before the launch of the open-cast mine, however, 30 years later, in the eastern part of the Wielkopolskie Voivodship, a multi-pit lignite open-cast mine is now operational. This makes it possible to maintain the condition of comparability of factors influencing the level of yields based on the vicinities being compared [33][34][35].…”

“…In the case of smaller open-pit mines and a shorter mining time, the indicators will be higher and will oscillate around 80-90%; in the case of larger open-pit mines with longer mining time, they may reach approx. 60% [34,94].…”