Katarzyna Kurek (Wageningen University, UEC/ AEP) Geothermal resources and local development in Poland

Among the renewable energy resources geothermal is specific to a local production and consumption. Next to the heat and energy production, geothermal energy presents with opportunities for rural and suburban areas linking sustainable development goals with expansion of new local economy sectors. Therefore, we assume that local exploitation of geothermal resources delivers a local added value other than energy generation. Moreover, a change of a municipality socioeconomic structure is presumed while geothermal establishments are introduced. The aim of this research is to fill in the gap in the literature and establish an empirical link between the use of the geothermal renewable and measures of local development. The assumed added value of the geothermal can be analysed as direct, indirect and induced effects on a municipality of exploitation. This research attempts to provide a methodology that measures the induced impact related to the socioeconomic development. The theoretical conceptualization underpinning this study is reflected in endogenous growth theories as well as in regional economics approach. 

In the seminar, I will focus on a chapter of my dissertation that discusses two methods to measure the concept of local competitiveness: Principal Component Analysis (PCA) and Analytical Hierarchy Process (AHP). The goal of this analysis is to determine whether these two methods used in social sciences research lead to comparable model results. By non-parametric tests we show that there is a significant correlation between the PCA and AHP local competitiveness indexes. Thereafter, a developed mixed method examination of whether the methods can be used interchangeably is presented and illustrated with detailed examples of two mixed approaches. The mixed method confirms the correlation between the PCA and AHP models. However, the mixed modelling results indicate the utility of the PCA in the situation of a multicriteria local competitiveness data examination.