The effect of energy prices on the competitiveness of the Polish and European economies

This paper assesses the impact of energy price fluctuations in recent years on the competitiveness of Polish and European economies. Using the Leontief price model and input–output tables, we evaluate both direct and indirect effects of price shocks in gas, oil, coal, and electricity on aggregate export prices. Reactions to hypothetical 100% price shocks reveal that European economies are particularly sensitive to oil and electricity, while gas and coal exert smaller but sector-specific effects. Model responses to historical price changes between 2015–2019 and 2020–2024 indicate substantial cross-country variation in export price, with the highest increases observed in the Netherlands, Lithuania, and Greece, and moderate effects in Poland. In most countries, oil and gas price shocks dominate the overall impact, whereas coal affects exports primarily in countries with high coal dependence. The findings highlight the differential sensitivity of national economies to energy price volatility and its implications for export competitiveness.