Using Energy Policies to Shape Local Competitive Advantages

Abstract

The aim of this study was to assess urban policies from the point of view of their impact on energy efficiency as a factor enhancing local competitiveness in Poland. To achieve this objective, we carried out an original study. The first step was to conduct a literature review. Next, an attempt was made to present the prevailing state of knowledge regarding the management of the competitiveness of cities and regions, as well as the functioning of energy efficiency in the economy. The development strategies of 18 selected cities serving as provincial capitals or playing other administrative roles at the regional level were also analysed. Importantly, the impact envisaged for municipal authorities to improve energy efficiency largely focuses on investments in the modernisation of public transport infrastructure and renewable energy sources. These investments certainly yield substantial cost savings, which are presented in the article. Nevertheless, it is essential to bear in mind that these are not the sole advantages of increased energy efficiency of local socio-economic systems. The investments also have the potential to enhance the perception of cities, increase the value of municipal real estate, and improve the health of urban residents by reducing emissions into the atmosphere. Still, a clearly discernible link between these arguments and a positive impact of cities’ energy savings on their competitive standing and competitive edge is absent from the analysed city development strategies.

1. Introduction

The competitive advantage of cities can arise from different combinations of characteristics, depending on the context and specifics of the location. The key to success lies in creating an attractive place to live, work, and invest. As Sgambati and Gargulio point out [1], there is a strong link between the competitiveness of cities and their capacity to adapt to evolving circumstances and global challenges associated with civilisational development. One such challenge is to improve the quality of life for urban residents in the context of sustainable development. Improving the energy efficiency of cities contributes to lower energy costs, improved thermal comfort, a healthier environment, better mobility, and increased accessibility to services. These factors have a direct impact on the quality of life of residents, creating a more welcoming and sustainable urban environment. Troy [2] uses the term “urban energy metabolism” to illustrate the rate at which cities consume energy and posits that efforts to improve energy efficiency, apart from purely economic effects, also bring significant environmental benefits.

Increasing a city’s energy efficiency can influence many dimensions of its competitiveness, spanning economic, social, environmental, and innovation and technology facets. Striving for energy efficiency is a strategic approach that can benefit the city as well as its communities and businesses. Many cities around the world are increasingly cognizant of the benefits of energy efficiency and have been incorporating relevant measures into their municipal strategies.

Consuming 75% of the world’s primary energy [3], urban areas require an uninterrupted energy supply. Thus, for cities, energy efficiency is both a long-term necessity and an opportunity. Cities are uniquely positioned to encourage and implement energy efficiency initiatives. In the coming years, in the era of adaptation to climate change, cities will face further challenges to build a low-carbon economy as per the European Green Deal or the “Fit for 55” package of measures [4], which should compel city authorities to be both reactive and proactive. Recently, it has been noticeable that a number of cities have been updating their strategies and redefining their goals and priorities to take into account the dynamically evolving circumstances, both regulatory as well as environmental (regionally, nationally, and globally).

The energy crisis, manifesting in energy shortages, rising energy prices, and instability of supply, is affecting urban energy planning [5]. As a response, cities need to develop strategies to increase energy independence, promote energy efficiency, develop renewable energy sources, and diversify supply sources.

City strategies set out the priorities for development in the years to come and identify the challenges to be met over a given period. They outline the directions that are expected to enhance the social, economic, spatial, and environmental potential of a city. What city authorities should also develop are appropriate frameworks for the implementation of energy policies, which means that they need to integrate energy efficiency into local priorities and strategies. A sustainable urban energy system therefore requires the establishment of appropriate policies and provisions in strategic documents, as well as cooperation between the private sector and regulatory institutions.

City energy efficiency implementation policies have attributed increasingly more importance to the economic rationale (in addition to improving the quality of life of the inhabitants), which stems from the aforementioned energy crisis as it escalates the cost of city operations. As Troy notes [6], if energy prices rise significantly, a city’s high energy metabolism may put energy-intensive cities at a distinct competitive disadvantage. Being prepared for such an eventuality is not only an ecological behaviour that is so important in this day and age, but also a pragmatic economic behaviour that—in the long run—brings enormous environmental benefits.

Given the above, the aim of this study was to assess the impact of urban policies on energy efficiency as a factor that contributes to enhancing local competitiveness in Poland. To achieve the objective, the following research questions were posed:

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Q1. What are the determinants of the local administration approach to formulating objectives (strategic and operational) related to energy efficiency?

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Q2. What energy efficiency actions are taken into account in the municipal authorities’ investment planning process?

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Q3. What is the rationale for local authorities to invest in energy efficiency in the broadest sense?

Answering our research inquiries is pertinent to the formulation of urban policies that focus on enhancing the competitiveness of cities through energy efficiency. A better understanding of cities’ energy policies in the face of environmental changes will not only impact existing cities but also inform strategies for establishing new ones.

2. Materials and Methods

The issue under discussion represents an important strand of research in which a variety of methods can be applied. Their diversity renders the selection of the most appropriate ones an important decision-making dilemma in the research process.

An approach incorporating elements of the systematic review methodology was employed to analyse the literature. Its application was limited to the following research stages: formulation of research questions, development of a literature search strategy and search of bibliographic databases, selection of publications for review based on predefined inclusion and exclusion criteria, extraction, analysis, and interpretation of results.

The analysis of the current state of knowledge employed full-text databases EBSCO, Scopus, and Web of Science (databases available in the electronic resource collections of 2 Polish universities: University of Lodz and Lodz University of Technology). The literature search focused primarily on publications in the field of building competitive advantage and energy efficiency, especially in the context of cities. The analysis was performed using a combination of the following queries:

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“energy efficiency”,

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“energy efficiency of cities”,

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“competitive advantage”,

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“building competitive advantage”,

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“urban policy”,

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“energy efficiency of cities” and “competitive advantage”,

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“building competitive advantage” and “urban policy”,

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“energy efficiency” and “urban policy” and “the competitive advantage of cities”.

All items published in peer-reviewed journals and monographs in Polish and English were included in the review. A selection was then made according to the year of publication. Only items in the time range of 2000–2023 were retained for further analysis.

Also excluded were the publications for which the authors did not have full access.

The development of a strategy for the publication search in bibliographic databases; performing the search; and the initial qualification of studies for review based on the year of publication, its title, and abstract all were carried out by one of the authors. The next stage in the study, involving the final qualification of publications for review based on the analysis of the contents of the publications according to the predefined inclusion and exclusion criteria, included data extraction and detailed analysis that were performed by the other three researchers.

The initial search of bibliographic databases according to the designed literature search strategy yielded a total of 12,506,420 potentially relevant publications. Once publications falling outside the 2000–2023 time range were excluded, there remained 12,372,438 publications. Elimination of publications with limited access resulted in 1,255,072 items. The analysis of the abstracts and titles of the publications further reduced the number to 305. Finally, following a detailed analysis of the publications, 101 were selected for the review.

The PRISMA diagram shows the literature search and selection strategy for the review (Figure 1).

The literature selection activities demonstrate the authors’ systematic approach to source analysis, encompassing a variety of databases and precise keywords and search terms to identify records relevant for the researchers.

Based on the literature review, an attempt was made to present the current state of knowledge regarding the management of the competitiveness of cities and regions, as well as the role of energy efficiency in the urban economy. Apart from the review of the relevant research publications, development strategies of selected cities that play the role of provincial capitals or serve other administrative functions at the regional level (e.g., seats of regional government administration offices) were also included in the analysis. As a result, 18 strategic documents of the following cities, regional hubs for growth and development, were included in the study: Białystok, Bydgoszcz, Gdańsk, Gorzów Wlkp., Katowice, Kielce, Kraków, Lublin, Łódź, Olsztyn, Opole, Poznań, Rzeszów, Szczecin, Toruń, Warsaw, Wrocław, and Zielona Góra. They are among the largest urban centres in Poland; hence, the likelihood that their local authorities have a meaningful influence on the issues relevant for the scope of the study was deemed to be the greatest.

The data obtained as a result of the review of the strategic documents were analysed using an approach applied in the evaluation of publicly funded interventions, such as EU funds. This type of evaluation is based on the programme theory, which aims to answer the question of why and how a given intervention produces certain intended and unintended effects. In other words, the focus of this approach is not on measuring effects, but on identifying the mechanism of change—determining why and how an intervention works [8]. In this approach, the researcher, when reconstructing the theory, goes back step by step from the goal (the ultimate effect) to the earliest changes set in motion (or planned to be set in motion) by the intervention. In this study, the application of this approach was expected to allow the authors to assess how municipalities influence energy efficiency of the local socio-economic ecosystems.

3. Results

3.1. Managing the Competitiveness of Cities and Regions—Processes, Factors, and Conditions

For the purpose of this article, it is assumed that today’s cities need to plan their future based on an understanding of the changes taking place in their environments. The previous level of development of a city and region is not achieved once and for all. The present day increasingly requires the construction of future urban development policies based on understanding and shaping their current and future competitive position. In order for this to happen, it is first necessary to consider what the competitiveness of cities and regions is.

Competitiveness can be considered at different levels of reference: micro (enterprise level), meso (level of industries, branches, and sectors, and also regions or cities), and macro (competitiveness of national economies) [9], or more extended levels: micro-micro, meso, macro, mega, and meta [10,11].

General definitions of competitiveness covering all levels (micro, meso, macro) given by, e.g., the Organisation for Economic Cooperation and Development or the European Commission, explain it as the ability of enterprises, industries, regions, nations, or transnational regions/geographical areas to generate relatively high revenues and high levels of employment in the long term, under conditions of international competition [12,13].

In this study, attention was focused on competitiveness at the meso level, concerning regions, including cities. Competitiveness at the meso level is most often defined as the ability to create conditions in which businesses are able to perform at their best and residents are better able to satisfy their needs compared to other regions [14]; as the ability to offer an attractive and sustainable environment for companies and residents to live and work in [15]; or as the ability to exploit individual, distinctive, and valuable resources that are difficult for competitors to imitate [16]. As regards urban competitiveness, a city is more competitive if it generates more income and jobs than its neighbouring cities [17,18], creates wealth faster (by attracting resources, using the natural environment, producing products and services), and provides prosperity in the process of competition and development compared to other cities [19,20].

The literature review showed that there are simultaneously two levels that constitute the components of urban competitiveness:

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Economic entities in the area and the ability to create an environment that fosters their productivity and competitive advantage,

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The city’s ability to provide a high standard of living for its residents.

On the one hand, cities provide opportunities for economic entities to increase productivity, which to some extent influences the quality of life of residents [21]. On the other hand, there are urban policies that have an effect on the quality of the residents’ lives through measures aimed at increasing the attractiveness of the area.

A city’s competitive advantage refers to the characteristics, resources, innovation, and strategies that allow the city to outperform other cities and attract investors, entrepreneurs, talent, and tourists [22].

It is worth noting that each city or region has its own unique factors and conditions that influence its competitive advantage. Understanding these factors and focusing on developing them can help build a competitive and sustainable economic and social environment. For cities, this involves highlighting their strengths by exploiting opportunities in the environment, eliminating or minimising weaknesses and threats. In times of global crises and disruption, the success of urban economies lies not only in achieving technological and economic advantage, but also in developing resilience, adaptation, and creative use of changes in the environment [1].

Researchers distinguish several dimensions of competitiveness, which can be characterised in terms of external and internal factors as well as in terms of resource, qualitative, instrumental and systemic, and micro- and macroeconomic factors.

Table 1. Classification of factors of city competitiveness.

Author	Classifications of Factors
Webster and Muller (2000)	economic structure, territorial equipment, institutional environment, human resources,
Porter (2001)	factors of production (labour, infrastructure, research facilities), demand factors (specificity of domestic demand), related and supporting sectors (suppliers and related or supporting companies), strategy, structure, and competition of businesses (conditions for setting up and methods of managing businesses),
Fratesi and Senn (2009)	microeconomic (availability of capital, knowledge, quality of education system), macroeconomic (transport infrastructure, research, networks, science–business relations, institutional and cultural (regional governance, local market, clusters), spatial organisation (agglomeration advantages), relational (non-commercial interdependencies, social networks),
Kresl (2013)	economic (production factors, location, infrastructure), strategic (government efficiency, urban strategy, public–private sector cooperation)

Source: Authors’ analysis based on [18,23,24,25].

shows the classification that the selected authors use as regards factors of city competitiveness.

The classification of urban competitiveness factors listed in Table 1 corresponds to the three groups of factors identified by the European Commission as important for regional competitiveness [26]:

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The city’s infrastructure and accessibility, both external and internal; the road and rail system; air transport; technological and knowledge infrastructure (educational units); the quality of the location, i.e., housing, the natural environment, cultural institutions, and the level of security;

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Resources and people, influenced by demographic trends (skilled migration, diversity), and the availability of highly skilled workers;

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Business environment: organisational and business culture, barriers to entry, methods of approaching risk, level of industry concentration, internationalisation and innovation, quality of the institutional environment, availability of capital, level of specialisation, and the nature of competition.

Clearly, the factors determining the competitiveness of cities form a multidimensional space of interrelated elements of both internal and external nature. By considering the classification of competitiveness factors given in Table 1 and the metrics used in the development of city competitiveness indices (e.g., Global Urban Competitiveness Report and Global Power City Index), it is possible to distinguish the most prevalent dimensions of urban competitiveness along with its typical factors: economic; social; and those related to the environment, innovation, and technology. They are useful, for example, in the selection of metrics for diagnosing problem areas and following from there, for formulating urban development policies.

• Economic dimension

The economic dimension of competitiveness of cities significantly impacts their overall competitiveness. It encompasses a range of factors that can influence their capacity for attracting investment, creating jobs, developing economic sectors, and generating economic growth. In economic terms, competitiveness is closely linked to productivity [21], which is influenced by factors such as infrastructure [25], cluster and industrial specialisation [23], and entrepreneurial climate [27].

• Social dimension

In the social dimension, competitiveness factors are associated with human capital and are intangible in nature. They are human resources [27], education and skills [24], public safety, social equality and inclusion [28], social dialogue, and participation.

• Environmental dimension

Economic development is often determined by environmental resources and how they are exploited, and competitive economies are also defined by knowledge-based innovation and eco-efficiency [29]. Environmental protection is becoming one of the priorities for regions and cities. The pro-environmental measures taken are often treated as necessary to maintain the competitiveness of an area, due, for example, to the energy intensity of certain industries [27]. Increasing the competitiveness of a city in the environmental domain can be influenced by sustainable management of natural resources, environmental protection, reducing gas and pollutant emissions, eco-innovation, and circular economy.

• Innovation and technology dimension

Fostering a favourable innovation environment, promoting research and development, and taking advantage of modern technologies can contribute to the evolution of a dynamic and forward-looking locality. The capacity for generating and implementing innovation is considered one of the important factors for increasing competitiveness. It can be achieved through [30] technological infrastructure, investment in research and development [27], technology education and training, policies that support innovation, smart technologies, and digital services [31,32].

The interplay between the discussed dimensions and measures leads to synergies in the final outcome, which is increased energy efficiency of a given area. That can have an advantageous effect on all of the discussed dimensions of urban competitiveness. The authors consider this observation to be of great relevance in the assessment of the impact of energy policy on city and regional planning.

If reference is made to Michael Porter’s definition of competitive strategy, it is evident that the strategy of the lowest cost leader is actually incorporated into the strategies of cities and regions [33], which, for example:

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Offer energy-efficient solutions to attract companies that are increasingly environmentally conscious and are looking for partners and locations that meet high sustainability standards.

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Build up the city standing at a national or a regional level; lower operating costs for companies operating in energy-efficient cities contribute to increasing their competitiveness on the market, and, at the same time, influence the energy efficiency of the economy as a whole [34].

The analogy with M. Porter’s competitive strategy provides the effect of assessing the value offered by a city to its current and future inhabitants. Their assessment of the uniqueness of the benefits of living in a city can be achieved as a result of:

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Reduced emissions of greenhouse gases and other harmful substances, which has a positive impact on the environment and the health of residents.

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Energy efficiency that requires implementation of innovation and new technologies, which puts cities that focus on the development of renewable energy or smart grids in an advantageous position to become leaders of innovation and thus, to bring together those sectors that offer not only a less disruptive impact on the urban environment but also more attractive working conditions for residents.

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Introduction of less disruptive urban management solutions.

Given the synergy of energy efficiency achieved by cities, it appears useful to discuss different examples of its occurrence. They will be examined in the next part of the article.

3.2. The Defining Qualities of Energy Efficiency and Its Relevance for the Economy

Energy efficiency is an important issue in the context of ensuring national energy security and creating appropriate conditions for implementing the adopted energy policy [35]. The legal regulations consistent with the development directions of the European Union and the principle of sustainable development are of consequence here.

The 1997 Energy Law provided that the main goals of the state energy policy should be to ensure energy security of the country and increase the competitiveness of the economy and its energy efficiency, as well as protect the environment, including the climate [36]. The law also introduced a requirement for an energy policy to be formulated every 4 years. The Law on Energy Efficiency defined energy efficiency as the ratio of the achieved amount of usable effect of an object, technical device, or installation under typical conditions of its use or operation to the amount of energy consumed by this object, technical device, or installation or as a result of the performed service necessary to achieve this effect [37]. The concept of energy efficiency is not only related to electricity, but it also includes issues associated with energy in general, including thermal, electrical, and mechanical energy. The overarching goal related to energy efficiency is to strive for its improvement, i.e., to achieve energy savings through the introduction of appropriate measures.

Table 2. Advantages of implementing energy efficiency measures.

Specification	Description
Energy saving	Reducing energy consumption
Lower energy-related costs	Reducing energy-related costs
Energy security	Less dependence on energy prices and the ability to make energy more accessible
Improving air quality	Reducing greenhouse gases and smog
Environmental protection	Reducing climate change, groundwater pollution, land devastation, etc.
Increased competitiveness of businesses	Increasing the competitive advantage of companies by being able to maintain productivity and production quality at lower costs, reduced production down-time, and increased product quality.

Source: Compiled by the authors based on [38,39,40].

indicates the more important advantages of taking measures to improve energy efficiency.

The direct and key advantage of improving energy efficiency is a reduction in energy consumption. In addition, it leads to lower energy-related costs. This argument appears to be particularly relevant given the significant increases in energy and energy prices spurred by the war in Ukraine and the coal embargo by Russia [41]. Energy efficiency frequently has positive impacts on energy security, a concept that encompasses, among others, security of supply, demand, and revenue. Lowered energy demand may reduce the stress on energy resources and support long-term energy availability [42].

Improving energy efficiency significantly influences the competitiveness of companies and, indirectly, cities. Companies that target energy efficiency in their operations should be able to maintain their productivity and quality of production at a lower cost, thereby increasing their competitive advantage.

Table 3. Actions to improve energy efficiency.

The Area	Description of Activities
Construction	- thermo-modernisation, - passive building design and its orientation towards harnessing solar energy, - low embodied energy materials for building construction, - building integrated renewable energy technologies
Equipment	- replacement of appliances with energy-efficient ones (household appliances, RTV)
Production processes and installations	- modernisation of heating systems - optimisation of electrical processes and installations that use energy in various forms, such as compressed air systems
Companies	- modernisation of old equipment and installations, - improvement of energy efficiency of production processes,
Energy consulting	- energy audits of buildings, - white certificates, - supervision of the investment process.

Source: Compiled by the authors based on [38,43,44].

lists the areas of energy efficiency relevance along with the measures to improve energy efficiency.

Energy efficiency of a building is defined by its ability to provide comfortable use at the lowest possible energy consumption. The potential for energy efficiency in the building industry is most often seen in thermo-modernisation, replacement of equipment with energy-efficient equipment, and investment in renewable energy sources. Such investments contribute to energy efficiency as renewable energy sources are more efficient and productive compared to traditional energy sources. In addition, the use of renewable energy sources facilitates the energy transition by altering the way energy is produced and distributed, which leads to reduced greenhouse gas emissions and improved environmental quality [45].

Data from the EU Commission indicate that about 75% of buildings in the EU are energy inefficient, wasting as much as up to 60% of the supplied energy. At the same time, the building sector is reported to account for about 40% of the EU energy demand [38].

The topic of energy optimisation is often discussed in the context of energy installations and processes.

A variety of energy efficiency measures are provided by the Energy Efficiency Law. These include [37]:

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Implementation and financing of projects to improve energy efficiency,

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Purchase of solutions that offer low energy consumption and operating costs,

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Replacement or modernisation of equipment, installations, and vehicles to enable energy consumption reduction,

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Implementation of management systems geared towards improving energy efficiency,

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Implementation of thermo-modernisation or low-emission projects.

Table 4. Energy efficiency optimisation actions.

Cost-Incurring Actions

Cost-Saving Actions

- insulation of the building envelope, - modernisation or replacement of window/door woodwork, - modernisation of the heating system, - installation of energy management systems, - modernisation of energy equipment and installations (replacement of motors, pumps, control systems).

- turning off lights/appliances when leaving the room, - using natural light, - using only the necessary amount of water for cooking, - optimizing temperature setting when heating or cooling, - using sleep mode in electronic devices, - applying effective energy management techniques such as daylight harvesting, occupancy-based controls, time-scheduling, task-tuning, personal controls, and response-to-demand.

Source: Compiled by the authors based on [46,47,48,49].

shows selected tools and actions to improve energy efficiency, broken down into those that involve no expenses and those requiring financial investment.

The fact that energy efficiency measures can be financed with public funds is worth highlighting. Energy optimisation projects are subsidised by funds allocated for improving environmental sustainability. Upscaling energy efficiency is an issue supported not only at the national level, but also at the level of provincial, county, district, and city governments [50].

Although the topic of energy efficiency is most often addressed in relation to buildings, equipment, manufacturing processes, installations, and enterprises, it is no less important to discuss it in the context of cities.

A key aspect of energy efficiency in the urban economy is thermal insulation of buildings. Well-insulated buildings require less energy for heating and cooling, leading to lower energy consumption and operating costs. What is primarily required to achieve energy efficiency are measures that lead to a reduction in the demand for thermal energy to heat the building or prepare hot water, e.g., thermo-modernisation [51].

Another important factor contributing to improved energy efficiency in cities is developing public transportation. Promotion of public transportation, including electric means of transport, can reduce emissions and energy consumption compared to individual means of transportation [52]. Likewise, modernisation of lighting in buildings, as well as street lighting, using energy-saving technologies such as LEDs, makes it possible to significantly reduce energy consumption [53,54,55].

Intelligent lighting management systems that automatically adjust brightness depending on weather conditions and movement can also contribute to energy savings [56,57]. Replacing energy-intensive sodium and mercury vapour lamps with LEDs can reduce electricity consumption by 50% [58].

In the era of modern technology development, smart energy management is particularly important for achieving energy efficiency in cities (smart city concept). Smart cities use cutting-edge technologies to increase energy efficiency, economic development, and sustainability, and to improve the quality of life for urban residents [59,60,61,62].

According to the smart city concept, cities with aspirations to be smart should be designed and developed with respect for the local community and cultural heritage, as well as in consideration of the economic calculus and negative environmental impacts. The solutions proposed under the smart city idea can ensure the quality of indoor conditions, and most importantly, influence the reduction of energy consumption and costs [63].

Aspects of smart city development on the grounds of energy are undertaken by the European Association of Energy Institutions, among others, focusing on the advancement of low-carbon energy technologies [64,65].

As for energy aspects in relation to smart cities’ energy efficiency, energy-efficient equipment, tax credits for such investments, and thermo-modernisation of buildings to reduce their energy intensity among other things, appear the most salient [66].

Energy efficiency is seen as one of the most important ways to combat the energy crisis [48]. Improved energy efficiency makes it possible to perform planned activities with lower energy consumption. Polish companies and cities may benefit from this type of undertaking not only both economically and environmentally, but also in terms of their attractiveness. However, the decisions on how, when, and where to implement energy efficiency upgrades are influenced by many factors, both technical and non-technical [67]. Cities that actively invest in energy efficiency see significant advantages: they become leaders in sustainability and are more attractive as places to live, work, and invest, which impacts their competitiveness in both the domestic and international markets.

In conclusion, investments in energy efficiency exert a significant impact on the competitiveness of cities. Reducing energy consumption, protecting the environment, developing the local economy, improving the quality of life of urban residents, and fostering a positive image are just some of the advantages of investing in energy efficiency. It is therefore important for cities to continue and to ramp up their efforts in this area in order to become leaders in sustainability and gain a competitive advantage for the future.

3.3. Survey Results

The management of local development is subordinated to the achievement of a number of goals related to satisfying the needs of different groups of recipients of territorial offerings. As a result, regions, as well as towns and cities, compete with each other to attract new residents, investors, and tourists or even the attention of politicians. The competition of cities, or more broadly spatial units, is associated with the influence of local authorities on the various areas of their functioning. This concerns components of the territorial offer used by particular groups of recipients, such as residents of different age, tourists, or entrepreneurs. Such activities are usually planned in the development strategies drawn up by local government units at various levels a few years or even several years in advance. According to the provisions of the Act, the development strategy of a city should contain a number of mandatory elements, such as a diagnosis of the socio-economic situation, and specify development objectives and the anticipated results of their achievement [68].

In accordance with the methodological approach adopted for the study, the current development strategies of selected cities were analysed. The starting point for the analysis was the formulation of several questions that allowed the authors to reproduce and elucidate the logic of public intervention related to the impact on energy efficiency of local socio-economic ecosystems. As a result, the analysis of strategic documents was conducted to glean the following information:

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The year of the adoption of the strategy,

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Acknowledgement of the need to improve energy efficiency of the local socio-economic ecosystem in the development challenges,

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Anticipation of the impact on energy efficiency within the framework of the strategic objectives,

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Identification of areas where activities to improve the energy efficiency of the local socio-economic ecosystem are planned to be undertaken,

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Determination of the anticipated advantages of investments in energy efficiency.

As for the year of adoption of the strategy, it is necessary to note that the documents had taken many months of preparation before their final version could be drawn up due to the fact that the interests of different stakeholder groups had to be negotiated. According to the Polish law, the process leading to the adoption of a development strategy includes, for example, social consultations with the local social and economic partners and residents [69]. The analysis showed that out of the 18 development strategies, the majority (11 documents) were drafted in 2020 or later. This may explain the fact that the documents made references to a number of environmental issues, including those of energy efficiency. In 2019, for example, the European Green Deal, the EU comprehensive strategy for protecting the environment and combating climate change, was announced [70]. Obviously, the discussion of the relevance of taking environmental aspects into consideration when planning different types of activities must have started earlier; nevertheless, it usually is the case that it is legislation (in the broad sense of the word) that precipitates the adoption of certain attitudes and actions by various entities, including local authorities [71]. The work undertaken to establish support programmes as set down in the 2021–2027 EU financial perspective, which includes ample provisions for impacts on environmental objectives [72], may also be of significance. This is confirmed to some degree by the analysis of the programme documents where three out of the seven development plans drafted before 2020 do not include this type of impact, whereas two of the seven do so to a limited extent. It would also appear that the turning point for the inclusion of energy efficiency objectives in development strategies was in 2019 when the discussions on the EU Multiannual Financial Framework commenced [73]. This timing coincidence, therefore, may have prompted the local authorities to rationalise their approach to urban development planning, and the decision to include energy efficiency aspects may have been motivated, at least to some extent, by the desire to increase the likelihood of tapping into the EU funds earmarked for this purpose.

From the point of view of the logic behind any public intervention, it is crucial to diagnose the existing state of development and, on that basis, define development challenges. The review of the strategic documents shows that issues related to the need to respond to climate and environmental changes are recognised at the stage of defining the development challenges. Only two documents (one developed in 2015 and the other in 2019) do not include such references. As for the remaining documents, they primarily take into account issues related to reducing pollutant emissions and—largely related to this—the organisation of urban public transport systems. In four cases (Kraków, Lublin, Warszawa, Wrocław), the need to optimise energy consumption and increase the use of energy from renewable sources are included among the challenges. Otherwise, the challenges are formulated in a very general way, indicating the need to lessen the impact on the environment or adapt to climate change.

Appropriate activities that take a tangible form as development objectives and related specific projects are the response to the diagnosed development challenges (of course, they span beyond the issues of environmental impact). Unsurprisingly, in each of the analysed strategic documents, the development goals are formulated according to a different formula and at a different level of generality. Hence, the following characterisation does not distinguish between the level of objectives (main or operational) as oftentimes the conventions adopted in the different documents mean that what is the level of detail for operational objectives in one document corresponds to the level of main objectives in another.

The summary of goals and related activities of cities makes it evident that activities related to energy efficiency (

Table 5. Urban development goals and proposed measures that take into account environmental challenges, including those related to energy efficiency.

City	Year of Drafting	Development Goals	Proposed Actions
Białystok	2021	Green and low-carbon Białystok. High quality spatial and technical solutions in harmony with the environment.	- modernising energy supply and optimising energy consumption in buildings and facilities managed by the city, - increasing the share of renewable energy sources, RESs, in the total amount of energy produced and consumed in the city, - modernising public facilities, - replacing central heating boilers and stoves with more efficient, lower-emission, renewable-energy equipment, - promoting passive building and RESs, - developing and coordinating an integrated transportation system, - improving the state of public transport fleets in terms of emission values, and their transition to non-fossil energy sources, - developing electric vehicle charging infrastructure.
Bydgoszcz	2020	A healthy and safe environment, including: - clean air, climate protection, and adaptation to climate change. Modern transportation and communication, including: - friendly, ecological, functional, and safe transport solutions.	- implementing projects related to the development of zero- and low-carbon forms of transport in the city, - implementing solutions aimed at rationalising/reducing energy consumption in public buildings and within the framework of implemented urban services, - promoting energy-efficient construction, - purchasing modern bus and streetcar fleets (zero- and low-emission, adapted to the needs of people with disabilities), - participating in activities related to the development of inland navigation and use of international waterways.
Gdańsk	2022	Green City, including mitigating negative environmental impacts and reducing greenhouse gas emissions and pollutants, including noise. Innovative city, including: - strengthening a diversified, smart, and competitive economy that is socially and environmentally responsible, including low-carbon production, advanced services, and research and development, and - energy transformation and modernisation of technical infrastructure networks.	- energy transformation, - pollution reduction.
Gorzów Wielkopolski	2021	A city prepared for the challenges of the future	- conducting thermo-modernisation of public facilities and residential buildings, - employing technologies based on renewable energy sources, - supporting the development of innovation in the field of environmental and ecological policy in the city.
Katowice	2023	Entrepreneurship and economic development. Climate and urban ecosystem. Space and infrastructure.	- energy transformation towards low- and zero-carbon economy (RESs, passive construction, Circular Economy, blue-green infrastructure, low- or zero-carbon transport), - development of photovoltaic farms, - development of infrastructure for low- and zero-emission modes of transport.
Kielce	2022	Environmentally responsible city—reducing the city’s negative impact on the environment and preparing Kielce for climate change.	- increasing the share of energy from RESs (e.g., photovoltaic or biofuel), - upgrading lighting systems in the city towards energy efficiency, - minimising environmental impact by gradually moving away from non-renewable energy sources and supporting production of energy from renewable sources, - implementing measures included in low-carbon strategies.
Kraków	2022	Kraków tomorrow: we want a sustainable environment.	- reducing industrial emissions, improving energy efficiency, and reducing greenhouse gas emissions.
Lublin	2022	Lublin: sustainable and balanced urban development, including: - energy transformation of the city and clean air.	- expanding technical infrastructure and creating conditions required for the development of urban electromobility, - expanding city transport offerings with zero-emission means of public transport; creating conditions and supporting clean energy generation and storage, - improving energy efficiency of the city’s technical infrastructure and public facilities.
Łódź	2021	Łódź: strong and resilient. Łodź the Delightful.	- improving energy efficiency of buildings, - developing and maintaining blue-green infrastructure, - decarbonising public transport and municipal economy, - developing zero-carbon mobility (e.g., electromobility), including shared mobility, - local production of energy from RESs, including public spaces, public buildings, households, and residential communities.
Olsztyn	2022	Open city	- developing low-emission and zero-emission transport, - developing and promoting eco-mobility.
Opole	2019	Green city and people-friendly space, including: - green mobility and smart solutions.	- developing low- and zero-emission public transport, - developing low-emission public transport and other environmentally friendly forms of mobility.
Poznań	2010	- Data not available—only an incomplete version of the strategy was provided.
Rzeszów	2015	Making use of the available resources—clean energy and a rich heritage, protecting and managing natural and cultural environmental assets and resources, including: - decarbonisation of the urban economy.	- increasing the share of renewable energy, e.g., by installing photovoltaic systems in public buildings, - improving energy efficiency of public lighting systems, - improving energy efficiency (thermo-modernisation) of public and residential buildings.
Szczecin	2011	Data not available	- Data not available
Toruń	2018	Toruń as a city of spatial order, including: - further improvement of the condition of the environment in the city.	- diversifying energy sources, including renewable sources, - increasing energy efficiency in a general sense.
Warsaw	2018	Data not available	- Data not available
Wrocław	2019	Reinforcing solidarity and creativity, improving the quality of life throughout the city, and bolstering the position of the city in global networks.	- zero-emission public transport, - river transport, - increasing energy efficiency and use of RESs, - RES investments on public buildings’ rooftops, - implementing waste, water, and energy management systems.
Zielona Góra	2023	A city in a favourable climate, including: - reduction of emissions and energy intensity.	- sweeping thermo-modernisation and utilisation of RESs in public buildings, including buildings of municipal companies and all municipal organisational units, - using RESs to power electric buses, - supporting thermo-modernisation of private resources, including continuation and expansion of the programme for the replacement of boilers with ecological ones, - energy-efficient street lighting in the city, - utilizing RESs for production of electricity and heat for the city (e.g., solar energy and thermal energy from thermal waters).

Source: Compiled by the authors, based on the development strategies of the studied cities.

) vary both in terms of the formulation of strategic objectives as well as the proposed actions. For the goals formulated for strategic urban development, reference is most often made to a broader context than energy efficiency itself, e.g., the need to meet environmental challenges, reduce greenhouse gas emissions (carbonisation of the economy), and develop environmentally friendly transportation systems. Relatively rarely, if only at the level of specific goals, are there indications of the need for energy transformation or reduction of the energy intensity of the economy (Gdańsk, Lublin, Zielona Góra). Energy efficiency is therefore placed in a broader context, which, in a way, is the correct approach. On the other hand, however, a very general approach to the formulation of goals, while ensuring a greater scope for action, entails the risk that they will not be fully comprehensible to individual partners and stakeholders in the urban development. After all, it should be remembered that local socio-economic systems are only partially directly managed by local authorities. To a large extent, their functioning is constrained by the decisions of entities independent of the city authorities (businesses, residents). In the absence of clearly defined goals, it may be difficult for individual recipients of the strategy to realistically assess what kind of actions they should take.

As for the measures themselves, they are intended to be of dual nature, depending on how they influence energy efficiency. One group of measures includes all activities that optimise energy consumption, such as modernisation of energy-intensive infrastructure to reduce energy consumption. This includes both the modernisation of buildings (thermo-modernisation), transition to electric or hydrogen-powered vehicles, and replacement of heat sources. Another area is investment in energy production based on renewable sources, especially solar energy. Such activities do not necessarily involve reduction of energy consumption in general, but rather aim to increase the share of renewable energy in final energy consumption. Finally, there are measures to optimise different types of activities, particularly when it comes to the transportation system. These do not involve investment in new rolling stock, but they tend to improve the attractiveness of public transportation.

Polish cities are investing in energy efficiency, as evidenced by the high turnout in the ECO City competition organised by the French Embassy in Poland and by numerous related activities. One example is the project initiated in 2022 called the Next Generation Engineers, with the aim to implement Danish solutions for improving energy efficiency in Lodz [74]. Another example of a project aimed at increasing energy efficiency of Polish cities was the modernisation of lighting systems in Warsaw in 2019, which included improvements to the installation of street lighting that brought about a 77% reduction in energy consumption. The investment saves the city 1.374 million annually [38]. It is worth noting that due to spikes in electricity prices, many cities in Poland, including Wrocław, have introduced electricity saving plans [75].

The analysis of the measures planned to improve energy efficiency of the socio-economic systems of cities revealed the expectations associated with their introduction or the expected long-term results that have a bearing on the functioning of the cities, including their ability to cope with competition with other cities, at all different levels. Considering the structure of the planned measures, it may be concluded that the primary expected result of the measures to boost energy efficiency is improved quality of life in the city. The main recipients of the effects of the measures are therefore its present and prospective residents. This seems understandable in view of the current demographic trends associated with population distribution. Admittedly, cities are in a good position (especially the larger ones), as the migration flows are directed to them. Nevertheless, there are considerable differences between cities in the broadly understood territorial offer. Jobs are only one aspect. Another is the quality and availability of municipal services defined in general terms. Their development, in turn, depends on the ability of cities to invest in them and cover their operating costs. The availability of financial resources is to some extent dependent on the number of inhabitants contributing part of their taxes to the city budget. Investing in fostering a good quality of life (e.g., high-quality public transport, smog-free air) is therefore an investment in long-term development.

There are more current examples of actions undertaken [76] in Polish cities. In Gdańsk, for example, the city authorities aim to significantly reduce energy consumption by engaging in the renovation of older municipal buildings. In addition, the city is also investing in energy-efficient facilities heated with heat pumps. An energy-efficient school is also being built there, where intelligent energy and thermal comfort management systems will be installed to help boost the facility’s energy efficiency as well as to achieve greater savings. In Bydgoszcz, the municipality has invested in an LED street lighting system and sensors that measure traffic. The city will replace 7309 lamps at a cost of more than PLN 22 million. This investment will allow the city to reduce its electricity expenditure by 30 to even 40 per cent. In addition, sensors will be mounted on the lighting poles to measure traffic intensity and adjust the lighting accordingly. When the traffic is heavy, the LED luminaires will emit maximum light, while when the traffic decreases, the illumination, and therefore the electricity consumption, will also decrease. In Lublin, on the other hand, the city has invested in sustainable mobility solutions. The main mode of public transport there is trolleybuses, which have been operating in Lublin continuously since 1953. Thanks to the investments, Lublin is expected to gain 26.4 km of new trolleybus routes, which should significantly reduce reliance on internal combustion vehicles. In addition, the city has introduced a public bike rental system, as well as comprehensive and active communication with the public, including a broad range of educational, informational, and promotional activities [76].

The discussion makes it evident that reducing energy consumption brings about measurable savings that can be used for investment to improve the quality of life or conditions for further investment development. Although the analysis has focused mainly on the activities undertaken at present in the largest Polish cities, similar activities have previously been taken on all over Europe, also in smaller cities. Examples include the analysis of good practice developed in the course of the MODEL project (Management of Domains Related to Energy in Local Authorities). The project, carried out in the first decade of the 21st century, apart from providing recommendations for local authorities on how to improve energy efficiency, also identified a number of cities across Europe that implemented effective solutions to reduce energy consumption [77].

The analysis presented in

Table 6. Energy efficiency measures implemented in selected European cities.

City	Type of Action	Effect
Brno (Czech Republic)	Thermo-modernisation of old blocks of flats.	More than threefold reduction in heating energy consumption and reduction of energy required for water heating by more than a half.
Osijek (Croatia)	Thermo-modernisation of a public building (nursery school).	Reduction of heat demand by 71% and heat load of the building by 72%.
Brocēni (Latvia)	Thermo-modernisation of 15 buildings.	Reduction of thermal energy consumption by more than 50%.
Bielsko-Biała (Poland)	Use of RESs (geothermal, biogas, solar, and biomass).	Reduction of costs related to thermal energy consumption.
Kirklees (United Kingdom)	Integrated energy management system (energy audits for public buildings, RES implementation, green consultancy for building managers, etc.).	Reduction of energy costs and significant reduction of GHG emissions (improved air quality).
Dobrich (Bulgaria)	Building a database of municipal buildings and energy energy consumption, modernisation of heat sources, thermo-modernisation of buildings.	Reduction of costs related to electricity and heat consumption.

Source: Compiled by the authors based on [77].

reveals the versatility of the actions taken to reduce energy intensity of the local socio-economic systems. It also shows a preference for measures that lead to measurable benefits in the form of reduced costs. The savings may be allocated to other activities (e.g., investments in infrastructure or social services), which may bolster the attractiveness of the cities for different groups of recipients based on their offerings.

The savings mentioned above are not the only benefits that result from measures to increase energy efficiency of local socio-economic systems. The projects also have the potential to improve the image of cities, increase the value of council-owned real estate, or improve the health of residents as a result of reduced emissions into the atmosphere.

In the context of influencing the competitiveness of cities by improving energy efficiency, another aspect mentioned above should also be borne in mind—competition for resources, i.e., the capacity for the acquisition of funding from EU funds. As a result of the environmental policy being pursued at the European level, the underlying assumptions for programmes under the EU Financial Perspective 2021–2027 put much emphasis on environmental issues. In principle, measures financed with European funds may not have negative impacts on the environment, e.g., through increased greenhouse gas emissions or increased consumption of resources. The DNSH, i.e., Do No Significant Harm principle, must be adhered to in each activity. It stems from the environmental objectives adopted in the European policies (climate change mitigation; climate change adaptation; sustainable use and protection of water and marine resources; transition to a circular economy; pollution prevention and control; protection and restoration of biodiversity and ecosystems) [72]. Failure to incorporate environmental issues in a development strategy would hinder the acquisition of funds because demonstrating the linkage between the development strategy and higher level strategic and programming documents would not be possible.

Of course, investments in energy efficiency also mean tangible ongoing benefits as operating costs for the city. It is worth noting that on the one hand the increase in energy costs motivates municipalities to invest in modern technologies to monitor energy consumption, manage lighting and photovoltaics systems, and to look for savings in other areas [78]. Municipalities are aware that abandoning investment in the development of municipal services may negatively affect the quality of life in the city. On the other hand, in the city strategies, no clear link is established between these arguments and the prominence of the impact of the energy savings of the cities on improving their competitive position and potentially gaining a competitive advantage.

4. Discussion

The results of the study answered the questions concerning the determinants of the local administrations’ approaches to formulating energy efficiency objectives (strategic and operational), energy efficiency measures taken into account in municipal investment planning, and the rationale for local governments’ investments in energy efficiency in a general sense.

The approach taken by the authors of this study has apparently rarely been applied. The literature review showed that the prevalent course of action taken by researchers has been to focus on the micro scale, on enterprises, especially as regards building competitive advantage of companies and the factors that determine it, e.g., [79,80]. In the case of energy efficiency, the reviewed publications focused on the macro scale (energy efficiency of a country), e.g., [81,82,83]. As regards meso-scale studies, those that discussed assessing the impact of urban policies tended to concentrate on environmental issues and aspects of the health of their citizens, e.g., [84,85].

Therefore, it would appear that this study, which shows that by taking action to improve energy efficiency cities and regions increase their attractiveness to residents and investors, thereby building their competitive advantage, fits in with this trend. The question of how local authorities can both influence and identify the benefits of energy efficiency remains open. It was stated earlier that from the perspective of urban development it is desirable to increase the interest of the current and potential consumers (e.g., present and prospective residents, investors, tourists) in their territorial offerings. Of course, it is not possible to claim that these effects are a direct effect of energy efficiency measures. Whether these impacts are achieved depends, for example, on the quality and type of decisions taken by local authorities, including the purposes for which the savings resulting from reduced energy consumption are allocated. It should also be borne in mind that urban development is subject to socio-economic conditions, such as demographic trends and the general condition of the economy. Those factors may also limit the potential for positive effects.

The authors would also like to draw attention to the methodology they followed in the study. Combining the results of the literature review and the results of the city development strategies review allowed them to gain unique insight into the researched problem. The juxtaposition of the theoretical findings concerning the impact of the local socio-economic systems on energy efficiency with what happens in actual practice in this regard enabled us to demonstrate that by taking action to improve energy efficiency, cities and regions can boost their attractiveness for residents and investors. Furthermore, it seems that an issue worth further attention is finding a way to determine both financial and non-financial impacts of energy efficiency improvements. That would require going beyond the analysis of strategic documents to the analysis of budgets, preferably spanning a longer timeframe. A certain difficulty in this respect may be posed by the fact that some of the measures, as was pointed out in the conducted analysis, may be implemented by entities independent or only partially dependent on local authorities. The identification of impacts may therefore be more complicated. Nevertheless, the proposed approach to examining the effects of measures to improve the energy efficiency taken by local socio-economic ecosystems seems worth pursuing. Identification of such impacts may change the attitude of the local authorities towards undertaking this type of action, as well as provide valuable guidance for strategic planning processes.

5. Conclusions

As stated in the beginning, competitive advantage of cities may be a consequence of different combinations of features of their territorial offerings. The key to success is to develop a strategic plan and invest in infrastructure development, education, entrepreneurship, and the promotion of the city as an attractive place to live, work, and invest. To be competitive, cities should also have the capacity for adapting to evolving circumstances and global challenges. One such challenge consists in improving the quality of life of urban residents in view of sustainable development, and one way to address this is through measures aimed at increasing the energy efficiency of the area. Better energy efficiency entails lower energy costs, increased thermal comfort for residents and investors, a healthier environment, better mobility, and increased accessibility to services.

Frequently, urban energy efficiency can be improved with a slight shift in the regular behaviour of city inhabitants (e.g., switching off lights/devices when leaving the room and adjusting the heating or air conditioning temperature to an optimal level), and also frequently, impacts on those aspects of life that are beyond the formal influence of the local authorities come into play. That would suggest a need for the local authorities to establish proactive and open information policies to engage urban residents without whom the desired change may not be effected.

It is important to note that cities are not left to their own devices in this respect. Many of the financial resources required for energy efficiency investments can be acquired from external sources (e.g., from the EU). In fact, acquisition of funds appears to be one of the stronger motivators for local authorities to plan activities aimed at improving energy efficiency of their local socio-economic systems. The analysis showed that out of 18 urban development strategies, a majority (11) were developed in 2020 or later. Consequently, these documents included references to various environmental issues, including those related to improving energy efficiency. The announcement in 2019 of the European Green Deal seems to have spurred certain attitudes and actions of local city authorities. Also, not without significance was the fact that at that time efforts were undertaken to develop support programmes envisaged in the EU Financial Perspective 2021–2027, which included a broad range of impacts for environmental objectives. Thus, the benchmark point for the inclusion of developmental objectives associated with energy efficiency impacts in the strategic documents seems to be 2019, when negotiations concerning the EU Multiannual Financial Framework started.

Our analysis shows that transport systems and tapping into green electricity are the key areas of planned measures in the context of the researched topic. The strategic documents of the cities included in the analysis attach great importance to the modernisation of public transport infrastructure and development of renewable energy sources, although provisions vary in their details. Almost all the documents (in three cases, there was not enough information in the analysed materials) make references to the abovementioned measures. In a number of them, the measures are overtly specified (e.g., for Białystok, Bydgoszcz, Katowice, Lublin, Łódź, Olsztyn, Opole, Wrocław, Zielona Góra), while in others they are defined in a much more general way (e.g., for Gdańsk, Kraków).

The second type of incentive for the local authorities, apart from the previously mentioned wish to obtain external funding, is the competition for other resources important for the development of the city. The rivalry between cities for inhabitants and entrepreneurs is reflected in the structure of the planned activities and provisions included in the strategic documents. Their major impact seems to be improved quality of life in the cities. Measures taken to improve the infrastructure, the quality and accessibility of generally understood municipal services, the quality of the existing public transport, and the quality of air, are investments in the long-term development of cities that also curry favour with different stakeholder groups. Taking into consideration the fact that the main recipients of the effects of the measures taken by the cities are the present and prospective inhabitants and investors (who, first, by settling in the cities, providing work to others by creating new jobs and buying from the local suppliers of goods and services, and later, by paying taxes, contribute to the development of the cities), it is a self-reinforcing mechanism. City leadership seems to be well aware of this.

This is the point where the limitations of the research need to be addressed. The authors are aware that the analyses of both the literature on the subject and the strategic documents of the selected cities are just a starting point for further considerations of the relevance of energy policy in shaping local competitive advantage. Although all measures declared by the cities aim to improve the local energy policy and thus increase the quality of life and work of the inhabitants, the need for further research in this field is quite evident. In smaller urban centres or rural areas, the approach to such issues may be rather different. Such areas do not offer, for example, opportunities to invest in public transport infrastructure, as it is, for obvious reasons, less developed in rural areas.

In addition, it may be worthwhile, in the longer term, to evaluate the measures declared by the municipal authorities, to assess the effectiveness (including the level of energy savings achieved and the environmental effects resulting from them) and efficiency of the measures taken (to what extent the resources allocated for investments from public funds enabled the maximisation of the results achieved).

The authors of the study also wish to point to the need to intensify activities in the field of energy efficiency of cities in all previously discussed areas of competitiveness. Due to the multidimensional nature of urban competitiveness, it seems necessary to plan them in an integrated manner paying equal attention to social, cultural, environmental, and economic dimensions.

The analysis of the literature has shown that the competitive standing of cities in the areas listed above should be strengthened by:

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Assuming that energy efficiency achieved in a given area will have an impact on other areas, as a result of which it will lead to improved competitiveness of the cities through synergy effects;

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Highlighting within the economic area how important entrepreneurship is in improving the economic attractiveness of cities, and also their social attractiveness, where entrepreneurial climate is achieved through innovativeness across the entire community (city residents, investors, etc.). This also results in an increase in the level of application of various types of energy efficiency innovations and their possible implementation in the area;

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In summary, it can be concluded that the study has provided insight into the determinants and prerequisites for local authorities to exert influence on and impact energy efficiency, as well as a basis for further research in this area. The conclusions drawn from the study can also be useful for city authorities and serve as guidance for updating their strategies and taking a broader look at the competitiveness of the city in view of improving energy efficiency.