EMPIRICAL ANALYSIS OF THE IMPACT OF THE GREEN ENERGY TRANSITION ON ECONOMIC DEVELOPMENT PROSPECTS IN THE AZERBAIJANI ECONOMY

Abstract

The international economy has seen enormous changes during the previous several decades. This movement has been driven by environmental concerns, technical improvements and the growing significance of sustainability goals. In this context the transition to cleaner sources of energy has been a key challenge in the developing of economies. This is a strategic need, a tough structural issue for resource-based countries like Azerbaijan. The statistical methods will be used in this study to assess the empirical analysis of the influence of the transition to green energy on the economic growth potential of Azerbaijan.

The study links the concepts of green growth to numbers that use major economic metrics such as GDP, carbon dioxide pollution, use of renewable energy and levels of green investment. You may analyze the relationship between variables and find the short term and the long term effects using a time-series econometric approach that involves the testing of unit root, correlation analysis and multiple regression models.

The rise in expenditure on green and alternative energy has a positive and statistically significant effect on economic growth. Very much the case, the long term. However, our study shows that certain trade-offs are ephemeral, such the short-term adaptations of the traditional energy sector. The results also underline the importance of institutions having the right skills and technology available to continue development and the government’s assistance in the transition to green energy.

The study adds to the current literature by carrying out an actual investigation of a particular country (Azerbaijan) where there is not much quantitative research on this issue. The results are very important for lawmakers, they show how vital it is to make the transition to a cleaner and more diverse economy in a fair and well-informed way.