Economy-wide and environmental benefits of green energy development in oil-rich countries: Evidence from Azerbaijan

Vusal Gasimli, Ramil Huseyn and Huseynov Rashad

Economic Annals, 2024, vol. 69, issue 241, 41 - 64

Abstract: Azerbaijan, which is an oil/ gas-rich country, has been taking full advantage of its energy potential and taking steps towards creating green energy and turning it into an export. The Green Energy Corridor, in which Azerbaijan plays the main role, aims to connect Azerbaijan with Europe in its first stage. In the second stage, this corridor will connect Central Asia with Europe, which will involve the laying of an electric cable under the Black Sea and the Caspian Sea. This will allow Azerbaijan and other Central Asian countries to export zero-carbon electricity to the European market. If Azerbaijan is successful in this field, it will not only serve the sustainability of the country’s economy in the post-oil era, but will also contribute to the reduction in carbon emissions, leading to global benefits. The aim of this article is to assess the socioeconomic, ecological, and political benefits of green energy deployment in Azerbaijan. An economic cost-effectiveness analysis was conducted for selected green energy projects (large-scale wind and solar power plants). We also argue that green transition projects, which seem expensive and difficult to realise today, will be justified in the near future.

Keywords: green energy; Caspian Sea; wind energy; export of green energy; cost effectiveness analysis (search for similar items in EconPapers)
JEL-codes: Q42 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ekof.bg.ac.rs/wp-content/uploads/2015/12/241-02.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:beo:journl:v:69:y:2024:i:241:p:41-64

Ordering information: This journal article can be ordered from
http://ea.ekof.bg.ac.rs/

Access Statistics for this article

Economic Annals is currently edited by Will Bartlett

More articles in Economic Annals from Faculty of Economics and Business, University of Belgrade Contact information at EDIRC.
Bibliographic data for series maintained by Goran Petrić ().