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Econometric Analysis of the Relationship between Renewable Energy Production, Traditional Energy Production and Unemployment: The Case of Azerbaijan

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  • Bahman Huseynli

    (Lecturer, Azerbaijan State University of Economics (UNEC), Azerbaijan, Baku, Azerbaijan; PhD candidate Marmara University, Istanbul, Turkey,)

  • Nigar Huseynli

    (Lecturer, Azerbaijan State University of Economics (UNEC), Azerbaijan, Baku, Azerbaijan; PhD candidate Sakarya University, Sakarya, Turkey.)

Abstract

The aim of this study is to determine the relationship between Azerbaijan`s traditional energy production, renewable energy production and unemployment rates. While performing the analysis, it was first tested whether the data were stationary or not. The data were stabilized by using the Augmented Dickey Fuller test (ADF). After making the data stationary, the VAR model was established, and appropriate lag lengths were determined. The relationship between the data was analyzed by using the Granger Causality test at the end. Finally, the direction and strength of the relationship between the variables were tried to be determined by making correlation analysis between the variables. According to the results of the Granger analysis, a causal relationship was found between unemployment and renewable energy production, and between renewable energy production and traditional energy production based on 2005-2015 data in Azerbaijan.

Suggested Citation

  • Bahman Huseynli & Nigar Huseynli, 2022. "Econometric Analysis of the Relationship between Renewable Energy Production, Traditional Energy Production and Unemployment: The Case of Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 379-384, July.
    • Handle: RePEc:eco:journ2:2022-04-40
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    References listed on IDEAS

    as
    1. Bergmann, Ariel & Colombo, Sergio & Hanley, Nick, 2008. "Rural versus urban preferences for renewable energy developments," Ecological Economics, Elsevier, vol. 65(3), pages 616-625, April.
    2. Apergis, Nicholas & Payne, James E., 2010. "Renewable energy consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(1), pages 656-660, January.
    3. Daniel Ştefan Armeanu & Georgeta Vintilă & Ştefan Cristian Gherghina, 2017. "Does Renewable Energy Drive Sustainable Economic Growth? Multivariate Panel Data Evidence for EU-28 Countries," Energies, MDPI, vol. 10(3), pages 1-21, March.
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    Cited by:

    1. Teymur Sarkhanov & Nigar Huseynli, 2022. "Econometric Analysis of Renewable Energy Consumption and Economic Growth: The Case of Kazakhstan and Kyrgyzstan," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 163-167, November.
    2. Bahman Huseynli, 2023. "Renewable Solar Energy Resources Potential and Strategy in Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 31-38, January.
    3. Bahman Huseynli, 2024. "Coal Energy in Energy Consumption: An Empirical Analysis in the Case of Russia and Türkiye," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 541-548, May.

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    More about this item

    Keywords

    Energy; Renewable energy; Traditional energy; Unemployment; Economy; Azerbaijan;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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