Investigating the Impacts of Trade Openness and Energy Consumption on Environmental Quality in Azerbaijan: An Analysis under the Load Capacity Curve Hypothesis
Journal Title: Opportunities and Challenges in Sustainability - Year 2024, Vol 3, Issue 2
Abstract
Utilizing the load capacity curve (LCC) hypothesis within an autoregressive distributed lag (ARDL) model framework, this study investigates the implications of trade openness (TO), renewable energy consumption (REC), and non-REC on environmental quality in Azerbaijan for the period 1996-2022. The LCC hypothesis, which employs the load capacity factor (LCF) as an environmental quality indicator, facilitates a comprehensive evaluation of pollution across air, water, and soil domains. It was found that the LCC hypothesis does not hold for Azerbaijan. Specifically, fossil fuel consumption (FEC) was observed to exacerbate environmental degradation, whereas the influence of REC and TO on the LCF was not statistically significant. These findings suggest that Azerbaijan’s strategy for using renewable energy does not effectively enhance environmental quality. Furthermore, the evidence indicates that economic expansion alone does not suffice to mitigate environmental challenges. To foster sustainable environmental improvement, it is recommended that the Azerbaijani government devises a more robust energy mix strategy that transcends the current reliance on renewable sources and adopts a holistic green growth model for the economy.
Authors and Affiliations
Ugur Korkut Pata, Mustafa Tevfik Kartal
Keywords
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- EP ID EP740736
- DOI https://doi.org/10.56578/ocs030201
- Views 21
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