The impact of carbon pricing on international competitiveness in the case of Azerbaijan

This article examines the impact of carbon pricing on international competitiveness for Azerbaijan, utilizing different cointegration methods such as, ARDLBT, CCR, DOLS, and FMOLS to the data spanning from 2000 to 2019. The results of the various cointegration approaches are in line with each other....

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Bibliographic Details
Published in:Environmental science and pollution research international 2022-05, Vol.29 (22), p.33587-33594
Main Author: Mukhtarov, Shahriyar
Format: Article
Language:English
Subjects:
Aquatic Pollution
Atmospheric Protection/Air Quality Control/Air Pollution
Azerbaijan
Carbon
Carbon dioxide
Carbon Dioxide - analysis
Carbon dioxide emissions
Competitiveness
Costs and Cost Analysis
Crude oil
Crude oil prices
Currency exchange rate
Earth and Environmental Science
Economic Development
Ecotoxicology
Emission measurements
Emissions
Environment
Environmental Chemistry
Environmental Health
Environmental science
Foreign exchange rates
Fossil fuels
Humans
Oil
Petroleum
Pollution effects
Pricing
Renewable Energy
Research Article
Waste Water Technology
Water Management
Water Pollution Control
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Summary:This article examines the impact of carbon pricing on international competitiveness for Azerbaijan, utilizing different cointegration methods such as, ARDLBT, CCR, DOLS, and FMOLS to the data spanning from 2000 to 2019. The results of the various cointegration approaches are in line with each other. The estimation results revealed that domestic crude oil price as a proxy of carbon pricing has a positive and significant impact on the real effective exchange rate in Azerbaijan. This implies that a rise in domestic crude oil price raises the real effective exchange rate (appreciation of national currency). An increase in real effective exchange rate indicates a loss in international competitiveness. The study concludes that the Azerbaijani policymakers should implement carbon pricing measures (implicit) to decrease CO 2  emissions from energy heavy industries without harming the country's international competitiveness, as well as use more renewable energy in order to prevent higher pollution effects of fossil fuels.
ISSN:0944-1344
1614-7499
DOI:10.1007/s11356-022-18606-3