Diversification Rate of Energy Balance and Energy Export Demand Risk Impacts on Economic Growth: The Case of Azerbaijan
Keywords:
energy balance, renewable energy sources, energy security, risk of demand for energy exports, Azerbaijan
Abstract
The objective of the article was to examine the level of diversification of the energy balance and energy export demand, as well as its impacts on economic growth to ensure energy security in Azerbaijan. Forthe research, the Risk Energy Export Demand Index and its four sub-indexes, i.e.,1) export dependence, were used; 2) risk of monopsonium; (3) the risk of transaction costs; 4) Comparative quantitative assessment of the economic importance of different types of energy in the country's energy exports. The Herfindahl-Hirschman index and the Shannon-Wiener index were used for the assessment of the diversification and concentration rate. The OLS method, the ADF test and cointegration were used to assess the relationship between indicators. It is concluded that the share ofenergy obtained from renewable sources in the country's energy balance is very low (about 3%), and the energy obtained from these sources is mainly used for electricity production. Since an essential part of the country's energy balance is in hydrocarbon reserves, the level of diversification is low.
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References
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AL-MONEEF, Majid. 2006. The Contribution of the Oil Sector to Arab Economic Development. Roundtable. Available online. In: http://www.adelinotorres.info/mediooriente/arabes_petroleo_e_desenvolvimento_dos_paises_arabes.pdf. Consultation date: 26/12/2019.
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APERC. 2019. Asia Pacific Energy Research Centre. Available online. In: https://aperc.or.jp/. Consultation date: 26/12/2019.
APERGIS, Nicholas; AYE, Goodness; BARROS, Carlos; GUPTA, Rangan; WANKE, Peter. 2015. “Energy efficiency of selected OECD countries: a slacks-based model with undesirable outputs” In: Energy Econ. Available online. In: https://doi.org/10.1016/j.eneco.2015.05.022. Consultation date: 26/12/2019.
BALITSKIY, Sergey; BILAN, Yuriy; STRIELKOWSKI, Wadim. 2014. “Energy security and economic growth in the European union” In: Journal of Security and Sustainability. Issues 4, No. 2, pp. 123-130.
BANDURA, Romina. 2008. A Survey of Composite Indices Measuring Country Performance: 2008 Update. United Nations Development Programme, Office of Development Studies (UNDP/ODS Working Paper). New York, USA.
CHERP, Aleh. 2012. Global Energy Assessment-Toward a Sustainable Future. Cambridge University Press and the International Institute for Applied Systems Analysis. Cambridge, UK, Laxenburg, Austria.
CODONI, Rene; PARK, Hi-Chun, RAMANI, KV (eds). 1985. Integrated energy planning: a manual. Asian and Pacific Development Centre. Kuala Lumpur, Malaysia.
COSTANTINI, Valeria; GRACCEVA, Francesco; MARKANDYA, Anil; VICINI, Giorgio. 2007. “Security of energy supply: Comparing scenarios from a European perspective” In: Energy Policy. Vol. 35, Issue 1, pp. 210-226.
DAVIDSON, Russell; MACKINNON, James G. 1993. Estimation and İnference in Econometrics. Oxford University Press. New York, USA. p. 708.
DIKE, Jude Chukwudi. 2013. “Measuring the security of energy exports demand in OPEC economies” In: Energy Policy. Vol 60, pp. 594-600.
DREGER, Christian; RAHMANI, Teymur. 2014. The Impact of Oil Revenues on the Iranian Economy and the Gulf States, IZA Discussion Papers, No. 8079, Institute for the Study of Labor (IZA). Bonn, Germany.
ERAHMAN, Qodri Febrilian; PURWANTO, Widodo Wahyu; SUDIBANDRIYO, Mahmud; HIDAYATNO, Akhmad. 2016. “An assessment of Indonesia’s energy security index and comparison with seventy countries” In: Energy. Available online. In: https://doi.org/10.1016/j.energy.2016.05.100. Consultation date: 26/12/2019.
GASSER, Patrick. 2020. “A review on energy security indices to compare country performances” In: Energy Policy. Vol. 139. Pp. 111-339.
GULALIYEV, Mayis. G; MUSTAFAYEV, Elchin. R; MEHDIYEVA, Gulsura. Y. 2020a. “Assessment of Solar Energy Potential and Its Ecological-Economic Efficiency: Azerbaijan Case” In: Sustainability. Available online. In: https://doi.org/10.3390/su12031116. Consultation date: 05/05/2020.
GULALIYEV, Mayis; YUZBASHIYEVA, Gulsen; MAMEDOVA, Gulnara; ABASOVA, Samira; SALAHOV, Fariz; ASKEROV, Ramil. 2020b. “Consumer Surplus Changing in the Transition from State Natural Monopoly to the Competitive Market in the Electricity Sector in the Developing Countries: Azerbaijan Case” In: International Journal of Energy Economics and Policy. Vol 10, No 2, pp. 265-275.
HASSAN, Khalid; ABDULLAH, Azrai. 2014. Effect of Oil Revenue and the Sudan Economy: Econometric Model for Services Sector GDP. Global Conference on Business & Social Science-2014, GCBSS-2014, 15th & 16th December. Kuala Lumpur, Malaysia.
HEIDARIAN, Jamshid; GREEN, Rodney D. 1989. “The impact of oil-export dependency on a developing country the case of Algeria” In: Energy Economics. Vol. 11, Issue 4, pp. 247-261.
HUGHES, Llewelyn; PHILLIP, Y. Lipscy. 2006. “The politics of energy” In: Ann. Rev. Political Sci. Vol 16. Pp. 449-469.
HUMBATOVA, Sugra Ingilab; HAJIYEV, Natig Qadim-Oglu. 2019. Oil Factor in Economic Development. Energies. Available online. In: https://doi.org/10.3390/en12081573. Consultation date: 05/05/2020.
IEA. 2004. “Energy statistics manual” In: International Energy Agency. Paris, France.
IEA. 2007. Climate Policy and Energy Security. Available online. In: https://www.iea.org/reports/energy-security-and-climate-policy. Consultation date: 19/12/2019.
MAHMOOD, Tahir; AYAZ, Muhammed Tayyab. 2018. “Energy security and economic growth in Pakistan” In: Pakistan Journal of Applied Economics. Vol 28 No.1, pp. 47-64.
MUÑOZ, Beatriz; GARCÍA-VERDUGO, Javier; SAN-MARTÍN, Enrique. 2015. “Quantifying the geopolitical dimension of energy risks: A tool for energy modelling and planning” In: Energy. Vol 82, pp. 479-500.
OLAYUNGBO, D. Oluseun; ADEDIRAN, Kazeem A. 2017. “Effects of Oil Revenue and Institutional Quality on Economic Growth with an ARDL Approach” In: Energy and Policy Research. Available online. In: https://doi.org/10.1080/23815639.2017.1307146. Consultation date: 19/12/2019.
SOVACOOL, Benjamin K; MUKHERJEE, Ishani. 2011. “Conceptualizing and measuring energy security: A synthesized approach” In: Energy. Vol. 36, No. 8, pp. 5343-5355.
SSCRA. 2020. Available online. In: https://www.stat.gov.az/source/balance_fuel/. Consultation date: 19/08/2020.
STIRLING, Andy. 1998. On the Economics and Analysis of Diversity. SPRU Electronic Working Paper Series. Paper No. 28.
STIRLING, Andy. 2009. “Multicriteria diversity analysis: A novel heuristic framework for appraising energy portfolios” Available online. In: https://doi.org/10.1016/j.enpol.2009.02.023. Consultation date: 19/12/2019.
TURTON, Hal; BARRETO, Leonardo. 2006. “Long-term security of energy supply and climate change” In: Energy Policy. Volume 34, Issue 15, pp. 2232-2250.
UN. 1982. Concepts and methods in energy statistics, with special reference to energy accounts and balances: a technical report. Series F No. 29, Department of International Economic and Social Affairs. Available online. In: https://unstats.un.org/unsd/publication/SeriesF/SeriesF_29E.pdf. Consultation date: 19/12/2019.
VALDÉS, Javier. 2018. “Arbitrariness in Multidimensional Energy Security Indicators” In: Ecological Economics. Available online. In: https://doi.org/10.1016/j.ecolecon.2017.09.002. Consultation date: 19/12/2019.
WB. 2020. World Bank Open data. Available online. In: https://data.worldbank.org. Consultation date: 19/12/2019.
WEC. 2019. World Energy Council. Available online. In: https://trilemma.worldenergy.org. Consultation date: 19/12/2019.
YERGIN, Daniel. 1988. “Energy security in the 1990s” In: Council on Foreign Relations. Vol. 67, No. 1, pp. 110-132.
Published
2021-03-07
How to Cite
Bayramov, S. V., Mehdiyeva, G. Y., Eyvazov, A. A., & Mustafayev, E. R. (2021). Diversification Rate of Energy Balance and Energy Export Demand Risk Impacts on Economic Growth: The Case of Azerbaijan. Political Questions, 39(68), 290-314. Retrieved from https://produccioncientificaluz.org/index.php/cuestiones/article/view/35681
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Ciencia Política
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