EXPLORING THE NEXUS BETWEEN EMISSIONS, ECONOMIC GROWTH, AND EMPLOYMENT: EVIDENCE FROM AZERBAIJAN ISTRAŽIVANJE POVEZANOSTI IZMEĐU EMISIJA, GOSPODARSKOG RASTA I ZAPOSLENOSTI: DOKAZI IZ AZERBAJDŽANA
Economic Thought and Practice, vol.35, no.1, pp.277-298, 2026 (ESCI, Scopus)
- Publication Type: Article / Article
- Volume: 35 Issue: 1
- Publication Date: 2026
- Doi Number: 10.17818/emip/2025/44
- Journal Name: Economic Thought and Practice
- Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus, ABI/INFORM, EconLit, Directory of Open Access Journals, East & Central Europe Database (ProQuest)
- Page Numbers: pp.277-298
- Keywords: Azerbaijan, Economic Growth, Employment, Green Economy, Toda-Yamamoto causality test
- Azerbaijan State University of Economics (UNEC) Affiliated: Yes
Abstract
This paper explores the dynamic relationship between Azerbaijan’s green economy and employment by analyzing GDP per capita, CO₂ emissions, and employment rates using the Toda-Yamamoto causality method on annual data from 1990 to 2023. The empirical results reveal two key findings: (1) a statistically significant bidirectional causality between the employment rate and GDP per capita, indicating mutual reinforcement between economic growth and labor market performance; and (2) a statistically significant unidirectional causality from CO₂ emissions per capita to employment at the 1% significance level, underscoring the role of environmental factors in shaping employment dynamics. Our findings reveal a unidirectional positive relationship between CO₂ emissions and employment, suggesting that increased emissions are associated with rising employment levels. This paper contributes by providing the first time-series evidence from Azerbaijan on the causal links between CO₂ emissions, GDP per capita, and employment, using the Toda-Yamamoto approach.