Preliminary communication
https://doi.org/10.17818/EMIP/2025/44
EXPLORING THE NEXUS BETWEEN EMISSIONS, ECONOMIC GROWTH, AND EMPLOYMENT: EVIDENCE FROM AZERBAIJAN
Latif Zeynalli
; Center for Analysis of Economic Reforms and Communication (CAERC); Azerbaijan State Oil and Industry University, Baku, Azerbaijan
Ramil Huseyn
; Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan
*
Agil Asadov
; Center for Analysis of Economic Reforms and Communication (CAERC), Baku, Azerbaijan
Abdulrahim Dadashov
; Center for Analysis of Economic Reforms and Communication (CAERC), Baku, Azerbaijan
* Corresponding author.
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.
Keywords
Azerbaijan; Green Economy; Employment; Economic Growth; Toda-Yamamoto causality test
Hrčak ID:
347191
URI
Publication date:
15.5.2026.
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