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Abstract This study investigates the macroeconomic effects of adverse oil price shocks on a small oil-exporting economy — the Azerbaijan economy. We estimate a recursive (near) VAR model by using monthly macroeconomic data from 2006 to 2018. The results indicate the Azerbaijan economy is adversely influenced by an oil price decline. Specifically, we find that a negative oil price shock deteriorates trade balance, causes a currency depreciation, increases inflation and falls economic activity. Furthermore, our findings imply that the oil price-led devaluation shapes the inflationary and recessionary consequences of this shock.

AbstractRemittances to the Philippines constitute a prominent part of its economy. However, remittances' effects on its environment have not been researched. In this regard, this research examines the direct and indirect impacts of remittance inflows on the Philippines' environmental sustainability for the 1977–2016 period by proposing a multivariate model, and by utilising the augmented ARDL and VECM methods to estimate this model. Our findings indicate that remittance inflows threaten environmental sustainability in the long‐run both directly and indirectly through boosting income and energy (oil) consumption. The results additionally imply that income and energy consumption also increase the ecological footprint of the Philippines in the long‐run. However, economic globalisation's long‐run impact is insignificant, yet its short‐run impact is significantly negative on the country's level of environmental degradation. Additionally, the findings reveal that the feedback hypothesis is valid between income and energy consumption in the long‐run, but the neutrality hypothesis is valid in the short‐run. This research's findings reveal that remittance inflows' impact on the environment is significant, and can occur through direct and various indirect channels, therefore, these inflows should be an integral part of sustainability policies in the Philippines, as ignoring them could cause further environmental decline.

Sustainable development is one of the issues that many developed and developing countries focus on in the world. The sustainability of human and natural resources is of great importance for securing the world and humanity's common future. In this context, this study aims to evaluate the socio-economic structure of Erzurum with analytical hierarchy process (AHP) and digitized strengths, weaknesses, opportunities and threats analysis considering sustainable development goals (SDGs). The items included in the Agenda 21 report of the United Nations and 17 SDGs determined by the United Nations were taken into consideration in this endeavour. In line with expert opinions, the strengths, weaknesses, opportunities and threats created by the sustainable development goals for Erzurum province were analysed statistically with the AHP. Priority and weighted values of each sub-criterion were calculated. According to this analysis, "the richness of natural, cultural and historical resources for tourism potential" ranks first among the strengths of the province regarding sustainable development goals. Weaknesses include "insufficient investment and entrepreneurial culture". However, "priority region status for development" criterion stands out as the most important opportunity. Threats include "loss of labour force due to migration from agricultural areas" criterion. After the statistical analysis, the quantitative results of made for the best realization of sustainable development for the area were assessed to specify new goals and strategies. Suggestions were offered to define opportunities and strengths, threats and weaknesses with new-build strategies and to make the plans accordingly.

In Turkey, the population living around forest areas is significantly affected by forestry activities. There are 21 thousand forest villages and 7 million forest villagers living in these forest villages within the 22.9 million ha forest area. In other words, one out of every three people living in rural areas is a forest villager. Daily life activities of forest villagers living together with forest areas can cause pressure on forests. GDoFV by various development projects to reduce the impacts of pressures on forest areas of forest villagers have been implemented. This improvement loans are two groups, including for economic and social purposes. GDoFV only makes cost-benefit analysis for social projects. Does not apply any other economic analysis. Water Heating with Solar Energy Systems (Solar Power Plant) project is a project implemented by GDoFV social purposes. The aim of the SPP projects is to reduce the firewood consumption of the forest villagers. This case study aimed to evaluate the economic analysis of SSP projects implemented to reduce the forest villager's consumption of firewood. In the forest villages of the Western Mediterranean Region, 100 forest villages were sampled from 152 forest villages and 629 forest villagers where SPP application was made.

Abstract The transportation sector is one of the main contributors to global greenhouse gas (GHG) emissions. As the efforts towards emission mitigation increase, the expectation from the sector arises equally. In this analysis, the transportation sector of Turkey is studied to shed light on the future based on historical realizations. In this respect, the Logarithmic Mean Divisia Index (LMDI) method is used to assess and reveal the influential factors on CO2 emissions in the sector between 2000 and 2017. The emission intensity of the sector and fuel switching shows promising trends from 2000 through 2010, whereas growing preference for SUVs challenges emission reductions between 2010 and 2017. The results indicate that i) The transportation sector CO2 emissions are mainly driven upwards by economic growth, followed by population and emission intensity effects from 2000 to 2017 ii) The overall impact of transportation intensity shows significant reduction potential iii) Fuel switching incentives and fleet efficiency have a positive effect on emission mitigation from 2000 through 2010. However, this gain is reduced due to the rising popularity of SUVs in the rest of the analysis period. In this respect, CO2 emission mitigation in the transportation sector necessitates 1) careful planning of demand management for freight transportation including master designs production/manufacturing sites, material flows, and demand points coupled with economic activities 2) passenger transportation measures to reduce passenger car travel including zoning for public transit corridors, improved public transportation system 3) well-structured incentives on energy-efficient cars and clean energy technologies such as electric vehicles to convince individuals. Analysis can be generalized on a global scale due to the similar dynamics inherent in the sector.

Abstract The financial system needs to develop in order for natural resource exports to have a positive effect on economic growth. Yet, an advanced financial system is crucial for transferring the revenues from oil exports to productive investments. If the level of development of the financial system remains under a certain threshold, the effect of natural resource exports on economic growth is too low. In this vein, the determination of the level and the deepness of financial development that has a positive impact on the growth of natural resource exports should be clarified. The aim of this study is to investigate the relationship between the impact of natural resource exports on economic growth and the level of financial deepening by using the data of the selected Next-11 countries for the period of 1996–2016. Nonlinear panel data methodology is used in the study. Based on the empirical results, for the first regime, where the rate of financial deepening is under 45%, the increase in oil exports does not have a statistically significant effect on ecenomic growth. For the second regime, where financial deepening is over 45%, one unit increase in oil exports causes a 7% increase in economic growth.

This study investigates the validity of the EKC (environmental Kuznets curve) hypothesis for the 50 US states and a Federal District (Washington, D.C.). To this aim, the common correlated effects (CCE) and the augmented mean group (AMG) estimation procedures are applied between 1980 and 2015. While the CCE estimation does not support EKC hypothesis, the AMG does. The empirical findings of the AMG estimation indicate that only 14 states verify the EKC hypothesis. Additionally, the expected negative impacts of fossil energy consumption on the environment (CO2 emissions) are strongly detected in all states except Texas. However, the expected positive impacts of renewable energy consumption on the CO2 emissions are detected only in 13 states. Furthermore, the expected negative impacts of the population are not detected in some mostly populated states like New York, Texas, and Ohio. The overall findings of this study may help the US state-level policy makers in two ways: first, to understand whether their economic growths are sustainable (eco-friendly); second, to see how their fossil and renewable energy consumptions affect their environments and to review their energy policies.

Energy justice is violated when particular customers and locations are excluded from a variety of urban energy service distribution. This study explores energy justice in terms of natural gas distribution by providing empirical evidence from 356 neighborhoods of Izmir Metropolitan Area (IMA). The aim is to reveal driving factors of natural gas investment and the spatial reflections of the relationships between investment, and socio-economic and physical characteristics. A global regression model, OLS, and two local spatial regression models, GWR and MGWR, are conducted. Population, income, employment and disadvantaged areas are the significant determinants of natural gas investments. Due to the presence of spatial autocorrelation in OLS residuals, GWR and MGWR are utilized to account for spatial variation in the response variable. Local models are superior to the global model according to AICc values, which are 607.3, 586.7, and 558.5, in OLS, GWR, and MGWR, respectively. MGWR further improves the overall fit with higher R-sq and lower AICc values. The local R-sq values indicate at least 70% variability is explained in 85% of the study area in MGWR, and in 73% of IMA in GWR. Parameters are slightly overestimated in GWR at the mean level. None of the local models are subject to multicollinearity according to local condition numbers, but local variance decomposition proportions indicate the effects of multicollinearity in some observations. Spatial modeling of investments helps to demonstrate local variations of energy injustice and to develop site-specific policies. Population and employment are related to potential customers, which lead to higher investments. Income depends on purchasing power, and there are economic barriers that need to be regulated through subsidies and incentives for the low-income households. Awareness raising policies can also be developed to better inform households about energy alternatives. Disadvantaged areas, either declared as urban transformation areas or currently under urban transformation, lack the natural gas service in general, while the investments can be considered in those areas along with the new development plans.

Economic development is characterised by natural resource extraction and consumption. However, due to the finite nature of fossil fuel energy sources and its price shocks, an investigation into its historical fluctuations is essential for energy policy formulation. Against the backdrop, this paper examines the stationary properties of coal, oil and natural gas consumption per capita of 16 Organisation for Economic Co-operation and Development (OECD) countries for the period 1970-2018. The study employs Fourier ADF and Fourier KSS unit root tests for linear and nonlinear series to assess the permanent or transitory shocks in coal, oil, and natural gas consumption. Empirical findings show that coal consumption is stationary for 6 of 16 countries. In contrast, oil consumption is found stationary for 4 of 16 countries while natural gas consumption is found stationary for 5 of 16 countries. These results demonstrate that any shock in oil, coal, and natural gas consumption will be permanent in most of the OECD countries. Thus, finding fossil fuel alternatives like renewable energy sources which are localized rather than internationally tradable, lessens the reliance on fossil fuel imports and the negative impacts of price shocks.