Energy intensity of the economy in the context of rethinking growth within a limited planet

Abstract

Sustainable energy is paramount in advancing initiatives about energy conservation and transitioning towards clean, secure, and efficient energy sources. The research objective is to assess the impact of alterations in energy intensity on the socioeconomic development of a country. The study includes monitoring the prospects of countries in the EECCA (Eastern Europe, Caucasus, and Central Asia) region whose energy markets rely on the traditional model of energy production. The panel data method and empirical estimation for correlation calculations are oriented towards the context of Azerbaijan, a major producer of crude oil and natural gas in the Caspian-Black Sea region. The obtained results have demonstrated that the predominant current trend in most countries of the Caspian-Black Sea region is characterized by intensive growth in energy intensity. It is found that Azerbaijan has one of the highest rates of energy self-sufficiency within the developing energy sector. Furthermore, the renewable energy sector is experiencing a decline, while the proliferation of CO2 emissions is characterized by the presence of eco-social consequences stemming from the activities of the energy sector. Empirically, the correlation between energy intensity and both economic development and sustainable social policies has been proven. It has been determined that Azerbaijan's economic policy is directed towards specific measures aimed at reducing energy intensity, which presents a contradiction for countries in the Caspian-Black Sea region. However, advocating for the attainment of Sustainable Development Goal 7 within the framework of the global economy is a necessary and logical measure for enhancing energy efficiency in the context of sustainable economic development. Practical application of the results can be used in the practice of state management of energy sector development as part of achieving the objectives of the global economy.