Green Economy and a New Approach to Its Measurement

Abstract

The purpose of the study is to propose a model for a comparative assessment of the degree of «greenness» of the economy of each country, to identify weak determinants to increase the degree of «greenness» of the countries included in this model, as well as to scientifically substantiate possible ways of developing weak determinants. However, approaches to the «green» economy model and the method of its measurement differ. It is more appropriate to include indicators related to the sectors of the economy that generate carbon emissions in this model. The article defines 5 subindexes for quantifying the «green» economy model: growth parameters and socio-economic essence, environmental and resource efficiency, natural resources group, environmental quality measurement group, economic opportunities, and policy group. The results of the study show that over the past 30 years, the sub-index «Ecological quality of life», which is part of the Green Economy Index in Azerbaijan, has significantly decreased. However, as in other oil-rich countries, the main factor preventing the transition to a green economic model in Azerbaijan is related to oil production. As in other countries rich in oil and gas, Azerbaijan’s economy is based on oil and gas rents. The main conclusion obtained during the study is related to the transition of the country’s economy to a «green model», and it is also recommended to replace economic growth with green growth and invest in the development of industries that reduce the number of pollutants released into the environment.