The impact of electricity price on economic inflation in Azerbaijan

Bachelor of Science Gulnisa Nazarova, BS

Diplomová práce

Abstract:

This study delves into the impact of electricity pricing on Azerbaijan's inflation, exploring the relationship between electricity price fluctuations and economic inflation. It aims to investigate the linkage between electricity prices and inflation, identify electricity pricing determinants, assess how electricity price changes affect Azerbaijan's various economic sectors, and analyze government policy's role in electricity pricing and its effects on inflation. The research methodology includes an econometric analysis using the Ordinary Least Squares (OLS) method, focusing on variables like electricity price, interest rate, exchange rate, and GDP to study their impact on inflation. A dual-case study approach enriches this investigation. The first case study examines the direct correlation between electricity prices and inflation, while the second, titled "Assessing the Dynamics of Electricity Pricing in Azerbaijan," explores the broader economic consequences of electricity price variations. It evaluates sectoral impacts, particularly on agriculture and investigates government interventions in electricity pricing, including subsidies and tariffs, to understand their influence on the economy. This research aims to shed light on the complex interplay between electricity pricing, sectoral economic performance, and inflation in Azerbaijan, providing valuable insights for energy sector policymakers and stakeholders.

Keywords

inflation, electricity price, energy consumption, price change, GDP, Azerbaijan

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 4. 4. 2024

Obhajoba závěrečné práce

• Obhajoba proběhla 29. 5. 2024
• Vedoucí: Ing. Ghaeth Fandi, Ph.D.
• Oponent: Soliman Fandie, Ph.D.

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Magisterský studijní program:
Economics and Management