Rena Huseynova

Climate change is an increasingly important source of financial risk for banking systems. This study analyzes how climate vulnerability influences banking sector risk across 31 developed and developing countries over 2008–2023. Using ND-GAIN–based measures and fixed-effects panel regressions, it examines impacts on non-performing loans (NPLs), Z-scores, and capital adequacy ratios (CAR). The results reveal a significant relationship between climate vulnerability and loan portfolio quality, with effects on NPLs that differ from standard theoretical expectations, while impacts on overall stability and capital adequacy are weak or insignificant. These findings suggest that institutional factors, credit allocation strategies, and bank adaptation shape the climate–risk link. Overall, asset quality emerges as the main channel through which climate vulnerability affects banking risk, highlighting the importance of integrating climate considerations into credit risk assessment and supervision.

In light of recent developments in energy security and energy transition, this study examines the effects of disaggregated energy security risk (ESR) on the energy transition index (ETI). Economic ESR reduces ETI, while environmental ESR increases it. Geopolitical and reliability ESRs have no significant impact on ETI. Additionally, the marginal effects of these variables differ across percentiles. Therefore, the study uncovers both average and percentile-based variations in the marginal effects of ESR on ETI.

Europe’s decarbonization calls for an increase in the resources used to ensure a fairer transition. The objective of this study is to evaluate the role of public finance in the decarbonization process, considering the context of various uncertainties. Data from 1995 to 2023 for selected European countries were analyzed in this sense. We used the cross-sectional dependence–consistent Driscoll–Kraay estimator as the main econometric approach and Feasible Generalized Least Squares (FGLS) as a robustness test. The results revealed a positive impact of public debt, world uncertainty, and gross domestic product on renewable energy usage in European countries. Additionally, general fiscal pressure is shown to have a negative impact on the renewable energy used during the analyzed period. The results showcase the importance of public finance tools adjustments in supporting the race to zero breakthroughs and dawdling climate change. Several policy recommendations were made in this regard.

Recently, sustainability has become a topmost priority agenda for policy analysts, and the globe has compelled all stakeholders to work jointly on sustainability issues. The present study focuses on circular economy (energy recovery from wastage), recycling technology, economic complexity index, urban population, green energy, and green finance as environmental determinants for 10 selected OECD economies covering the period of 2011-2022. In order to investigate the study's objective, it utilizes the fully modified ordinary least square (FMOLS), dynamic ordinary least square (DOLS), and instrumental variables two-stages least square (IV-2SLS). Resultantly, outcomes show a decline in emissions except for the economic complexity index. Moreover, the mediating effect of green finance on green energy shows a positive and significant role in deteriorating sustainability. Besides, the mediating effect of green finance on recycling technology & circular economy brings a negative but insignificant association with emissions level. Green implications are suggested to be cleaned shortly.

This study analyzes the current state and prospects for the development of the circular economy in Azerbaijan. The findings indicate that the absence of a comprehensive legislative framework hinders the establishment of a closed-loop resource utilization system, while the existing fragmented regulations reduce the effectiveness of implementing environmentally sustainable solutions. A key aspect of transitioning to a circular model is fostering partnerships between enterprises, including the creation of industrial symbioses, where the waste of one company serves as raw material for another. Government support for such initiatives, along with the reform of public procurement systems incorporating environmental criteria, can encourage businesses to adopt secondary resources and energy-efficient technologies. The implementation of a comprehensive approach, the promotion of innovative solutions, and economic support measures will establish a solid foundation for Azerbaijan's successful transition to a circular economy.

The study is dedicated to analyzing the current state of municipalities and local self-government bodies, their role within the system of public administration, as well as identifying the challenges and prospects for their development in the context of Azerbaijan. The research examines the specific features of interaction between state authorities and local self-governance institutions, including mechanisms for regulating powers, resource allocation, and the principles of subsidiarity. Particular attention is given to the legal framework, institutional stability, and the impact of state policy on the efficiency of municipal governance. The analysis has revealed shortcomings in legislative regulation, including unclear delineation of functions, the absence of accountability mechanisms, and limited opportunities for judicial protection. The study emphasizes the importance of financial and personnel stability for municipalities, the need to enhance the professional competence of municipal employees, and the active engagement of the population in local governance processes.