Fuzzy Estimation Of National Green Economy Index And Investments Distribution

Green Economy is one of the most important criteria of sustainable development of the country. UNEP defines green economy as “one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. It is low carbon, resource efficient, and socially inclusive”. The concept of green economy has to replace brown economy as world economic development progresses. Decades of creating new wealth through the ‘brown economy’ model is based on fossil fuels having not substantiality addressed social marginalization environmental degradation and resource depletion. In addition to this, world is still far from delivering on the Millennium Development Goals by 2015. United Nation Department of Economic and Social Affairs, having analyzed over 80 publications on the green economy and green growth concepts, offers economic, social and ecological indicators to measure level of green economy development. Also, it is suggests to use Global Green Economy Index – GGEI and NASDAQ OMX Green Economy Benchmark Index (QGREEN) for to estimation of level of Green Economy. GGEI is estimated using following indicators: Clean energy technology, Sustainable forms tourism and Improved domestic environmental quality. QGREEN includes following – Energy efficiency, Clean fuels, Renewable energy generation, Natural resources, Water, Pollution mitigation and Advanced materials. The green economy will emerge in different forms in different regions, depending on local economic strengths and weaknesses. This paper proposes National Green Economy Index (NGEI) to define level of development of green economy in Azerbaijan. To meet this objective we use following eleven indicators: Ecological quality – ECQ, Renewable energy – REE, Protection land – PRL, Green tourism – TOR, Quality of life – QOL, Green GDP- EPP, Energy intensity - ENI, Organic agriculture – ORA, Worldwide governance index – WGI, International Innovation Index - III, Transport greenhouse gas emissions per capita - GHG. Research that has been undertaken, using fuzzy logic methods, on the National Green Economy Development Index for Azerbaijan, shows, that very low value of this index is primarily influenced by the very low level of renewable energy use, low levels of protected land, green tourism and ecological quality in Azerbaijan. Problem of distribution between sectors of Green Economy has to be researched in order to improve this situation in the future.