The improvement of the economic efficiency of agriculture in the Republic of Azerbaijan, known as an agro-industrial country, directly depends on the intensification of production. As in other sectors, agricultural production intensification raises concerns regarding environmental issues. Specifically, the negative impact of intensive land and water use in the republic highlights the importance of environmental regulation.
An analysis shows that while the need for harmonizing economic and environmental interests at the macro level is recognized, the alignment of these interests at the enterprise and activity levels remains unsatisfactory. In other words, agricultural producers, when using intensive methods, are often forced to accept environmental demands. As a result, the restrictive conditions imposed by environmental assessments of intensive technologies act as a factor slowing economic growth.
Environmental restrictions on the use of natural resources lead to reduced profits for individual producers. Therefore, when analyzing the causes of environmental problems, in addition to market failures, there is a need to assess the regulatory measures implemented by the state. Thus, without diminishing the significance of the efforts being undertaken in Azerbaijan, it should be noted that for more active participation of independent entities (non-governmental organizations, public associations) in evaluating the current and future results of such efforts, projects related to the development of the agricultural sector should be subject to monitoring.
Since agriculture is highly dependent on natural and climatic conditions, the lack of environmental oversight in resource use exacerbates negative impacts on this sector. As energy consumption, application of mineral fertilizers, and the use of chemicals on a unit area of soil increase, so does the likelihood of environmental degradation in agriculture. However, the notion that intensification is inherently anti-ecological is also, in our view, incorrect. The serious negative effects of extensive development on the environment are no longer a matter of debate. The introduction of intensive agro-technologies in crop and livestock production reduces their dependence on natural and climatic conditions, as scientific advances mitigate seasonality, allowing part of the profits gained through intensification to be directed toward environmental protection.
It is known that one of the functions of modern agriculture is active participation in environmental protection. Acting in harmony with flora and fauna, agriculture has significant potential to neutralize the negative impact of industry and address environmental issues in large cities. Although at first glance, the environmental protection function appears to contradict the primary function of agricultural development, in reality, they are closely related, encompassing issues of buffering agricultural landscapes, the state of the natural environment, living organisms, forests, and soil cover.
Research shows that environmental protection involves not only the preservation of natural landscapes but also the rational use of lands under agricultural circulation, restoration of lost landscapes, application of waste-free technologies, and prevention of soil and water pollution. These measures are currently being implemented based on the concept of a "green economy."
The term "green economy" was introduced into the scientific lexicon in 1989 by a group of leading economists in a report prepared for the government of the United Kingdom (Pearce, D. Blueprint for a Green Economy / D. Pearce, A. Markandya, E. Barbier. London: Earthscan Publications Ltd., 1989. 192 p.). During the global financial and economic crisis of 2008-2009, this concept was increasingly adopted within the UN system. As a result, the 2009 UNEP Green Economy Report laid the foundation for its development. Since 2012, this topic has become the subject of intense discussion at major international events such as the G20 summits. Documents adopted by international organizations with broad representation acknowledge that building the necessary economic and other capacities, sharing information, and exchanging experiences will be crucial for the successful implementation of a green development strategy.
Efforts to institutionalize the development of the green economy and build its scientific foundation are ongoing. The Green Economy Coalition, the Stakeholder Forum, and the Green Development Institute are actively involved in creating a scientific basis for and popularizing knowledge on the subject. At the same time, the articulation and harmonization of conceptual approaches are constantly in focus. Compliance with green criteria is regarded as a decisive factor for the stable and sustainable development of national and global economies. On the other hand, when viewed as an effective and important tool for achieving sustainable development, the green economy criteria are seen as enhancing the ability to promote economic growth, employment, and poverty reduction by ensuring inclusive development and the harmonious functioning of global ecosystems.
The program "Azerbaijan 2030: National Priorities for Social and Economic Development," approved by the President of Azerbaijan, Ilham Aliyev, names the fifth priority as "A clean environment and green growth country." The document sets specific goals for the introduction of environmentally friendly technologies, the promotion of waste processing, the restoration of contaminated lands, and the expansion of the application of ecologically favorable "green" technologies.
In the transition period, especially in the early stages, the growth of agricultural production occurs largely due to extensive factors. While the influence of these factors in crop production is limited by the overall area of agricultural land, livestock production is less restricted, often exceeding ecological limits. Consequently, extensive livestock farming has become a serious problem for flora and fauna. Today, extensive livestock production poses significant environmental challenges in rural areas.
It is also known that environmental requirements for intensification, when accepted unequivocally in the context of strengthening the legal and organizational framework for environmental management, create a favorable environment for improving the efficiency of farming in a broad sense.
In the new century, a new eco-social environment is being formed, and the reserves for accompanying this process through the active participation of all civil society institutions are growing. The fact that agricultural producers adopt a position of adaptation to nature is, from an economic standpoint, not yet justified. Promoting adaptive activities toward nature highlights the environmental aspects of agricultural intensification. In other words, the negative consequences of transforming relationships with natural resources require a cautious approach to energy-intensive technologies. Although these requirements have not yet had a decisive influence in the economic realm, the consequences of the environmental crisis are stimulating the growth of advocates for ecological balance.
The primary reason for this is the relevance of environmental protection, which is a global issue for all of humanity. Sustainable development cannot be achieved solely within national economies; global efforts and resources, including intellectual ones, are required.
Another less obvious reason for the increased attention to environmental regulation of economic activities in transition economies is the growing demands for managing the competitiveness of products produced in these countries. Efforts in this area prioritize ecological purity as an additional requirement for food export control carried out by international organizations, non-governmental organizations, and other entities. This approach allows domestic agricultural organizations to enter the global market with products that meet international standards while simultaneously increasing production costs.
Increased agricultural intensification leads to greater anthropogenic pressure on the environment, which, in turn, increases the likelihood of reduced production volumes, profitability, and accelerated depreciation of fixed assets.
Thus, the intensive development of the agricultural sector requires comprehensive research, with special attention given to environmental issues.
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