PESTEL ANALYSIS FOR GEOTHERMAL BUSINESS IN AZERBAIJAN.

Running head: PESTEL ANALYSIS FOR GEOTHERMAL BUSINESS IN AZERBAIJAN
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PESTEL Analysis for Geothermal Energy Business in Azerbaijan
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PESTEL ANALYSIS FOR GEOTHERMAL BUSINESS IN AZERBAIJAN
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Executive summary
The report presents a comprehensive PESTEL analysis for a geothermal business in
Azerbaijan. The purpose of the analysis is to determine if setting up a geothermal business in the
country will be feasible. It uses annual trends and history of the country and its implications to
the business to determine if the business is suitable. When evaluating political factors much
concentration is on political stability and corruption level of the country. Economic factors
considered which can affect the business include demographic factors, inflation, and
employment rates. Social factors that will affect the business are education level, social crimes,
and consumer culture.
Analysis of technological factors includes technology development, communication
systems, electric systems, and transportation. Environmental factors that may affect the business
include land boundaries, terrain, location, deforestation, soil degradation, air pollution, solid
waste pollution, water pollution, and climate. Legal factors considered are labor regulations, tax
and tariffs, and environmental protection laws. Most of the variables such as political stability,
low unemployment rate, improved customer demographics, developed consumer culture, low
social crimes, developed consumer culture, developed technology, and electric systems,
favorable land boundaries and location, suitable climate, deforestation, and incentives on tax and
tariffs.

PESTEL ANALYSIS FOR GEOTHERMAL BUSINESS IN AZERBAIJAN
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Table of contents
Executive summary..............................................................................................................2
Table of contents.......................................................................................................3
Introduction .........................................................................................................5
1.0 Political factors..........................................................................................................5
1.1 Political stability ......................................................................................5
1.2 Corruption levels .....................................................................................6
2.0 Economic factors .............................................................................................6
2.1 Inflation rates..........................................................................................6
2.2 Unemployment rate ..................................................................................7
2.3 Demographic factors .................................................................................7
3.0 Social factors...................................................................................................7
4.0 Technological factors.........................................................................................8
4.1 Technological development.........................................................................8
4.2 Transportation systems...............................................................................9
4.3 Electric systems.......................................................................................9
4.4 Communication systems............................................................................9
5.0 Environmental factors .....................................................................................10
5.1 Deforestation .......................................................................................10
5.2 Air, solid waste and water pollution ...........................................................10
5.3 Soil degradation....................................................................................10
5.4 Climate and terrain................................................................................11
5.5 Land boundaries and location...................................................................11
6.0 Legal factors................................................................................................11

PESTEL ANALYSIS FOR GEOTHERMAL BUSINESS IN AZERBAIJAN
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6.1 Tax and tariffs..................................................................................12
6.2 Environmental protection laws...............................................................12
6.3 Labor regulations...............................................................................12
Recommendations and conclusion..................................................................12
References................................................................................................14
Appendices................................................................................................16