Abstract
In the study, Azerbaijan from countries considered as a special example in transition economies was discussed. Changes in urbanization and the environment in Azerbaijan have been studied. However, there have been difficulties in obtaining access to accurate information about the period of the Union of Soviet Socialist Republics. In this direction, the post-Cold War period is examined. Firstly, we focused on the concept of transition economy, and this section also discussed the relationship between urbanization and the environment. After that, the transition economy process of Azerbaijan was included and the impact of the process of urbanization with foreign trade on the environment was focused. In particular, it has been found that water pollution and oil extraction have consequences (Caspian Sea), and from year to year, it has been observed that steps on a sustainable environment are more robust. The aim of the study is to show the interaction of urbanization and environmental phenomena with each other through case studies and to examine the example of Azerbaijan, which is rich in raw materials with transition economy. The hypothesis of the study is that “environmental problems have increased with urbanization in Azerbaijan, which is a transitional economy.” The study was created by conducting a literature review and also used data from official sources.