Carbon emissions and the ecological-economic transformation of Azerbaijan

Abstract

This study examines the role of environmental factors in the economic transformation of the Republic of Azerbaijan, with particular attention to sustainable development and the transition to a green economy. Carbon emissions, environmental models and the effectiveness of environmental policy instruments were analysed using statistical and comparative methods applied to international databases, within the conceptual framework of the environmental Kuznets curve. The analysis shows that the economy of the country remains highly hydrocarbon- intensive, since it relies on oil and gas exports, which account for approximately 75–80% of total exports. The energy sector accounts for about 70% of total greenhouse gas emissions, with transport, agriculture and waste contributing the remainder. Despite recent reforms and investment in renewable energy, structural environmental challenges persist. The study concludes that a comprehensive transition to green energy, institutional strengthening and the expansion of renewable generation are essential for long-term sustainability.