Analysis of the Impact of Carbon Footprint on Economic Growth in Azerbaijan

The rise in energy use and industrial activities emitting CO2 has become a major environmental concern globally. This study examines Azerbaijan’s current efforts in reducing carbon emissions and promoting sustainable development, offering strategic recommendations for managing the country's carbon footprint. The goal is to help shape more effective policies by analyzing the link between economic activity and environmental impact. Using an econometric model covering the period from 1990 to 2023, the research finds that economic growth in Azerbaijan is associated with an increase in per capita CO2 emissions, driven by heightened industrial output, energy demand, and other economic factors. Additionally, a long-term positive relationship between population growth and emissions per capita highlights growing energy needs, consumer demand, and transportation usage. Given the strong connection between economic expansion and emissions, the findings suggest that it may be too early to confirm the applicability of the Environmental Kuznets Curve in the context of Azerbaijan’s developing economy.