Role of Natural Gas Consumption in the Reduction of CO2 Emissions: Case of Azerbaijan

Azerbaijan signed the Paris Agreement in 2016 and committed to cut greenhouse gas (GHG) emissions by 35% 2030. Meanwhile, natural has been vital component total energy mix of economy accounted for almost 65% consumption. In overall electricity mix, gas-fired power plants generate 93% country’s electricity. Since global consumption is responsible 73% human-caused greenhouse-gas emissions, CO2 makes up more than 74% total, this study investigates possible mitigation effects on Azerbaijan. Author employed several cointegration methodologies, namely Bound testing Autoregressive Distributed Lag (ARDL) approach, Fully Modified Ordinary Least Squares (FMOLS), Dynamic (DOLS), Structural Time Series model (STSM). paper found that when share increases 1 percent emission per capita decreases approximately 0.14 as a result ARDL, FMOLS, DOLS models. All three models provide between reduction emissions.