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Role of Natural Gas Consumption in the Reduction of CO 2 Emissions: Case of Azerbaijan

Author

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  • Sarvar Gurbanov

    (School of Public and International Affairs (SPIA), ADA University, 61 Ahmadbey Aghaoglu, Baku AZ1008, Azerbaijan)

Abstract

Azerbaijan signed the Paris Agreement in 2016 and committed to cut greenhouse gas (GHG) emissions by 35% in 2030. Meanwhile, natural gas has been vital component in the total energy mix of Azerbaijan economy and accounted for almost 65% of the total energy consumption. In the overall electricity mix, natural gas-fired power plants generate 93% of the country’s electricity. Since global energy consumption is responsible for 73% of human-caused greenhouse-gas emissions, and CO 2 makes up more than 74% of the total, this study investigates possible mitigation effects of the natural gas consumption on CO 2 emissions for Azerbaijan. Author employed several cointegration methodologies, namely Bound testing Autoregressive Distributed Lag (ARDL) approach, Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Structural Time Series model (STSM). Author of this paper found that when the share of natural gas increases 1 percent in the total energy mix, CO 2 emission per capita decreases approximately 0.14 percent as a result of the ARDL, FMOLS, and DOLS models. All three models provide cointegration between the share of natural gas in the total energy mix and reduction in CO 2 emissions.

Suggested Citation

  • Sarvar Gurbanov, 2021. "Role of Natural Gas Consumption in the Reduction of CO 2 Emissions: Case of Azerbaijan," Energies, MDPI, vol. 14(22), pages 1-14, November.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:22:p:7695-:d:681180
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    2. Qiang Wang & Jiale Guo & Rongrong Li & Xue-ting Jiang, 2024. "Economic growth and carbon emission in the Organization for Economic Cooperation and Development countries: The effects of oil, gas, and renewable energy," Energy & Environment, , vol. 35(4), pages 2107-2130, June.
    3. Sarvar Gurbanov & Jeyhun I. Mikayilov & Shahriyar Mukhtarov & Shahin Maharramli, 2023. "The price and income elasticities of natural gas demand in Azerbaijan: Is there room to export more?," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.
    4. Pengying Wang & Shuo Zhang & Limei Chen, 2023. "Research on the Integration of a Natural Gas-Distributed Energy System into the Oilfield Facility in China," Sustainability, MDPI, vol. 15(4), pages 1-15, February.
    5. Majd Olleik & Hassan Hamie & Hans Auer, 2022. "Using Natural Gas Resources to De-Risk Renewable Energy Investments in Lower-Income Countries," Energies, MDPI, vol. 15(5), pages 1-22, February.

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    More about this item

    Keywords

    CO 2 ; natural gas; renewable energy; electricity security; Azerbaijan;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources

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