PATHWAYS TO PROSPERITY AND SUSTAINABILITY: ASSESSING THE EFFECTS OF TRANSPORT INFRASTRUCTURE INVESTMENTS ON ECONOMIC GROWTH AND GHG EMISSIONS IN AZERBAIJAN IN THE CONTEXT OF COP 29

Abstract

Ahead of Azerbaijan's hosting of COP 29, this paper examines the impacts of transport infrastructure investments in Azerbaijan on economic growth and greenhouse gas (GHG) emissions. In this study, using the data of the official reports of the Statistical Committee of the Republic of Azerbaijan and the World Bank, the Ordinary Least Squares (OLS) regression analysis tool was used to reveal the potential impact of investments in transportation infrastructure. The main essence of this study is to examine the strategic investment projects aimed at modernizing the transportation networks of Azerbaijan and its ambitious effects. The nation's vision is not limited to infrastructural development, but also strives to achieve sustainable progress by establishing itself as a global leader in promoting environmentally conscious activities. Through political certainty and international cooperation, Azerbaijan is trying to show itself as a leader in promoting sustainable development in the context of 29th Conference of the Parties (COP 29). The research aims to examine how the planned development of transport infrastructure drives economic progress with a focus on climate impacts. This article revealed the significant role of investments in transport infrastructure in fostering economic growth in Azerbaijan, particularly through positive effects on the non-oil GDP growth rate. However, it found that these investments did not lead to substantial reductions in GHG emissions, indicating a lack of corresponding environmental benefits. This underscores the complex interplay between infrastructure development and environmental sustainability, highlighting the necessity for a balanced approach in policy implementation.