Green Economics

This study examines the challenges and advantages of economic recovery in independent Azerbaijan by positioning natural capital as the primary economic asset. Special emphasis placed on the transformation proses following Azerbaijan’s restoration of its territorial integrity in the 2020 Second Karabakh War. The research analyzes the macroeconomic impacts of transitioning to a green economy within international and regional contexts to set the damaged territories on a path of sustainable development. Over several decades, The Karabakh region suffered significant environmental degradation due to lack of maintenance and harmful anthropogenic activities, leading to the collapse of ecological balance and the total destruction of strategic infrastructure. The study further explores the influence of Azerbaijan hosting the international COP29 event on the nation’s green transformation agenda. The objective is to support the reintegration of Karabakh’s cultural and potential within the framework of green development model parameters. These factors necessitate the implementation of a “Green Economy” model during the current post-conflict period. The research employs an adaptive, data-driven methodology utilizing secondary statistical sources and comparative data from post-conflict areas. To analyze renewable energy potential, an assessment model is used where total output equals the sum of solar, wind and hydroelectric power production. The findings indicate that the “Smart Village” and “Smart City” projects, proses significant potential to enhance macroeconomic efficiency, ensure energy security and foster long-term regional development while reducing emissions. Consequently, these projects serve as vital macroeconomic tools that facilitate not only regional growth but also the nation’s net-zero emission targets.