Green Economics

This study empirically analyzes the impact of green economic assistance on economic growth and carbon intensity in Azerbaijan over the period 2010-2025. In recent years, the role of environmentally friendly financial and technical assistance has become even more relevant in the context of policies implemented in the country towards sustainable development, green energy transition and combating climate change. The main objective of the study is to determine how green economic assistance affects the dynamics of economic growth in Azerbaijan and whether this effect is accompanied by a reduction in carbon intensity. The study was conducted on the basis of time series and panel type official statistical data covering the period 2010-2025. The analysis used a fixed effects model and a system GMM approach, which allowed taking into account potential endogeneity problems and structural changes. The real economic growth rate and carbon intensity indicators were taken as dependent variables and the volume of green economic assistance directed to Azerbaijan as the main explanatory variable. The control variables included energy consumption, renewable energy share, foreign direct investment and trade openness. Empirical results show that green economic assistance has a positive impact on reducing carbon intensity in Azerbaijan, while supporting economic growth. These results confirm the important role of green financial instruments in the country's long-term sustainable development strategy.