A B S T R A C T

The purpose of the research is to evaluate the impact of renewable energy investments on Azerbaijan’s economic development using econometric methods, to determine the role of structural transformation in the energy sector in macroeconomic growth, and to substantiate the position of green energy investments within the country’s economic diversification strategy.

The methodology of the research - a multivariate time-series regression model was constructed based on annual statistical data covering the period 2005-2024. The annual growth rate of real GDP was used as the dependent variable, while renewable energy investments were included as the main explanatory variable. Gross fixed capital formation, carbon emissions, and total energy consumption were incorporated as control variables. The stationarity of the variables was tested using the Augmented Dickey-Fuller test.

The practical importance of the research - the findings provide a practical basis for shaping energy and investment policies and for improving economic diversification strategies.

The results of the research indicate that structural changes in energy sector investments significantly influence the dynamics of economic growth. The expansion of the green energy sector stimulates the transition toward a more sustainable development model and contributes to improving the qualitative dimension of economic growth.

The originality and scientific novelty of the research - the study presents a systematic and comprehensive evaluation of renewable energy investments in the context of Azerbaijan’s economy within a time-series econometric framework. It analyzes the interaction between energy structure, investment, and environmental factors within a unified empirical model.

Keywords: renewable energy investments, economic development, green energy, carbon emissions, energy policy, econometric analysis, Azerbaijan economy.

https://doi.org/10.30546/2707-2037.052.2.2026.1059