| Summary: | Countries take different measures to reduce environmental pollution. Countries sometimes choose taxation as a method for environmentally friendly production and consumption activities. On the other hand, they also make additional environmental expenditures to protect the environment. The method and implementation of the decisions to be taken differ from country to country. In this study, the relationship between CO2 emissions and government R&D expenditures for Azerbaijan is examined. In the study, causality analysis was carried out using annual data for the period 1998-2022. After performing the necessary assumption tests in the analysis, the Granger method was preferred. According to the findings of the study, no causal relationship could be determined between R&D expenditures and CO2 emissions. In other words, there is no causal relationship between these variables.
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