Nanofibers of conductive polymer-Polypyrrole (PPY) of size 250nm showing conductivity in the range of ~10-3 S/m and potential adsorption of carbon dioxide concentration up to 5000 ppm are produced using electrospinning process. Stable, doped polymer dispersion of PPY with a small amount of Polyethylene Oxide (PEO) as a carrier are used for electrospinning. All electrospinning parameters are optimized, and rheological behavior of the polymer solution analyzed for the collection of highly conductive and sensitive PPY nanofibers. The high surface area of PPY nanofibers are preferred for carbon dioxide sensitivity. SEM, FTIR, Four Point Probe resistivity measurement are used to characterize the nanofibers. Laboratory set-up is built to measure the sensitivity to carbon dioxide. Resistivity change of PPY nanofibers with change in carbon dioxide concentration is measured. PPY being a conducting polymer holds potential to be used in gas sensing and electronic applications in nanofiber form. This research addresses the challenges of electrospinning PPY and the need for enhanced carbon dioxide sensors.