2016
DOI: 10.1016/j.enpol.2015.12.003
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Environmental impacts of coal subsidies in Turkey: A general equilibrium analysis

Abstract: Turkey supports the coal sector providing both production and investment subsidies. Eliminating production subsidies leads to a 2.5% decline in total CO2(eq) by 2030. Additionally, removal of regional investment subsidies reduces CO2(eq) by 5.4%. The macro-effects of both scenarios are found to be quite small. Coal subsidies could be transferred to the financing of green policy alternatives.

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Cited by 62 publications
(33 citation statements)
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“…Moreover, the recent global coal renaissance can have severe consequences for Turkey, particularly when one considers an almost twofold increase target for electricity generation capacity from domestic coal sources. As such, the window of opportunity to avoid high‐carbon lock‐in is rapidly closing, and Turkey's coal‐driven development strategy is threatening its climate ambitions as much as its damaging its finances and public health policies…”
Section: The Road Through Paris: Key Challenges and Opportunities Formentioning
confidence: 99%
“…Moreover, the recent global coal renaissance can have severe consequences for Turkey, particularly when one considers an almost twofold increase target for electricity generation capacity from domestic coal sources. As such, the window of opportunity to avoid high‐carbon lock‐in is rapidly closing, and Turkey's coal‐driven development strategy is threatening its climate ambitions as much as its damaging its finances and public health policies…”
Section: The Road Through Paris: Key Challenges and Opportunities Formentioning
confidence: 99%
“…The report by WWF-Turkey and IPC [46] which was prepared before the INDC submission, consisted of two different scenarios, official plans scenario with the growth rates of Turkey's official economic program and BAU scenario with more realistic growth rates. Acar and Yeldan [44] found the emissions projection in the INDC too high and not in line with the recent Turkish historical pathway. The report by TUSIAD [47] prepared its own BAU scenario by using Climate Equity Reference Project (CERP) which uses projections of IMF, McKinsey, and the World Bank.…”
Section: Discussionmentioning
confidence: 92%
“…Acar and Yeldan [44] assessed the impact of current coal subsidies on macro indicators and CO 2 emissions by running a multi-region CGE model between 2015 and 2030. They found that elimination of subsidies for coal results in a slight reduction in GDP, but a substantial decrease in CO 2 emissions.…”
Section: Literature Reviewmentioning
confidence: 99%
“…The model is composed of 17 production sectors spanning two regionalied bodies for the Turkish economy (high versus low income), a representative private household to carry out savings-consumption decisions, a government to implement public policies towards environmental abatement, and a "rest of the world" account to resolve the balance of payment transactions. Antecedents of the model rest on the seminal contributions of the CGE analyses on gaseous pollutants, energy utilization, and climate change economics for Turkey as shown in Acar and Yeldan (2016), Kumbaroglu (2003), Lise (2006), Akin-Ölçüm and Yeldan (2013), Şahin (2004), Telli et al (2008), and Vural (2009); however, it should be noted that these studies were based on national aggregates. Given the official focus on regional investment and subsidization in Turkey, it is pertinent to work with a regional diversification.…”
Section: Algebraic Structure Of the Cge Modelmentioning
confidence: 99%