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GTAP Resource #1521

"An Economic Policy Discussion of the GHG Emission Problem in Turkey From a Sustainable Development Perspective within a Regional General Equilibrium Model : TURCO"
by Sahin, Sebnem

Since the Rio Conference (1992), discussions on sustainable development have occupied an important place in the agendas of developed countries which try to better apprehend the relationship between the society, economics and environment. The origin of this new preoccupation lies in the pressure exercised by the increasing economic growth on the environmental quality of the OECD countries.
Despite the fact that Turkey's GDP per capita is significantly inferior to all other OECD countries' (OECD, 2000) and that it has experienced significant economic difficulties -the 1999 and 2000 crises-, these discussions concern Turkey because of its classification as an Annex I - OECD country. By postponing the ratification of international conventions on climate change until today, Turkey has become one of the rare exceptions within the OECD countries (with Mexico, South Korea, Poland and the United States).
Our objective is to analyze the relationship between the level of economic development and the environmental problems in Turkey. We proposed an applied general equilibrium model to quantify the impact of a national environmental program on the Turkish economy based on energy taxes and a system of tradable emission permits.
We focus our discussion on the intragenerational equity concerns of these policues as it applies to Turkey. Our aim is to determine the factors of analysis that appear to be significant in the determination of a sustainable development path for Turkey. We specify "realistic" and "feasible" policy suggestions for the country. In order to emphasize the intragenerational equity aspects of the adoption of an environmental policy on climate change. Within a detailed framework, we determine the factors to be taken into account in analyzing the potential impact of such a policy, in terms of different socio-professional classes, their geographical situation and their exposion to the GHG (Greenhouse Gas) emissions.
Our study is based on the 1996 data (the latest input output table available). We try to figure out how the liberalization phase of the Turkish economy influenced environmental problems in Turkey since the 1980s. We also include elements on the country's future goals since the integration to the European Union is one of the most important economic objectives of Turkey.
We use an applied general equilibrium model (TURCO) in order to quantify the impact of a national environmental policy on the different components of the Turkish economy. In this model, Turkey is divided into different regions according to the level of industrialization and pollution in order to determine the most appropriate policies. Detailed the energy and transport sectors in order to develop a trading permits system between different regions and different sectors of production.
We test economic measures practiced in developed countries in GHG reduction policies for Turkey. Our study is focused on the implementation of the fiscal measures and a tradable emission permit system -using the primal method proposed by Mc Kibbin and Wilcoxen(1992)-. The conclusions of the model suggests the imposition of a national uniform energy tax as a first step towards a sustainable development policy respecting the international conventions on global warming.

Resource Details (Export Citation) GTAP Keywords
Category: 2004 Conference Paper
Status: Published
By/In: Presented at the 7th Annual Conference on Global Economic Analysis, Washington DC, USA
Date: 2004
Version: Prelimary
Created: Sahin, S. (5/3/2004)
Updated: Sahin, S. (5/3/2004)
Visits: 2,936
No keywords have been specified.

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