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GTAP Resource #3322

"The Economic and Environmental Implications of Turkish Accession to the European Union: A CGE analysis"
by Aydin, Levent and Mustafa Acar

The purpose of this paper is to analyze the economic and environmental implications of possible Turkish accession to the European Union (EU). The paper focuses on the impacts of three main components of Turkey’s possible EU membership: i) free movement of labor between EU and Turkey, ii) free movement of capital, iii) burden sharing of Turkey in terms of EU’s environmental objectives in the horizon of 2020, i.e. 10 percent reduction of carbon emissions. Among these, particular focus is placed on the influence of the CO2 emission reduction targets in both regions and its consequences on the carbon price in 2020. We estimate the resource allocation effects of EU climate change policies on both regions by taking into account the likely labor movement from Turkey to the EU and capital movement from EU to Turkey in reverse direction. The results show that the different emission targets for both regions bring about a change in comparative advantages and thus a change in interregional competitiveness, which in turn will result in welfare changes. In case of factor mobility, welfare effects of Turkish accession will be higher for Turkey but it will be lower for EU.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Not published
Date: 2010
Created: Aydin, L. (4/15/2010)
Updated: Batta, G. (5/14/2010)
Visits: 1,580
- Labor market issues
- Climate change policy
- The GTAP Data Base and extensions
- European Union

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