Climate Mitigation Policy in Türkiye

By Ian W.H. Parry, Danielle N Minnett, Karlygash Zhunussova

May 12, 2023

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Ian W.H. Parry, Danielle N Minnett, and Karlygash Zhunussova. Climate Mitigation Policy in Türkiye, (USA: International Monetary Fund, 2023) accessed December 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper discusses potential elements of a comprehensive strategy for making headway on Türkiye’s net zero emissions pedge for 2053. These elements include: (i) aligning 2030 emissions commitments with long term neutrality; (ii) implementing a carbon price rising to an ilustrative $75 per tonne by 2030; (iii) enhancing acceptability through using carbon pricing revenues efficiently and equitably and including competitveness measures; (iv) introducing various feebate schemes (the fiscal analogue of regulations) to reinforce mitigation incentives in the power, industry, transport, building, forestry, and agricultural sectors. According to modelling results a phased revenue-neutral $75 carbon price reduces CO2 emisisons 21 percent below baseline levels in 2030, raises revenues of 1.7 percent of GDP, avoids 11,000 air pollution deaths over the decade, while imposing an average burden on households of 3 percent of their consumption (before revenue-recycling). With revenues used for targeted transfers and labor tax reductions the overall policy is pro-poor and pro-equity (average household is better off by 0.4 percent).

Subject: Carbon tax, Environment, Greenhouse gas emissions, Non-renewable resources, Renewable energy, Taxes

Keywords: Agriculture, Allowance price volatility, Buildings, Carbon pricing, Carbon tax, Climate change, Emission rate, Emissions intensity, Emissions trading system, Feebate, Forestry., Global, Greenhouse gas emissions, Industry, Mitigation policy, Non-renewable resources, Power, Renewable energy, Transportation, Türkiye climate mitigation

Publication Details

Pages:

48
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2023/108
Stock No:

WPIEA2023108
ISBN:

9798400241291
ISSN:

1018-5941

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