CO2 elasticity of income: The case of Turkey
Handbook of Sustainable Energy, NOVA Publications , ss.631-648, 2011
- Yayın Türü: Kitapta Bölüm / Araştırma Kitabı
- Basım Tarihi: 2011
- Yayınevi: NOVA Publications
- Sayfa Sayıları: ss.631-648
- Anahtar Kelimeler: CO2 emission reduction, Energy-economy interactions, Environmental policy modeling
- Boğaziçi Üniversitesi Adresli: Evet
Özet
Countries with rapidly growing energy needs are faced with the sustainable development challenge of reducing CO2 emissions without sacrifying economic growth. The GDP impact of emission reduction depends on the energy and economy infrastructure of a country, and can therefore exhibit significant variation under different economic structures. The CO2 elasticity of income appears to be a useful indicator to yield hints for policy-makers about a country's economic flexibility to reduce emissions. Defined as the percentage decrease in GDP derived by a 1% reduction in CO2 emissions, the elasticity value provides a measure of the aggregate macroeconomic impact of emission reduction. Elasticity estimates are obtained for the case of Turkey by means of a technologically detailed energy policy model which combines a bottom-up disaggregate activity analysis framework of the energy sector with an aggregate representation of the macroeconomy under an economy-wide nested CES production function. The model is used to generate Turkey's reference energy/economy projections, and to explore the GDP changes under alternative emission restricting scenarios. The CO2 elasticities implied from the results provide a measure of the country's economic flexibility to reduce emissions and point out the need for a structural change. © 2010 by Nova Science Publishers, Inc. All rights reserved.