Economic analysis of alternative mitigation policy practice for Turkey: General equilibrium analysis

The main objective of this study is to analyze the economic costs of the emission trade and carbon tax in terms of Turkish economy which is one of the methods used to control the carbon emissions which is the main reason for the global warming coming into question with Kyoto protocol in 2008 and to make advices for economic policies that have to be applied in future. In the studies in Turkey, it is claimed that mitigation policy (greenhouse gas mitigation) implementations (carbon tax and emission trade) will bring a heavy burden to economy. In this study it is aimed to guide the decision makers for making policies by discussing the accuracy of the arguments. When it is considered that there is very less amount of studies about this subject in economics literature especially in Turkey, it is thought that this study will fill a significant gap.In this context in this study, we expect that carbon tax and emission trade will bring less burden to economy and macroeconomic variables than claimed in literature and will affect the global warming in the reducing direction.