Tax policies for the solution of environmental problems: A comparative analysis between Turkey and the European Union

The rapid growth in production and consumption during industrialization, combined with the unsustainable use of natural resources, has resulted in severe global environmental pollution. The external costs of such pollution extend beyond economic factors, encompassing the degradation of natural resources, such as air, water, and soil, alongside critical challenges, including ecosystem disruption and climate change. To mitigate these issues, governments increasingly employ tax policies as a regulatory tool. The European Union (EU) serves as a prominent actor in advancing environmental policies and implementing environmental taxes. As part of its common framework, the EU requires candidate countries to harmonize with its environmental and tax regulations. Turkey, as an EU candidate country, has undergone policy transformation during its negotiation process. This study provides a comparative analysis of the environmental policies and taxation strategies of Turkey and EU member states. The findings highlight significant disparities, showing that while EU countries effectively use environmental taxes to promote sustainable practices among producers and consumers, Turkey's taxation approach remains limited in scope. Based on the results, the study presents policy recommendations, concluding that Turkey should prioritize the development of its carbon tax framework and emissions trading system infrastructure to strengthen its environmental policies.