The role of financial regulations in the field of energy

Energy that is indispensable for countries and cannot be substituted, offers a huge importance for countries and constitutes a weighted agenda for the policies. Modern energy policies basically prioritize energy safety, efficiency, diversity and their environment-friendly features. In this study, financial regulations in the field of energy at OECD countries, EU member countries and Turkey will be analyzed and the impact of financial regulations will be ascertained. Energy end-user price is calculated by taking taxes, CO2 emission pricing and subsidies into account. Financial policy tools in EU can be listed as energy taxation, EU emission trade system and incentives for renewable energy. Legal regulations affecting energy field in Turkey can be examined in three categories; energy taxation, tax expenditures and support mechanisms. In the scope of environmental tax, Value Added Tax (VAT), Private Consumption Tax (PCT) and Motor Vehicle Tax are applied in the Turkish Fiscal System. Tax expenditures and support mechanisms covering tax exemption, exception, reduction and similar practices in energy field are provided to both producers and consumers. As a result, activating energy policies depends on decisions of many industries and individuals especially in transportation, industry and residence. One of the most important tools that affects the rational decisions of the mentioned agents on generation, distribution, consumption and savings, consist of the financial tools. Tax policies, subsidies and other incentive mechanisms planned accordingly will play important roles in guiding preferences of the agents and therefore in successful implementation of energy policies.