Public solutions in internalizing negative externalities: The case of Türkiye

Externalities are at the top of the issues where the market fails. The elimination of negative externalities as a result of the production or consumption activity of one economic unit adversely affecting another economic unit is very important for the public economy. Therefore, the negative externalities we encounter in daily life in the form of more environmental effects; It is tried to be internalized by using fiscal policy tools such as taxes, subsidies, emissions, fees and direct control. In this study, the policies implemented for the prevention, reduction and elimination of environmental pollution in Türkiye were examined in detail with the inclusion of numerical data covering the period 2014-2024. In addition, the study includes comparison with the use of numerical and verbal data on policies implemented in selected OECD countries with similar characteristics to Türkiye. As a result of the study, it was revealed that more tax instruments were used in Türkiye to internalize negative externalities, but that the taxes were not taken within the scope of the social purpose for the environment, but in line with the financial purpose as income provision to the budget. The opinion has been reached that other activities carried out by the public economy in our country are insufficient in terms of (environmental) negative externalities and should be regulated. At this point, the aim of the study is to internalize the negative externalities, the policies that are being implemented in Türkiye; examine and evaluate in detail their purpose, scope and effectiveness; Afterwards, it is to reveal the activities that can be done in the field of protecting and improving the health of the individual, society and the environment. Keywords: Market Failures, Externalities, Negative Externalities, Public Solutions, Türkiye.