Hostname: page-component-586b7cd67f-rdxmf Total loading time: 0 Render date: 2024-11-24T12:00:07.089Z Has data issue: false hasContentIssue false
  • English
  • Français

Fossil fuel subsidies as a lose-lose: Fiscal and environmental burdens in Turkey

Published online by Cambridge University Press:  25 May 2018

Sevil Acar Open the ORCID record for Sevil Acar [Opens in a new window] ,
Sarah Challe ,
Stamatios Christopoulos  and
Giovanna Christo
Sevil Acar
Affiliation:
Department of Economics, Altınbaş University, 34218, Bağcılar, İstanbul, Turkey; Center for Climate Change and Policy Studies, Boğaziçi University, 34342, Beşiktaş, İstanbul, Turkey; sevil.acar@altinbas.edu.tr, sevil.acar@boun.edu.tr.
Sarah Challe
Affiliation:
Carbon Disclosure Project (CDP), France and Benelux(France, Belgium, Netherlands, Luxembourg, and Monaco); sarah.challe@cdp.net.
Stamatios Christopoulos
Affiliation:
UN Environment, Global Environment Financing, Pacific Office, Apia, Samoa; stamatios.christopoulos@unep.org.
Giovanna Christo
Affiliation:
National Communication under the UNFCCC, UNDP Brazil / Ministry of Science, Technology, Innovations, and Communication(MCTIC); giovanna.christo@mctic.gov.br.
Get access Rights & Permissions [Opens in a new window]

Abstract

Attempts at common agreements to phase out fossil fuel subsidies (FFS) have been increasing, as the topic generated momentum through the Rio Dialogues prior to the 2012 United Nations Conference on Sustainable Development (Rio+20) and following the Paris Agreement in 2016. This study quantifies the magnitude and the relative importance of FFS in the Turkish economy and produces a relevant national FFS synthesis for policy design. FFS form a complex system of a self-contradictory nature that stands in stark contrast with the Turkish government’s statements regarding sustainable development. Based on available data from the 2000s, we find that Turkey provides state support for coal and the exploration of oil and natural gas that represents roughly 0.2 percent of its nominal GDP per year. Continuing to subsidize fossil fuels narrows down the fiscal options that could otherwise be used to support cleaner technologies and mitigation actions. Given the fact that fossil fuels have significantly negative implications for the environment and health, eliminating those subsidies has the potential to help combat environmental pollution, climate change, and related problems.

Keywords

Coal subsidiesfossil fuel subsidiesenergy policysustainable development
Type
Articles
Information
New Perspectives on Turkey , Volume 58 , May 2018 , pp. 93 - 124
Copyright
© New Perspectives on Turkey and Cambridge University Press 2018 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

Authors’ Note: This work was supported by Altınbaş University (formerly İstanbul Kemerburgaz University) under the Research and Publication Grant (No.: 2012–2013). We also acknowledge great assistance by Ronald Steenblik in updating the FFS estimates calculated by different institutions.

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views, official policy, or position of the institutions, agencies, or organizations that the authors were/are affiliated with during the time of drafting the article or the time of publication. Neither the aforementioned institutions, agencies, and organizations nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein. At the time of project conceptualization and research, Stamatios Christopoulos was serving as a programme analyst with the United Nations Development Programme, whilst at the time of publication he is serving as a programme management officer with UN Environment. Reproduction is authorized provided the source is acknowledged.

References

Acar, Sevil and Yeldan, Erinç. “Environmental Impacts of Coal Subsidies in Turkey: A General Equilibrium Analysis.” Energy Policy 90 (2016): 1–15.Google Scholar
Acar, Sevil and Gültekin-Karakaş, Derya. “Questioning Turkey’s ‘Miracle’ Growth from a Sustainability Perspective.” Journal of Environment and Development 25, no. 2 (2016): 131–158.CrossRefGoogle Scholar
Acar, Sevil, Kitson, Lucy and Bridle, Richard. “Subsidies to Coal and Renewable Energy in Turkey”. Winnipeg and Geneva: IISD-GSI, 2015. https://www.iisd.org/gsi/sites/default/files/ffsandrens_turkey_coal_eng.pdf.Google Scholar
Asia-Pacific Economic Cooperation (APEC). “2009 Leaders’ Declaration.” November 14, 2009, Singapore. http://www.apec.org/Meeting-Papers/Leaders-Declarations/2009/ 2009_aelm.aspx.Google Scholar
Atıcı, Cemal and Kurt, Fırat. “Türkiye’nin Dış Ticareti ve Çevre Kirliliği: Çevresel Kuznets Eğrisi Yaklaşımı.” Tarım Ekonomisi Dergisi 13, no. 2 (2007): 61–69.Google Scholar
Atiyas, İzak and Dutz, Mark, “Competition and Regulatory Reform in the Turkish Electricity Industry.” Paper presented at the Conference on EU Accession: Turkey (Ankara, May 10–11, 2003). http://myweb.sabanciuniv.edu/izak/files/2008/10/atiyas-dutz-electricity-2004.pdf.Google Scholar
Atiyas, İzak, Çetin, Tamer and Gülen, G. Gürcan. “Regulatory Reform and Competition in the Turkish Electricity Industry.” In Reforming Turkish Energy Markets: Political Economy, Regulation and Competition in the Search for Energy Policy . Edited by İzak Atiyas, Tamer Çetin, and G. Gürcan Gülen (New York: Springer, 2012): 15–62.CrossRefGoogle Scholar
Bast, Elizabeth, Kretzmann, Stephen, Krishnaswamy, Srinivas and Romine, T. Traci. Low Hanging Fruit: Fossil Fuel Subsidies, Climate Finance, and Sustainable Development. Washington, DC: Heinrich Böll Stiftung, 2012.Google Scholar
Bloomberg New Energy Finance. “Turkey’s Changing Power Markets (White Paper).” Bloomberg New Energy Finance, 2014. http://about.bnef.com/white-papers/turkeys-changing-power-markets/.Google Scholar
Bridle, Richard and Kitson, Lucy. “The Impact of Fossil-Fuel Subsidies on Renewable Electricity Generation.” Winnipeg and Geneva: IISD-GSI, 2014. https://www.iisd.org/gsi/sites/default/files/ffs_rens_impacts.pdf.Google Scholar
Coady, Ian Parry, Sears, Louis and Shang, Baoping. “How Large Are Global Energy Subsidies?” IMF Working Paper WP/15/105 (2015). http://www.imf.org/external/pubs/ft/wp/2015/wp15105.pdf.Google Scholar
Devlet Planlanma Teşkilatı. Ninth Development Plan (2007–2013). Ankara: Devlet Planlanma Teşkilatı, 2006. http://www.kalkinma.gov.tr/Lists/Kalknma%20Planlar/Attachments/1/Ninth%20Development%20Plan%202007-2013.pdf.Google Scholar
Devlet Planlanma Teşkilatı. “Turkey’s Electric Energy Market and Supply Security Strategy.” Paper No. 2009/11 (September 18, 2009). http://www.enerji.gov.tr/File/?path=ROOT%2F1%2FDocuments%2FSayfalar%2FArz+G%C3%BCvenli%C4%9Fi+Strateji+Belgesi.pdf.Google Scholar
Ekonomi, Bakanlığı, “Yatırımlarda Devlet Yardımları.” 2012. https://www.ekonomi.gov.tr/portal/faces/home/ yatirim/yatirimTesvik.Google Scholar
Ellis, Jennifer, “The Effects of Fossil-fuel Subsidy Reform: A Review of Modeling and Empirical Studies.” Paper prepared for the Global Subsidies Initiative, 2010. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1572397.CrossRefGoogle Scholar
Energy and Resources Institute, The and Global Subsidy Initiative. A Citizen’s Guide to Energy Subsidies in India. Winnipeg and Geneva: IISD-GSI, 2012. http://www.iisd.org/gsi/sites/default/files/ffs_india_czguide.pdf.Google Scholar
Erdoğdu, Erkan. “Energy Market Reforms in Turkey: An Economic Analysis.” MPRA Paper No. 26929, 2005. https://mpra.ub.uni-muenchen.de/26929/1/MPRA_paper_26929.pdf.Google Scholar
Erdoğdu, Erkan. “Regulatory Reform in Turkish Energy Industry: An Analysis.” Energy Policy 35, no. 2 (February 2007): 984–993.CrossRefGoogle Scholar
Erdoğdu, Erkan. “Motor Fuel Prices in Turkey.” Energy Policy 69, no. 6 (June 2014): 143–153.Google Scholar
G20. “G20 Leaders Statement: The Pittsburgh Summit.” September 24–25, 2009, Pittsburgh. http://www.g20.utoronto.ca/2009/2009communique0925.html.Google Scholar
Gerasimchuk, Ivetta. Fossil Fuels – At What Cost? Government Support for Upstream Oil and Gas Activities in Russia. Moscow and Geneva: IISD-GSI and WWF Russia, 2012b. https://www.iisd.org/sites/default/files/publications/ffs_awc_russia_eng.pdf.CrossRefGoogle Scholar
Global Footprint Network. Resource Constraints and Economic Performance in Eastern Europe and Central Asia. Report to UNDP Bratislava, Global Footprint Network (GFN), Oakland and UNDP, Bratislava, 2011.Google Scholar
İklim Ağı. “İklim Değişiyor, Türkiye Değişmiyor. Türkiye Çözüme Gerçekten Ortak Olsun!” http://www.greenpeace.org/turkey/Global/turkey/report/2012/11/T%C3%BCrkiye’nin%20%C4%B0klim%20Karnesi.pdf.Google Scholar
International Energy Agency. Energy Policies of IEA Countries: Turkey 2005. Paris: International Energy Agency, 2005.Google Scholar
International Energy Agency. “Carrots and Sticks: Taxing and Subsidising Energy”. Paris: International Energy Agency, Economic Analysis Division, 2006. http://www.iea.org/publications/freepublications /publication/oil_subsidies.pdf.Google Scholar
International Energy Agency. Energy Policies of IEA Countries: Turkey Review. Paris: International Energy Agency, 2009.Google Scholar
International Energy Agency. World Energy Outlook. Paris: International Energy Agency, 2010.Google Scholar
International Energy Agency. Tracking Clean Energy Progress 2013: IEA Input to the Clean Energy Ministerial. Paris: OECD/IEA Publishing, 2013. http://www.iea.org/publications/ TCEP_web.pdf.Google Scholar
International Energy Agency. World Energy Outlook 2016. Paris: International Energy Agency, 2016.Google Scholar
International Energy Agency. “Commentary: Fossil-fuel Consumption Subsidies Are down, But Not out.” December 20, 2017. https://www.iea.org/newsroom/news/2017/december/commentary-fossil-fuel-consumption-subsidies-are-down-but-not-out.html.Google Scholar
International Energy Agency. “Turkey: Energy Balances, 2017.” http://www.iea.org/statistics/ statisticssearch/report/?country=TURKEY&product=Balances&year=2017.Google Scholar
International Monetary Fund. “Case Studies on Energy Subsidy Reform: Lessons and Implications.” 2013. http://www.eenews.net/assets/2013/03/27/document_pm_04.pdf.Google Scholar
Kalkınma Bakanlığı. İllerin ve Bölgelerin Sosyo-Ekonomik Gelişmişlik Sıralaması Araştırması (SEGE-2011). Ankara: Kalkınma Bakanlığı, 2013.Google Scholar
Kalkınma Bakanlığı. The Tenth Development Plan (2014–2018). Ankara: Kalkınma Bakanlığı, 2014.Google Scholar
Koplow, Doug, “Quantifying Impediments to Fossil Fuel Trade: An Overview of Major Producing and Consuming Nations.” Prepared for the OECD Trade Directorate. 1998.Google Scholar
Kovacevic, Aleksandar. Fossil Fuel Subsidies in the Western Balkans: A Report for UNDP. Regional Bureau for Europe and the Commonwealth of Independent States (RBEC), December 2011. http://www.tr.undp.org/content/dam/turkey/docs/Publications/ EnvSust/Fossil_Fuel_Subsidies_F.pdf.Google Scholar
Organisation for Economic Co-operation and Development. Energy Policies of IEA Countries, Turkey Review. Paris: OECD Publishing, 2009.Google Scholar
Organisation for Economic Co-operation and Development. Inventory of Estimated Budgetary Support and Tax Expenditures for Fossil Fuels 2013. OECD Publishing, 2013.Google Scholar
Organisation for Economic Co-operation and Development. Regulatory reform in electricity, gas and road freight transport. OECD Reviews of Regulatory Reforms, 2002. http://www.oecd.org/regreform/1840779.pdf.Google Scholar
Organisation for Economic Co-operation and Development. “Turkey: Inventory of Estimated Budgetary Support and Tax Expenditures for Fossil-Fuels.” 2011. http://www.oecd.org/site/tadffss/TUR.pdf.Google Scholar
Organisation for Economic Co-operation and Development. Inventory of Estimated Budgetary Support and Tax Expenditures for Fossil Fuels: Preliminary Version. 2011. http://www.oecd.org/site/tadffss/48805150.pdf. 293–303.Google Scholar
Organisation for Economic Co-operation and Development. Inventory of Estimated Budgetary Support and Tax Expenditures for Fossil Fuels 2013. Paris: OECD Publishing, 2013.Google Scholar
OECD.Stat. “OECD Statistics.” http://stats.oecd.org/. 2014.Google Scholar
Pöyry Management Consulting (Norway) AS (Econ Pöyry), Frian Aarsnes, and Petter Lindgren. Fossil Fuels – At What Cost? Government Support for Upstream Oil and Gas Activities in Norway. Geneva: IISD-GSI, 2012. https://www.iisd.org/gsi/sites/default /files/ffs_awc_norway.pdf.Google Scholar
Riedy, Chris and Diesendorf, Mark. “Financial Subsidies to the Australian Fossil Fuel Industry.” Energy Policy 31, no. 2 (2003): 125–137.CrossRefGoogle Scholar
Şahin, Ümit. “Türkiye’nin Kömür Tuzağı.” Yeşil Gazete, June 2, 2014. https://yesilgazete.org/blog/2014/06/02/turkiyenin-komur-tuzagi/.Google Scholar
T.C. Başbakanlık Hazine Müsteşarlığı. “Statistics.” https://www.hazine.gov.tr/ekonomik-gostergeler.Google Scholar
Türkiye Elektrik İletim Anonim Şirketi (TEİAŞ). “Turkish Electricity Production Planning Study (2005–2020).” 2013.Google Scholar
Türkiye Elektrik İletim Anonim Şirketi (TEİAŞ). “Türkiye Elektrik Üretim-İletim 2016 Yılı İstatistikleri.” 2016. https://www.teias.gov.tr/tr/turkiye-elektrik-uretim-iletim-2016-yili-istatistikleri.Google Scholar
Türkiye İstatistik, Kurumu (TÜİK). “Greenhouse Gas Emissions Statistics, 1990–2015.” http://www.turkstat.gov.tr. 2017.Google Scholar
Türkiye Kömür, İşletmeleri. Kömür Sektör Raporu (Linyit) 2012. Ankara: Enerji ve Tabii Kaynaklar Bakanlığı, 2012.Google Scholar
Türkiye Taşkömürü Kurumu (TTK) Genel Müdürlüğü. “2011 Yılı Faaliyet Raporu.” http://www.taskomuru.gov.tr/file/2011.pdf.Google Scholar
United Nations Development Programme (UNDP). Fossil Fuel Fiscal Policies and Greenhouse Gas Emissions in Viet Nam. Ha Noi: United Nations Development Programme, 2012.Google Scholar
Withana, Sirini, Brink, Patrick ten, Franckx, L., Hirschnitz-Garbers, M., Mayeres, I., Oosterhuis, F. and Porsch, L.. Study Supporting the Phasing out of Environmentally Harmful Subsidies: Final Report. London and Brussels: Institute for European Environmental Policy (IEEP), October 2012. http://ec.europa.eu/environment/enveco/taxation/pdf/ report_phasing_out_env_harmful_subsidies.pdf.Google Scholar