Tracing the second dividend in environmental policies : a CGE application to Turkey
Author(s)
Advisor
Böke, Selin SayekDate
2009Publisher
Bilkent University
Language
English
Type
ThesisItem Usage Stats
160
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Abstract
As the threat of global warming is becoming more evident, the governments
are called for a joint action to reduce the greenhouse gas emissions and prevent
climate change, by the Intergovernmental Panel on Climate Change and its legally
binding successor, the Kyoto Protocol. The inevitability of environmental policy
implementation in such a context has focused the recent energy-environmenteconomy
literature on the examination of costs related with those policy measures
and the possibility of a double dividend, i.e. economic improvements along with
environmental benefits. This study, by making use of a ten sector CGE model for
Turkey, searches for the second dividend in the presence of environmental taxation
by payroll tax reductions. The results indicate that it is possible to achieve emission
reductions with no additional burden on the economy if the environmental taxes are
accompanied by a reduction in payroll taxes.