Browsing by Author "Acar, Sevil"

Now showing 1 - 3 of 3

Did ETS Coverage and Free Allowances Affect Economic Performance and GHG Emissions in the EU?: Evidence From a Panel of EU Sectors
(Digital Initiatives Univ Waterloo Lib, 2025) Aydin, Asli; Acar, Sevil
This study analyzes the impacts of the European Union Emissions Trading System and free allowances on sectoral value added, gross output, and greenhouse gas emissions in the European Union for the period 1995-2020. Since the European Union Emissions Trading System inherently covers firm-level emissions, most studies in this area have been conducted at the firm level. However, a sectoral analysis allows understanding how sectors as a whole respond to the carbon pricing mechanism in terms of carbon reductions, competitiveness and sectoral output growth. It can also reveal how changes differ across sectors subject to different regulations. Controlling for sectoral employment, intermediate input use, and time effects, the results show that European Union Emissions Trading System coverage has a negative impact on both value added and gross output, but does not lead to a significant reduction in greenhouse gas emissions. The findings indicate that more labor-intensive and less input-intensive production can reduce emissions. Furthermore, the study draws attention to the competitive losses caused by compliance costs in sectors within the scope of the European Union Emissions Trading System and shows that the impact of free allowances on performance is insufficient. These results highlight the importance of coherent and inclusive approaches in policy design to more effectively manage the economic and environmental impacts of the European Union Emissions Trading System. It is recommended to develop more targeted and flexible strategies, taking into account sectoral differences.
Citation - WoS: 38
Citation - Scopus: 45
Potential Effects of the Eu's Carbon Border Adjustment Mechanism on the Turkish Economy
(Springer, 2022) Acar, Sevil; Asici, Ahmet Atil; Yeldan, A. Erinc
In December 2019, the EU announced the European Green Deal (EGD) to create a climate-neutral continent by 2050. Accordingly, the EU Emission Trading System (ETS) will be revised to maintain economic growth against possible losses in competitiveness, leading to carbon leakage. Carbon border adjustment (CBA) is one of the mechanisms proposed to tackle the carbon leakage problem. In this paper, we provide a first-order estimate of the potential impacts of a possible CBA across production sectors and build a dynamic, multi-sectoral applied general equilibrium (AGE) model to study the overall macroeconomic impact of the EGD on the Turkish economy. Then, we extend our analysis to document the potential benefits of a more active climate policy. The model is in the Walrasian tradition wherein aggregate supply and demand actions are simulated with the interplay of relative prices to bring equilibrium in the markets for goods, for labor, and for foreign exchange. Constructed around 24 production sectors, the model accommodates flexible, multi-level functional forms to link production activities with gaseous emissions, a government entity to maintain taxation, and public expenditures, as well as administration of environmental policy instruments, all within an open-economy macroeconomic environment. Our results suggest that the potential adverse impact of the CBA on the Turkish economy would range between 2.7 and 3.6% loss of the GDP by 2030 over the business-as-(un)usual base path. We also document that under an alternative scenario through which Turkey is modeled as an active agent in the international climate policy arena embedding decarbonization into her official macroeconomic policy agenda, she can achieve a superior pathway for national income and a reduced carbon burden.
Citation - WoS: 12
Citation - Scopus: 15
Transforming Türkiye's Power System: An Assessment of Economic, Social, and External Impacts of an Energy Transition by 2030
(Elsevier, 2023) Acar, Sevil; Kat, Bora; Rogner, Mathis; Saygin, Deger; Taranto, Yael; Yeldan, A. Erinc
Türkiye has the long-term goal of transforming its power system to one that is cleaner, more secure and more affordable. According to this paper's scenario analyses, low-cost renewables can supply 55% of T & uuml;rkiye's total electricity demand. Coupled with the electrification of end-use sectors, energy efficiency can reduce total power demand by 10% compared to a business as usual scenario by 2030. The paper assesses the social, economic, and environmental impacts of this transformation by soft linking a power system model with an applied computable general equilibrium model, using an updated input and output dataset, and employing a novel analysis of job creation and fossil fuel externalities. The power system transformation significantly improves social welfare with net socioeconomic benefits estimated at 1% of GDP by 2030. Positive impacts include a reduction in human health and climate change externalities by a third, which are further enhanced by wage income growth that is driven by higher skilled and better paid jobs. A carbon tax emerges as a critical instrument to realize these benefits whilst reducing the power sector's emissions to 2030. The assessment should be expanded with more ambitious clean energy technology deployment for the entire energy system to operationalize T & uuml;rkiye's Paris-aligned 2053 net-zero emission target and just transition policies.