Abstract:

Accordingly, with the decisions taken under Paris Conference-2015, Turkey has committed to constraint greenhouse gas emissions. An environmentally efficient way to do this is controlling industrial processes and fossil fuel use. Turkey has also determined her energy use targets as documented in Energy Strategy Document in which partial substitution of natural gas used in electricity production with some other energy sources is suggested as an alternative instrument in reducing greenhouse gas emissions. This study aims at developing a policy package to reduce total greenhouse gas emissions and to carry out the environmental and economic impact analysis of the policy package. Findings suggest that energy substitution will not be enough to achieve the targets proposed under Paris Conference commitments. Carbon taxing should be applied besides energy substitution, but rather on all industries it should be applied on selected polluter industries. In this way, while environmental targets are reached contraction in the economy will be less.

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