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Economics of climate change and green employment: A general equilibrium investigation for Turkey

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  • Kolsuz, Gunes
  • Yeldan, A. Erinc
Abstract
This paper quests for the intrinsic complementarities among environmental pollution abatement, induced technological innovation to combat human-induced climate change, targeted expansions for green employment, and enhanced welfare through gains in private income. Utilizing data from the Turkish economy, we implement an applied general equilibrium model to study the synergies between environmental abatement instruments and policies towards sustaining green jobs. Our results are indicative that by a proper mix of environmental taxation and technological and institutional innovations, Turkey can serve as an example for a host of developing countries in setting the stage for a pro-employment and eco-friendly, sustained growth path. We further show that for the successful implementation of a carbon emissions mitigation strategy, elimination of the burden of existing labor taxes and factor market distortions are crucial. Our analysis suggests that complemented with a strategy of substitution of environmental taxes against the existing distortionary labor taxes, costs abatement on domestic income and employment could be negligible.

Suggested Citation

  • Kolsuz, Gunes & Yeldan, A. Erinc, 2017. "Economics of climate change and green employment: A general equilibrium investigation for Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1240-1250.
    • Handle: RePEc:eee:rensus:v:70:y:2017:i:c:p:1240-1250
    DOI: 10.1016/j.rser.2016.12.025
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    References listed on IDEAS

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    4. Wen, Jun & Zhao, Xin-Xin & Fu, Qiang & Chang, Chun-Ping, 2023. "The impact of extreme weather events on green innovation: Which ones bring to the most harm?," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    5. Johansson, R. & Meyer, S. & Whistance, J. & Thompson, W. & Debnath, D., 2020. "Greenhouse gas emission reduction and cost from the United States biofuels mandate," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).
    6. Zhang, Jinning & Wang, Jianlong & Yang, Xiaodong & Ren, Siyu & Ran, Qiying & Hao, Yu, 2021. "Does local government competition aggravate haze pollution? A new perspective of factor market distortion," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
    7. Fery Andrianus & Hefrizal Handra & Putri Ayu & Pipin Dwi Safitri & Ria Vinola K. Cahyadi, 2024. "The Impact of Implementing a Carbon Tax on Welfare: Case Study of Indonesia and The Other ASEAN Member Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 647-657, May.

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    More about this item

    Keywords

    Climate change; Green jobs; Computable general equilibrium; Turkey;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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