Impact of carbon leakage on Turkish cement export: a gravity model approach

Doğan, Damla
Global climate agreements which have been agreed on to take measure against climate change problem evaluate and classify parties with differentiated responsibilities. This differentiation causes asymmetric climate policies among countries. The major source of discussion is the burden of climate policies in terms of production cost increase. This burden produces the risk of distortion in competitiveness and leads countries to provide emission intensive products from outside. This risk is called carbon leakage in the literature and it can be observed within trade flows. In this respect, cement industry draws attention because of high level of consumption and excessive export volume in Turkey. This thesis investigates the existence of the carbon leakage in the cement export flows of Turkey. Gravity model which is frequently preferred in the international trade literature is conducted to analyze this effect. Model estimates cement exports within the panel data framework and it covers 118 countries for the period of 2001-2012. Estimation results indicate that countries which have emission targets, have a positive effect on the export flow of Turkish cement industry. This finding confirms the existence of carbon leakage in the industry


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Citation Formats
D. Doğan, “Impact of carbon leakage on Turkish cement export: a gravity model approach,” M.S. - Master of Science, Middle East Technical University, 2015.