Impact of carbon border adjustment mechanism on iron-steel and cement sectors in Turkey: a social accounting matrix multiplier analysis

2022-5
Kılınç, Ayşegül
The iron-steel and cement sectors are essential elements of the global economy and also significant greenhouse gas (GHG) emitters. The most important GHG emission sources of the industrial processes and product use (IPPU) sector in Turkey are CO2 emissions from these two sectors, nearly three quarters of total emissions by IPPU. Emissions by IPPU have become critical especially after the European Green Deal (EGD) and the concomitant carbon border adjustment mechanism (CBAM). Although the impact of carbon pricing on national economies are widely researched, there are very few studies that focus on carbon pricing in Turkey. In this thesis, I first construct an up-to-date social accounting matrix (SAM) of the Turkish economy for 2019. Next, I investigate the carbon cost and potential impacts of CBAM by using SAM multiplier analysis. The results show that carbon cost of CBAM on the Turkish exporters, under three different carbon price scenarios (€45-7€1-€100/tCO2e), ranges between €1.8-€2.8-€4 billion annually. The results of SAM multiplier analysis indicate that decrease in iron-steel exports by €0.22-€0.36-€0.50 billion leads to €0.17-€0.27-€0.38 billion decrease in economywide GDP and €0.42-€0.67-€0.94 billion decrease in total output, under the three price scenarios and without considering free allocation. Decrease in cement exports by €0.05-€0.08-€0.12 billion leads to €0.06-€0.10-€0.14 billion decrease in GDP and €0.14-€0.22-€0.37 billion decrease in total output under the same price levels and allocation policy. This thesis also provides an evaluation of free allocation under CBAM for iron-steel and cement sectors and discusses the results from the perspective of free allocation.

Suggestions

Impact of Urban Street Network on BIPV Generation Capacity of Buildings
Duran, Ayca; Akgül, Çağla; Gürsel Dino, İpek (2022-10-11)
Climate change necessitates a critical reconsideration of the built environment since buildings are among the top fossil fuel consumers. Solar energy generation through building integrated photovoltaic (BIPV) systems is one of the most common onsite energy generation methods. However, many factors regarding urban morphology can negatively affect BIPV generation. Urban block typologies and spatial patterns are commonly studied descriptive metrics of an urban morphology that affect the solar energy potential....
Impact of climate change on the existing residential building stock in Turkey: An analysis on energy use, greenhouse gas emissions and occupant comfort
Gürsel Dino, İpek; Akgül, Çağla (Elsevier BV, 2019-10-01)
With the growing need for residential buildings as a result of population growth, the building sector is a high-priority area in climate change due to its large share of CO2 emissions, the significant energy saving opportunities it represents, and the increasing expectations for occupant comfort. This paper presents the results of climate change impact assessment on a typical mid-rise residential building in four representative cities with different climatic characteristics in Turkey. Three different scenar...
Is there a causal effect between agricultural production and carbon dioxide emissions in Ghana?
Owusu, Phebe Asantewaa; Asumadu-Sarkodie, Samuel (2017-03-01)
According to FAO, "agricultural sectors are particularly exposed to the effects of climate change and increases climate variability". As a result, the study makes an attempt to answer the question: Is there a causal effect between agricultural production and carbon dioxide emissions in Ghana? By employing a time series data spanning from 1960 to 2015 using the Autoregressive Distributed Lag method. There was evidence of a long-run equilibrium relationship running from copra production, corn production, gree...
Impact of carbon leakage on Turkish cement export: a gravity model approach
Doğan, Damla; Akbostancı Özkazanç, Elif; Department of Economics (2015)
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 leakag...
Effect of Conditioning Time and Temperature on the Volumetrics and Stability of Dry Process Crumb Rubber Modified Warm Asphalt Mixtures
Öztürk, Hande Işık (2017-11-17)
Environmentally friendly techniques for asphalt mixtures are developed for greater savings in natural resources, energy and economy. This paper focuses on the association of: i) Warm Mix Asphalt (WMA) ii) Dry Process Crumb Rubber (DryCR). WMA is a widely used technology that allows significant reduction in the mixing temperature (MT) and compaction temperature (CT) of the asphalt mixtures. Additionally, they have various acknowledged engineering, environmental and economic benefits. Similarly, CR modificati...
Citation Formats
A. Kılınç, “Impact of carbon border adjustment mechanism on iron-steel and cement sectors in Turkey: a social accounting matrix multiplier analysis,” M.S. - Master of Science, Middle East Technical University, 2022.