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Towards sustainable lignite consumption in Turkey and a welfare analysis

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Author Info
Olfa Jaballi () (EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - CNRS : UMR8594 - Université Panthéon-Sorbonne - Paris I)
Sebnem Sahin () (EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - CNRS : UMR8594 - Université Panthéon-Sorbonne - Paris I, OECD - Environment Directorate)

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Abstract

Sustainable consumption is at the center of sustainable development that every country seems to want. One of the great challenges of this century must be to understand what drives the consumption and how we can reduce consumption through increased efficiency. However consumption is not simply determined by population growth, which is commonly assumed to be a key cause of unsustainable consumption, but also by economic activity, technology choices, social values, institutions and policies. In this paper, we focus our analysis on lignite consumption in Turkey as an exhaustible natural resource and we assume that the consumption is only the ultimate end of the economic activity. Some improvments of the Weitzman model (1976) are proposed by introducing an environmental preference parameter into the model to complement his interpretation of welfare. Our aim is to pass from theory to practical applications by presenting some modest empirical results. Our model is constructed under GAMS for the period 1980-2080 using Turkish data and leads to the interesting result that an environmental taxation policy can lead to a social welfare increase in Turkey.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00194716_v1.

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Date of creation: Apr 2005
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Handle: RePEc:hal:cesptp:halshs-00194716_v1

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Related research
Keywords: Dynamic welfare; exhaustible resource; sustainable consumption.;

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  5. Heal, G., 1998. "Valuing the Future: Economic Theory and Sustainability," Papers 98-10, Columbia - Graduate School of Business.
  6. Jonathan M. Harris, 2001. "Basic Principles of Sustainable Development," Development and Comp Systems 0106006, EconWPA. [Downloadable!]
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  8. Krautkraemer, Jeffrey A, 1985. "Optimal Growth, Resource Amenities, and the Preservation of Natural Environments," Review of Economic Studies, Blackwell Publishing, vol. 52(1), pages 153-70, January. [Downloadable!] (restricted)
  9. Bergh, Jeroen C.J.M. van den & Ferrer-i-Carbonell, Ada, 1999. "Economic theories of sustainable consumption," Serie Research Memoranda 0055, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
  10. Kenneth Arrow et al., 2004. "Are We Consuming Too Much?," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 147-172, Summer. [Downloadable!] (restricted)
  11. Weitzman, Martin L, 1976. "On the Welfare Significance of National Product in a Dynamic Economy," The Quarterly Journal of Economics, MIT Press, vol. 90(1), pages 156-62, February. [Downloadable!] (restricted)
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  12. Asheim, Geir & Buchholz, Wolfgang, 2003. "A General Approach to Welfare Measurement through National Income Accounting," Memorandum 32/2002, Oslo University, Department of Economics. [Downloadable!]
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  13. Solow, Robert, 1993. "An almost practical step toward sustainability," Resources Policy, Elsevier, vol. 19(3), pages 162-172, September. [Downloadable!] (restricted)
  14. Asheim, Geir, 2003. "Green national accounting with a changing population," Memorandum 06/2003, Oslo University, Department of Economics. [Downloadable!]
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