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Hidden subsidies and behavioral targeting: Insights from Türkiye's three-pillar energy poverty strategy (2019–2023)

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  • Emre, Tamer

Abstract

This paper examines Türkiye's three-pillar energy-poverty strategy (2019–2023), focusing on the Maximum Settlement Price (AUF), a universal market-wide tariff intervention functionally similar to an inframarginal cap. Using high-frequency EPİAŞ prices and DisCo-level indicators (disconnections, consumption), the analysis shows that AUF acts as an implicit consumer subsidy and, together with the 240-kWh tier, improves affordability for low-consumption users, especially in Eastern and Southeastern regions. Reframing a mechanism often criticized for lowering producer revenues, the study documents its distributional footprint on vulnerable households. By linking market design to energy-poverty outcomes, it offers a cost-effective, replicable template for behavior-informed targeting under crisis conditions.

Suggested Citation

  • Emre, Tamer, 2025. "Hidden subsidies and behavioral targeting: Insights from Türkiye's three-pillar energy poverty strategy (2019–2023)," Utilities Policy, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:juipol:v:97:y:2025:i:c:s0957178725001584
    DOI: 10.1016/j.jup.2025.102043
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    References listed on IDEAS

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