IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i11p4851-d1664121.html
   My bibliography  Save this article

Motivating Green Transition: Analyzing Fuel Demands in Turkiye Amidst the Climate Crisis and Economic Impact

Author

Listed:
  • Emine Coruh

    (Department of Civil Engineering, College of Engineering and Natural Science, Gümüşhane University, Gümüşhane 29100, Türkiye)

  • Mehmet Selim Yıldız

    (Department of Agricultural Economics, College of Agriculture, Atatürk University, Erzurum 25030, Türkiye)

  • Faruk Urak

    (Department of Economics, College of Economics and Administrative Sciences, Bitlis Eren University, Bitlis 13000, Türkiye)

  • Abdulbaki Bilgic

    (Department of Agricultural Economics, College of Agriculture, Bursa Uludağ University, Bursa 16059, Türkiye)

  • Vedat Cengiz

    (Department of Economics, College of Political Sciences, Kocaeli University, Kocaeli 41001, Türkiye)

Abstract

Decarbonizing the transportation sector is critical for sustainable development, particularly in rapidly urbanizing countries like Turkiye. This study analyzes fuel demand elasticities for diesel, gasoline, and LPG across 12 NUTS-1 regions of Turkiye in 2022, using a panel random effects SUR approach. The model accounts for regional variation and fuel interactions, producing robust estimates that uncover significant spatial and temporal differences in consumption patterns. Uniquely, diesel demand displays a significantly positive price elasticity, challenging the conventional assumption of inelasticity. Gasoline demand is moderately price-sensitive, while LPG appears relatively unresponsive. Strong cross-price elasticities—especially between diesel and gasoline—point to substitution effects that can inform more adaptive policy frameworks. Seasonal fluctuations and Istanbul’s outsized impact also shape national trends. These findings underscore the need for differentiated region- and fuel-specific strategies. While higher gasoline taxes may effectively reduce demand, lowering diesel and LPG use will require complementary measures such as infrastructure upgrades, behavioral incentives, and accelerated adoption of alternative fuels. The study advocates for regionally adjusted carbon pricing, removal of implicit subsidies, and targeted support for electric and hybrid vehicles. Aligning fiscal tools with actual demand behavior can enhance both the efficiency and equity of the transition to a low-carbon transportation system.

Suggested Citation

  • Emine Coruh & Mehmet Selim Yıldız & Faruk Urak & Abdulbaki Bilgic & Vedat Cengiz, 2025. "Motivating Green Transition: Analyzing Fuel Demands in Turkiye Amidst the Climate Crisis and Economic Impact," Sustainability, MDPI, vol. 17(11), pages 1-31, May.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:11:p:4851-:d:1664121
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/11/4851/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/17/11/4851/
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:11:p:4851-:d:1664121. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.