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Towards sustainable lignite consumption in Turkey and a welfare analysis

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  • Olfa Jaballi

    () (EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Sebnem Sahin

    () (EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, OECD - Environment Directorate)

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.

Suggested Citation

  • Olfa Jaballi & Sebnem Sahin, 2005. "Towards sustainable lignite consumption in Turkey and a welfare analysis," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00194716, HAL.
  • Handle: RePEc:hal:cesptp:halshs-00194716
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00194716
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    References listed on IDEAS

    as
    1. Ayong Le Kama, Alain D., 2001. "Sustainable growth, renewable resources and pollution," Journal of Economic Dynamics and Control, Elsevier, vol. 25(12), pages 1911-1918, December.
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    More about this item

    Keywords

    sustainable consumption; Dynamic welfare; exhaustible resource; sustainable consumption.; Bien-être social; consommation soutenable; ressource épuisable.;

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General

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