Ebru Voyvoda

Policy Analysis: Toward a Green Development Pathway for the Peripheral World

This chapter uses the analytical model described in Chapter 4 to quantitatively investigate the set of viable macroeconomic policy instruments for combating climate change, and addresses a set of duality characteristics of the Turkish economy. The chapter initially characterizes the business-as-usual pathway over the first half of the 21st century (until 2040), and then studies a strategic policy scenario to attain multiple objectives of reduced informalization, more equitable regional social welfare, and environmental abatement. The results indicate that by pursuing a coherent macroeconomic strategy toward taxing fossil fuel use and earmarking fiscal revenues for expansion of the renewables sector strategically located within a regional development program, Turkey can mitigate gaseous emissions and expand its income and employment within a more equitable and sustained development pathway.

Patterns of Growth in Dual Economies: Challenges of Development in the 21st Century

This chapter attempts to examine patterns of growth in dual economies within the context of challenges of development for the 21st century. To this end, we first study the broad contours of growth and adjustments in the global economy, before, during, and after the 2008–09 global crisis. Here four general patterns emerge, namely, stagnation of wage incomes; declining investment effort; consequent decline in the rates of growth of productivity; and a compensatory rise in corporate and household indebtedness. The chapter continues with a deeper investigation of the structural sources of deindustrialization and widening duality in both labor markets and technological diffusion. Finally, we link all these ideas with the macroeconomics of global climate change and implications on the feedback effects of the economy-resource use-environmental degradation nexus.

Modeling for Green Growth: Environmental Policy in a Dualistic Peripheral Economy

The chapter introduces the main components of the applied general equilibrium model to represent the dual structure of Turkey. It discusses the distinguishing features and its contribution to the modeling literature with its unique emphasis on duality, regionalization and social relevance. It further conceptualizes a Social Accounting Matrix for the Regionally Fragmented Dual Economy to accommodate Turkish macro-level data. Given the theoretical structure of the CGE model, the main data sources of the modeling paradigm are introduced and tabulated within the discipline of Walrasian general equilibrium. The unique contribution of the chapter is its accommodation of regional differentiation and of dualistic labor markets and preparation for the database in social accounting matrix format. This chapter purports to extend the traditional neoclassical (Walrasian) growth modeling based on one-sector depictions of the aggregate economy with a balanced growth path notion towards the steady state, and as such, we aim to contribute to the empirics of the traditional growth paradigm via questioning the long run equilibrium path way towards a balanced steady state.

Energy and Environmental Policy Against Climate Change in Turkey

Abstract Based on the structure of the economy in general but especially focusing on the duality patterns laid out in Chapter 2, this chapter first examines the recent energy and environment statistics in Turkey, and second, evaluates the existing (energy and environmental) policy framework and future potential of these policies in terms of their implications for climate change. We argue that the lack of mitigation at the aggregate national level finds its manifestation in the widening gap across regional GHG emissions as a consequence of the dual economic structure and the lack of differential policies across the regions.