Demand and supply-driven carbon linkages

What is it about?

Demand and supply are the two main aspects of the economy. This paper presents turkey's demand and supply-driven industrial carbon linkages. The paper also develops a new method for estimating demand and supply-driven industrial carbon linkages.

Featured Image

Photo by Patrick Hendry on Unsplash

Photo by Patrick Hendry on Unsplash

Why is it important?

This research is novel in several respects. First of all, there is not much literature available on the inter-sectoral carbon linkages of the Turkish economy. Contrarily to the usual demand-driven approach, our study reports both demand and supply-side emissions under a direct multiplier, the total carbon linkage impact (Original HEM) and the impact of backward and forward CO2 linkages on the remaining sectors. We also restructured the so-called modified hypothetical extraction method (MHEM) by applying the Ghosh model for the measurement of net forward (pushed) emissions. The Leontief model was used only for the measurement of net backward (pulled) emissions. In addition, we have introduced sectoral emissions from both internal purchases (in-sector demand emissions) and sales (in-sector supply emissions). We call it a hybrid modified hypothetic extraction model. Finally, it presents policy implications on the basis of our numerical findings.

Perspectives