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Assessment into the nexus between load capacity factor, population, government policy in form of environmental tax: accessing evidence from Turkey

Festus Victor Bekun (Department of Logistics Management, Faculty of Economics Administrative and Social Sciences, Istanbul Gelisim University, Istanbul, Turkiye; University of Economics and Human Sciences, Warsaw, Poland; Faculty of Economics and Administrative Sciences, Recep Tayyip Erdogan University, Rize, Türkiye and Research Center of Development Economics, Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan)
Ashutosh Yadav (Department of Humanities and Social Sciences, National Institute of Technology Patna, Patna, India and School of Business, University of Petroleum and Energy Studies (UPES), Dehradun, India)
Joshua Chukwuma Onwe (School of Financial and Business Management Studies, Federal Polytechnic Ohodo, Nsukka, Nigeria)
Michael Provide Fumey (School of Public Policy and Administration, Northwestern Polytechnical University, Xi’an, China)
Mahsum Ökmen (Department of Economics, Faculty of Economics and Administrative Sciences, Doğuş University, İstanbul, Türkiye)

International Journal of Energy Sector Management

ISSN: 1750-6220

Article publication date: 17 December 2024

144

Abstract

Purpose

Over the last decades, the need for sustainable energy production and consumption has been heavily discussed. However, there has been no consensus in the extant literature. Thus, to this end, this study aims to explore the long-run and causality connection among disaggregated energy consumption, environmental tax and economic growth in a carbon-function framework for Turkey.

Design/methodology/approach

This study uses annual frequency data for econometrics analysis. To this end, our analysis utilizes the autoregressive distributive lag (ARDL) technique for cointegration and long-run analysis, while the Granger causality was used for causality direction.

Findings

Economic growth drives Turkey’s Load Capacity Factor (LCF), indicating energy efficiency is linked to economic performance. Renewable energy boosts LCF, while nonrenewable energy hinders it. Population growth positively affects energy efficiency, but environmental taxes have minimal impact, suggesting policy reform is needed. These outcomes have far-reaching implications for macroeconomic policies and environmental sustainability in Turkish economy energy mix amidst its growth path.

Research limitations/implications

The findings suggest the need for policy reforms prioritizing renewable energy investments to enhance Turkey’s energy efficiency and sustainability. Additionally, the current environmental tax structure requires reevaluation to support sustainable energy practices better. These policy changes are crucial for balancing Turkey’s economic growth with environmental goals, ensuring a more sustainable energy future.

Originality/value

This study explores the role of government policy in form of environmental tax in environmental performance in Turkey.

Keywords

Citation

Bekun, F.V., Yadav, A., Onwe, J.C., Fumey, M.P. and Ökmen, M. (2024), "Assessment into the nexus between load capacity factor, population, government policy in form of environmental tax: accessing evidence from Turkey", International Journal of Energy Sector Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJESM-08-2024-0032

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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