PUBLIC POLICIES IN RENEWABLE ENERGY AND TURKEY
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DOI:
https://doi.org/10.15637/jlecon.251Keywords:
Renewable Energy, Public Policies, Government Support, Incentive MechanismAbstract
The negative effects stemmed from meeting the energy demand via fossil fuels have reached serious dimensions today. Other than causing insecurity of energy supply, the intensive use of fossil fuels also leads to severe environmental problems such as global warming and climate change. In this context, countries have increased their attentions to renewable energies to preserve the ecological balance of earth and ensure security of energy supply.
The aim of this study is to systematically examine the public policies made for renewable energies such as incentive and support mechanisms and evaluate the effects and efficiency of these mechanisms. In this study, the renewable energy policy in Turkey and incentive mechanisms used as a tool to conduct this policy was explained. In the empirical part, the relationship between incentive mechanisms and renewable energy was analyzed using panel data techniques. Annual data sampled from 28 EU member countries and Turkey for the years between 1990 and 2015 was used. Four incentive mechanisms, including feed-in tariffs, quotas, tenders and tax incentives, have been included in the model. Based on empirical results, among incentive mechanisms only feed-in tariffs and quotas have a significant and positive effect on renewable energy. An increase in either of these incentive mechanisms will lead an increase in the use of renewable energy.
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