EXPLORING CARBON TAXES AS CATALYSTS FOR FINANCING NUCLEAR POWER PROJECTS IN TURKE

Year 2023, , 31 - 37, 15.01.2024

Ahmet Gokhan Sahın Güray Küçükkocaoğlu

https://doi.org/10.17261/Pressacademia.2023.1847

Abstract

Purpose- Climate change and the urgent need to transition to low-carbon energy systems have led nations worldwide to seek innovative financing mechanisms for sustainable energy sources. This article delves into the feasibility of leveraging carbon taxes as a potent financial instrument to promote nuclear power projects, with a particular focus on Small Modular Reactors (SMRs), in Turkey.
Methodology- This study outlines a methodology for designing a tailored carbon tax framework, addresses challenges, and highlights the strategic importance of this approach. Concurrently, an empirical case study has been conducted to introduce a carbon tax in Turkey to show the fundamentals of calculating carbon tax in Turkey.
Findings- By aligning carbon taxes with nuclear power initiatives, Turkey can reduce emissions, secure funding, enhance competitiveness, and contribute to global climate goals, paving the way for a sustainable energy future.
Conclusion- Implementing carbon pricing mechanisms could improve Turkey's investments in SMR power plants and reinforce its stance towards a more environmentally sustainable energy future.

Keywords

Green financing, nuclear power, sustainable investment, carbon taxes, financial

References

• Asia-Pacific Economic Cooperation. (2011, November 10). 2010 APEC Ministerial Meeting. https://www.apec.org: https://www.apec.org/meeting-papers/annual-ministerial-meetings/2010/2010_amm
• Boarin, S., M.E. , R., Mancini, M., & Locatelli, G. (2015). Handbook of Small Modular Nuclear Reactors. Economics and Financing of Small Modular Reactors (SMRs), 239-277.
• CBC News. (2007, June 7). Quebec to collect nation's 1st carbon tax. cbc.ca: https://www.cbc.ca/news/canada/montreal/quebec-to-collect-nation-s-1st-carbon-tax-1.684888
• Höhne, N., Khosla, S., Fekete, H., & Gilbert, A. (2012). Mapping of Green Finance Delivered by IDFC Members in 2011. Köln: ECOFYS Germany GmbH.
• Kessides, I., & Kuznetsov, V. (2012). Small modular reactors for enhancing energy security in developing countries. Sustainability, 1806-1832.
• Lenain, P. (2022, August 26). Denmark’s Green Tax Reform: G20 Countries Should Take Notice . cepweb.org: https://www.cepweb.org/denmarks-green-tax-reform-g20-countries-should-take-notice/
• Lovering, J. (2020). Evaluating changing paradigms across the nuclear industry. Pittsburgh, PA: Carnegie Mellon University.
• Mengden, A. (2023, September 5). Carbon Taxes in Europe. taxfoundation.org: https://taxfoundation.org/data/all/eu/carbon-taxes-in-europe-2023/
• Ramana, M., & Mian, Z. (2014). One size doesn’t fit all: Social priorities and technical conflicts for small modular reactors. Energy Research & Social Science, 115-124.
• Soejachmoen, M. P. (2017). Financing the Green Transformation: How to Make Green Finance Work in Indonesia. Bulletin of Indonesian Economic Studies, 222-224.
• Temiz Enerji Vakfi. (2022, February 10). Türkiye’nin enerji dönüşümü için yıllık yatırım miktarı yaklaşık 7 milyar dolar. temizenerji.org: https://temizenerji.org/2022/02/10/turkiyenin-enerji-donusumu-icin-yillik-yatirim-miktari-yaklasik-7-milyar-dolar/
• United Nations Environment Programme. (2023, October 7). Green Financing: https://www.unep.org/regions/asia-and-pacific/regional-initiatives/supporting-resource-efficiency/green-financing
• World Bank. (2014). State and Trends of Carbon Pricing. Washington, DC: World Bank.
• Zadek, S., & Flynn, C. (2013). South-Originating Green Finance:Exploring the Potential. Geneva International Finance Dialogues. Geneva .