Ecological unequal exchange between Turkey and the European Union: An assessment from value added perspective


TUNÇ G. İ. , AKBOSTANCI ÖZKAZANÇ E. , AŞIK S.

Ecological Economics, vol.192, 2022 (Journal Indexed in SCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 192
  • Publication Date: 2022
  • Doi Number: 10.1016/j.ecolecon.2021.107269
  • Title of Journal : Ecological Economics
  • Keywords: Ecological unequal exchange, Trade in value added, Greenhouse gas emissions, Turkey, European Union, Bilateral trade, INTERNATIONAL-TRADE, GLOBAL TRADE, CARBON, CONSUMPTION, IMPACTS, CHAINS, NORTH, SOUTH

Abstract

© 2021 Elsevier B.V.The greenhouse gas (GHG) emission reduction policies focus on production and consumption perspectives by primarily concentrating on emissions embodied in demand and supply chains. However, the recent literature on trade points out the importance of the value added content of trade. With globalization, more and more components of final goods are produced in different regions of the world. Therefore, the emission responsibilities are masked by the “value added chains” of final goods that are traded. In this study we investigate the GHG emissions embodied in value added content of Turkish bilateral trade with the European Union (EU) within the context of Ecological Unequal Exchange (EUE) theory. With the model developed, it is possible to trace the direct and indirect emissions along the domestic and foreign value added chains. The analysis is conducted for 22 sectors for the years 1995–2015 using the OECD Trade in Value Added Statistics and World Input-Output Database. Even though Turkey has a trade deficit with the EU for 1995–2015 period, the empirical results of this study indicate that emissions resulting from the exporting activity of Turkey to the EU exceed the EU's GHG emissions resulting from the exporting activity of the EU to Turkey.