This paper examines the possibility of reducing greenhouse gas emissions in Turkey and estimates its costs in a number of sectors of the economy. The main output of this paper is introduced as a “marginal cost reduction curve” or MACC for Turkish economic sectors. A MACC is a graphical representation of the extent of emissions reductions that can be achieved through carbon pricing made in different rates across the economy, and the benefits or costs associated with reducing emissions per ton.
In order to build the MACCs for Turkish economy, it is used computable general equilibrium(CGE) model. The scenarios of the model is to run the model under different constraints corresponding to various carbon taxes, such as $1, $5, $10, $25, $50, $75, and $100 per ton of carbon emission. For each carbon tax set, the model obtains the corresponding national carbon reduction levels. The levels of mitigation have been identified as a function of carbon taxes for the economy.