The Model where denotes rents from natural gas, rents from renewable energies, The role of policy and market design constraints, the public good, H the political pay- as exemplified in the YEKA model, is crucial for the off from the provision of the public good, and C speed and effectiveness of green transitions. [...] The financial constraint relates to the to utilize the green transformation of the econo- liquidity available for the implementation of pro- my in order to maximize its probability of reelec- jects in the areas of renewable energies and natural tion, and thus, this becomes the government’s own gas such that: rent-seeking strategy. [...] by the government on energy companies, corporate profits from natu- Hence, the solvency of the renewable project and ral gas and renewable energies, respectively, and its potential to expand the coverage of electricity the financial liquidity available for demand are crucial for the reduction of the option natural gas and renewable energies, respectively. [...] At the same time, the progress of the green power transformation • The introduction of bottom-up financing in the Turkish economy, particularly through the schemes with the participation of local banks, two waves of YEKA auctions for wind power, have regional and local governments, and interna- strengthened the role of the central government tional institutions will disentangle green tran- and the. [...] The ex-ante shares of natural gas and renew- ropean Union, the support of the European able energies in the economy predict the ratio of Investment Bank, and the participation of bi- optimal rents that the government can derive from lateral and multilateral aid donors and interna- those two sectors toward the objective of its sur- tional financial agencies would give credibility vival in office.
- Pages
- 12
- Published in
- Türkiye
