AN IMPLEMENTATION FOR THE FUTURE OF MOTOR VEHICLE TAX IN THE SHADOW OF THE PARIS CLIMATE SUMMIT: THE EXAMPLE OF TÜRKİYE
AN IMPLEMENTATION FOR THE FUTURE OF MOTOR VEHICLE TAX IN THE SHADOW OF THE PARIS CLIMATE SUMMIT: THE EXAMPLE OF TÜRKİYE

Summary/Abstract: Türkiye is committed to lowering its greenhouse gas emissions, adhering to the terms of the Paris Climate Agreement, which it has endorsed. In this context, there is significant interest in environmental tax reform that merges carbon regulation with reducing other taxes that are distorting. This study assesses the effects of motor vehicle tax (MVT), energy consumption, and economic growth on Türkiye’s carbon footprint from 1995 to 2020, framed by the Environmental Kuznets Curve (EKC). The research uses the ARDL technique to analyze time series data, and reveals that the EKC hypothesis does not apply. Additionally, the study finds that MVT, as an included variable in the EKC model, does not significantly influence the carbon footprint. It is crucial to acknowledge that all variables in the model interact and collectively influence the analysis of variable relationships. As a result, crafting policy recommendations on this matter requires a comprehensive, multidisciplinary approach. Therefore, adjusting and implementing MVT in a manner consistent with the objectives of the Paris Climate Agreement could serve as a pivotal strategy for advancing both Türkiye’s economic and environmental goals.

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