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Abstract
The aim of this paper is to evaluate the economic and environmental effects of increasing indigenous coal share in electricity generation by using extended input–output analysis. The policy scenario is a $1 million increase in demand for investment in the coal mining sector. In order to analyze this policy option, we specifically developed an extended input–output analysis associated with disaggregating the electricity sector into electricity generation transmission and distribution and the mining sector into coal and oil–gas mining. Furthermore, we use a range of key economic and environmental indicators to evaluate the effects of increasing indigenous coal production on these indicators. The results indicate that the $1 million increase in final demand for indigenous coal produces an increase in economic output for all sectors of $1,389,241 and an increase in total greenhouse gases of 229,572 CO2-equivalents (kg CO2-e) as well.
Highlights
The results of analysis are presented in the following three subsections based on impacts of more indigenous coal use on economic and environmental indicators
Increasing indigenous production of coal has two interrelated impacts: industry output growth impact and thereby energy impact that induce a change in greenhouse gas (GHG) mainly carbon emission and air pollution level as well
It is certain that extending the traditional input–output analysis by combining economic and environmental indicators in physical and monetary units has provided a consistent tool for analyzing energy, economy, and environment interactions at sectoral levels
Summary
Whole country because of rising per capita electricity demand (IEA, 2016). Over the past quarter century, the average annual growth rates of electricity generation and demand were both around 6.5% while the generation capacity grew by about 6.1%. Per capita electricity demand grew annually by 6.1% (Table 1). Turkey’s electricity is generated mainly from fossil fuels including natural gas, coal, and oil, which accounts for about 79% of total generation in 2014. The major fuel in electricity generation is natural gas (47.9%), followed by coal (30.3%), Population (thousands) GDP(current USD, million) Installed power capacity (MW) Gross electricity generation (GWh) Gross electricity demand (GWh).
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