Potential impacts of COVID-19 pandemic on Turkish economy and its carbon dioxide emissions: an extended input-output analysis

Abstract

COVID-19 pandemic has lead to societal transformation in terms of economic, social, and environmental behaviours. Like other countries, Turkey has suffered from the pandemic. The aim of this study was to investigate the impacts of COVID-19 on the following major indicators: total hours worked by employees, number of employees, labour compensation, capital compensation, gross value added and nominal capital stock at current basic prices, and carbon dioxide (CO2) emissions. Throughout the study, an extended input-output (EIO) analysis was employed. The scope of the study was based on the decline in economic activities in the restricted sectors such as accommodation and food services, travel agencies, tour operators and other reservation and related services, air transport, land tourism, water transport, and leisure activities. Three main scenarios, i.e., fast recovery scenario, continuing slowdown scenario, and economic recession scenario, were set to analyse the effects of COVID-19 on the Turkish economy and CO2 emissions.