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Article

Financing Targeted Basic Income Through Carbon Taxation: A Simulation for Türkiye

by
Mete Dibo
1,*,
Özgür Emre Koç
1,
Florina Oana Virlanuta
2,*,
Neslihan Koç
1,
Radu Octavian Kovacs
3,
Suna Şahin
4,
Valentina-Alina Vasile (Dobrea)
3 and
Marian-Gigi Mihu
3
1
Department of Public Finance, Faculty of Economics and Administrative Sciences, Hitit University, Çorum 19030, Türkiye
2
Department of Economics, Faculty of Economics and Business Administration, “Dunărea de Jos” University of Galați, 800008 Galati, Romania
3
Doctoral School of Economic Sciences, Faculty of Economics and Business Administration, “Dunărea de Jos” University of Galați, 800008 Galati, Romania
4
International Trade and Logistic Department, Istanbul Yeni Yuzyil University, İstanbul 34010, Türkiye
*
Authors to whom correspondence should be addressed.
Sustainability 2025, 17(17), 7621; https://doi.org/10.3390/su17177621 (registering DOI)
Submission received: 18 July 2025 / Revised: 19 August 2025 / Accepted: 20 August 2025 / Published: 23 August 2025

Abstract

This research evaluates the financial sustainability of a basic income (BI) model funded through carbon taxation in Türkiye. Unlike classical BI models that provide unconditional transfers to everyone, this study proposes an income support scheme targeted only at those below the poverty line. The model seeks to balance limited resources with the goal of social equity. In this scenario, sectoral carbon taxation evolves progressively. The tax starts with the energy sector, which has the highest emissions, and subsequently shifts to industry and other sectors. Emissions will be reduced by 1% each year, while a carbon tax that starts at USD 12 per ton will be dynamically converted to TL based on the increasing exchange rate year by year. The simulation looks at 2023–2050 and computes annual revenue and expenditure forecasts for the period. The findings indicate that the revenues from carbon taxation are not only sufficient to cover the prioritized expenditure in the targeted basic income (TBI) scheme but also will lead to fiscal surplus in the long run. The research proposes for the first time a framework which integrates social protection and the environmental taxation of carbon, synergizing policies aimed at alleviating income disparity and climate change within Türkiye’s context.
Keywords: carbon taxation; targeted basic income; fiscal sustainability; poverty reduction; environmental fiscal policy carbon taxation; targeted basic income; fiscal sustainability; poverty reduction; environmental fiscal policy

Share and Cite

MDPI and ACS Style

Dibo, M.; Koç, Ö.E.; Virlanuta, F.O.; Koç, N.; Kovacs, R.O.; Şahin, S.; Vasile, V.-A.; Mihu, M.-G. Financing Targeted Basic Income Through Carbon Taxation: A Simulation for Türkiye. Sustainability 2025, 17, 7621. https://doi.org/10.3390/su17177621

AMA Style

Dibo M, Koç ÖE, Virlanuta FO, Koç N, Kovacs RO, Şahin S, Vasile V-A, Mihu M-G. Financing Targeted Basic Income Through Carbon Taxation: A Simulation for Türkiye. Sustainability. 2025; 17(17):7621. https://doi.org/10.3390/su17177621

Chicago/Turabian Style

Dibo, Mete, Özgür Emre Koç, Florina Oana Virlanuta, Neslihan Koç, Radu Octavian Kovacs, Suna Şahin, Valentina-Alina Vasile (Dobrea), and Marian-Gigi Mihu. 2025. "Financing Targeted Basic Income Through Carbon Taxation: A Simulation for Türkiye" Sustainability 17, no. 17: 7621. https://doi.org/10.3390/su17177621

APA Style

Dibo, M., Koç, Ö. E., Virlanuta, F. O., Koç, N., Kovacs, R. O., Şahin, S., Vasile, V.-A., & Mihu, M.-G. (2025). Financing Targeted Basic Income Through Carbon Taxation: A Simulation for Türkiye. Sustainability, 17(17), 7621. https://doi.org/10.3390/su17177621

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