
Why Fossil Fuels Endure: Structural Constraints on Türkiye’s Green Energy Transition
Abstract
This article examines the institutional obstacles to the green shift in Türkiye. Based on the theoretical approach that combines state capitalism, path dependency, national innovation systems, and policy-feedback mechanisms, it explains how the tax revenues, education-labour market misalignments, and pre-leading status of the defence sector strengthen a crowding-out process that undermines green innovation and human-capital investments. The article not only provides the concept of fiscal lock-in as an insufficiently discussed and a vital aspect of fossil path dependency, but it also highlights indirect carbon rents in non-rentier states as a key process of policy inertia. It synthesises political economy and innovation system views, which adds to the literature on fossil lock-ins and energy transition governance. It also calls for a broader understanding of policy priorities beyond techno-fixes and insists on the need to capture structural aspects of a rapid energy transition, like fiscal policy, human capital trends, and innovation systems, to understand the inertia affecting a rapid transition of the energy mix.
Keywords:
Energy transition, State capitalism, Fossil lock-in, Policy feedback, Innovation systemsAI Acknowledgment
Generative AI or AI-assisted technologies were not used in any way to prepare, write, or complete essential authoring tasks in this manuscript.
Declaration of Conflicting Interests
The authors declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.
Funding
The author(s) received no financial support for the research, authorship, and/or publication of this article.
References
-
Alami, I., Taggart, J., Whiteside, H., Gonzalez-Vicente, R., Liu, I. T., & Rolf, S. (2024). Quo vadis neoliberalism in an age of resurgent state capitalism? Finance and Space, 1(1), 340–367.
[https://doi.org/10.1080/2833115X.2024.2392736]
-
Arthur, W. B. (1994). Increasing returns and path dependence in the economy. University of Michigan Press.
[https://doi.org/10.3998/mpub.10029]
-
Babić, M., & Mertens, D. (2025). Decarbonization under geoeconomic distress? Energy shocks, carbon lock-ins, and Germany’s pathway toward net zero. Regulation & Governance, 19(2), 448–468.
[https://doi.org/10.1111/rego.12634]
-
Brand, U. (2012). Green economy–The next oxymoron? No lessons learned from failures of implementing sustainable development. GAIA-Ecological Perspectives for Science and Society, 21(1), 28–32.
[https://doi.org/10.14512/gaia.21.1.9]
-
Breetz, H., Mildenberger, M., & Stokes, L. (2018). The political logics of clean energy transitions. Business and Politics, 20(4), 492–522.
[https://doi.org/10.1017/bap.2018.14]
-
Bridge, G., Bouzarovski, S., Bradshaw, M., & Eyre, N. (2013). Geographies of energy transition: Space, place and the low-carbon economy. Energy Policy, 53, 331-340.
[https://doi.org/10.1016/j.enpol.2012.10.066]
-
Christophers, B. (2022). Fossilised capital: Price and profit in the energy transition. New Political Economy, 27(1), 146-159.
[https://doi.org/10.1080/13563467.2021.1926957]
- Council of Higher Education. (2025). Student Statistics. Yükseköğretim Bilgi Yönetim Sistemi. https://istatistik.yok.gov.tr/
- Directorate General for Strategic Research and Productivity. (2025). 2030 Sanayi ve Teknoloji Stratejisi, Ministry of Industry and Technology of the Republic of Türkiye. T.C. Sanayi ve Teknoloji Bakanlığı. https://www.sanayi.gov.tr/plan-program-raporlar-ve-yayinlar/strateji-belgeleri
-
Grasso, M., & Delatin Rodrigues, D. (2025). Sustainability transitions through fossil infrastructure deactivation. Sustainability, 17(14), 6465.
[https://doi.org/10.3390/su17146465]
-
Heine, D. Norregaard, J., & Parry, I. W. H. (2012). Environmental tax reform: Principles from theory and practice to date. IMF Working Paper, WP/12/180. International Monetary Fund.
[https://doi.org/10.5089/9781475505283.001]
-
Helmrich, A., Chester, M., Miller, T. R., & Allenby, B. (2023). Lock-in: origination and significance within infrastructure systems. Environmental Research: Infrastructure and Sustainability, 3(3).
[https://doi.org/10.1088/2634-4505/acf7e6]
- International Energy Agency. (2024). International Energy Agency (CC BY 4.0.) [Dataset]. International Energy Agency. https://www.iea.org/data-and-statistics/data-tools/energy-statistics-data-browser?country=TURKEY&fuel=Energy%20supply&indicator=TESbySource
- International Energy Agency. (2025). IEA energy technology RD&D budgets [Dataset]. International Energy Agency. https://www.iea.org/data-and-statistics/data-product/energy-technology-rd-and-d-budget-database-2#energy-technology-rdd-budgets
- International Renewable Energy Agency. (2025). Renewable capacity statistics 2025 [Dataset]. International Renewable Energy Agency. https://irena.sharepoint.com/:x:/s/statistics-public/EZir9y4VamRNvPDFCpuxSIUB62N4Uf_RyalVGYbcUS-9kw?rtime=fUxf7Fif3Ug
- International Renewable Energy Agency. (2026). Renewable energy employment by country [Dataset]. International Renewable Energy Agency. https://www.irena.org/Data/View-data-by-topic/Benefits/Renewable-Energy-Employment-by-Country
-
Kim, H., & Paik, S. (2025). Dynamic analysis of Korea’s crude oil import demand: The impact of economic growth, oil prices, and major economic disruptions (1980–2023). International Area Studies Review, 28(3), 263–276.
[https://doi.org/10.69473/iasr.2025.28.3.263]
-
Li, X., Wu, T., Zhang, H. J., & Yang, D. Y. (2023). National innovation systems and the achievement of sustainable development goals: Effect of knowledge-based dynamic capability. Journal of Innovation & Knowledge, 8(1).
[https://doi.org/10.1016/j.jik.2023.100310]
-
Lo, K., & Mah, D. N. Y. (2024). State capitalism, fragmented authoritarianism, and the politics of energy policymaking: Policy networks and electricity market liberalization in Guangdong, China. Energy Research & Social Science, 107.
[https://doi.org/10.1016/j.erss.2023.103348]
-
Lockwood, M. (2022). Policy feedback and institutional context in energy transitions. Policy Sciences, 55(3), 487–507.
[https://doi.org/10.1007/s11077-022-09467-1]
-
Lundvall, B. Å. (2007). National innovation systems—Analytical concept and development tool. Industry and Innovation, 14(1), 95–119.
[https://doi.org/10.1080/13662710601130863]
- Minister of Energy and Natural Resources. (2024a). Energy: Rüzgar. Minister of Energy and Natural Resources, Republic of Türkiye. https://enerji.gov.tr/bilgi-merkezi-enerji-ruzgar
- Minister of Energy and Natural Resources. (2024b). Energy: Jeotermal. Minister of Energy and Natural Resources, Republic of Türkiye. https://enerji.gov.tr/bilgi-merkezi-enerji-jeotermal
- Minister of Energy and Natural Resources. (n.d.). Resources: Wind. Minister of Energy and Natural Resources, Republic of Türkiye. https://enerji.gov.tr/eigm-resources-en
- Ministry of Treasury and Finance. (2023, June 16). Press release [Press Release]. Ministry of Treasury and Finance, Republic of Türkiye. https://www.hmb.gov.tr/haberler/basn-acklamas-16-temmuz-2023
- Ministry of Treasury and Finance. (2025). Statistics of the central administration budget. Ministry of Treasury and Finance, Republic of Türkiye. https://muhasebat.hmb.gov.tr/merkezi-yonetim-butce-istatistikleri
-
Musacchio, A., & Lazzarini, S. G. (2012). Leviathan in business: Varieties of state capitalism and their implications for economic performance.
[https://doi.org/10.2139/ssrn.2070942]
- Nelson, R. R. (1993). National innovation systems: A comparative analysis. Oxford University Press.
-
Newell, P. (2021). Power shift: The global political economy of energy transitions. Cambridge University Press.
[https://doi.org/10.1017/9781108966184]
-
Newell, P., & Mulvaney, D. (2013). The political economy of the ‘just transition’. The Geographical Journal, 179(2), 132–140.
[https://doi.org/10.1111/geoj.12008]
- Organisation for Economic Co-operation and Development. (2010). Taxation, innovation and the environment. OECD Publishing. https://www.oecd.org/content/dam/oecd/en/publications/reports/2010/10/taxation-innovation-and-the-environment_g1g1044d/9789264087637-en.pdf
- Organisation for Economic Co-operation and Development. (2026). Environmental tax [Dataset]. Organisation for Economic Co-operation and Development. https://www.oecd.org/en/data/indicators/environmental-tax.html
-
Pierson, P. (2000). Increasing returns, path dependence, and the study of politics. American Political Science Review, 94(2), 251-267.
[https://doi.org/10.2307/2586011]
- Presidency of the Republic of Türkiye. (2023a, September 29). Türkiye’yi savunma sanayii başta olmak üzere, her alanda başarıdan başarıya koşturduk. T.C. Cumhurbaşkanlığı. https://www.tccb.gov.tr/haberler/410/149692/-turkiye-yi-savunma-sanayii-basta-olmak-uzere-her-alanda-basaridan-basariya-kosturduk-
- Presidency of the Republic of Türkiye. (2023b, April 10). TCG Anadolu Gemisi Teslim Töreni ve Yeni MİLGEM Fırkateynleri Sac Kesme Töreni’nde Yaptıkları Konuşma. T.C. Cumhurbaşkanlığı. https://www.tccb.gov.tr/haberler/410/145635/-tcg-anadolu-yu-dunyada-soz-sahibi-ulke-konumumuzu-percinleyecek-bir-sembol-olarak-goruyoruz-
- Presidency of the Republic of Türkiye. (2024a, January 19). Mavi Vatana Güç: Yeni Deniz Platformları Teslimat Töreni’nde Yaptıkları Konuşma. T.C. Cumhurbaşkanlığı. https://www.tccb.gov.tr/konusmalar/353/150804/mavi-vatana-guc-yeni-deniz-platformlari-teslimat-toreni-nde-yaptiklari-konusma
- Presidency of the Republic of Türkiye. (2024b, July 26). Yüksek Teknoloji Teşvik Programı Tanıtım Toplantısı’nda Yaptıkları Konuşma. T.C. Cumhurbaşkanlığı. https://www.tccb.gov.tr/konusmalar/353/153163/yuksek-teknoloji-tesvik-programi-tanitim-toplantisi-nda-yaptiklari-konusma
- Presidency of the Republic of Türkiye. (2024c, May 30). Türkiye, savunma sanayinde gerçekleştirdiği atılım sayesinde bölgesinde vazgeçilmez oyunculardan biri hâline geldi. T.C. Cumhurbaşkanlığı. https://www.tccb.gov.tr/haberler/410/152560/-turkiye-savunma-sanayinde-gerceklestirdigi-atilim-sayesinde-bolgesinde-vazgecilmez-oyunculardan-biri-h-line-geldi-
- Presidency of the Republic of Türkiye. (2025, March 27). 2030 Sanayi ve Teknoloji Stratejisi Tanıtım Toplantısı’nda Yaptıkları Konuşma. T.C. Cumhurbaşkanlığı. https://www.tccb.gov.tr/konusmalar/353/158213/2030-sanayi-ve-teknoloji-stratejisi-tanitim-toplantisi-nda-yaptiklari-konusma
-
Santana, N. B., Mariano, E. B., Camioto, F. D. C., & Rebelatto, D. A. D. N. (2015). National innovative capacity as determinant in sustainable development: A comparison between the BRICS and G7 countries. International Journal of Innovation and Sustainable Development, 9(3-4), 384–405.
[https://doi.org/10.1504/IJISD.2015.071860]
-
Seto, K. C., Davis, S. J., Mitchell, R. B., Stokes, E. C., Unruh, G., & Ürge-Vorsatz, D. (2016). Carbon lock-in: Types, causes, and policy implications. Annual Review of Environment and Resources, 41(1), 425–452.
[https://doi.org/10.1146/annurev-environ-110615-085934]
-
Szabo, J. (2021). Fossil capitalism’s lock-ins: The natural gas-hydrogen nexus. Capitalism Nature Socialism, 32(4), 91–110.
[https://doi.org/10.1080/10455752.2020.1843186]
-
Telatar, O. M., & Birinci, N. (2022). The effects of environmental tax on ecological footprint and carbon dioxide emissions: A nonlinear cointegration analysis on Turkey. Environmental Science and Pollution Research, 29(29), 44335–44347.
[https://doi.org/10.1007/s11356-022-18740-y]
- The Republic of Türkiye Directorate of Communications. (2024, February 25). Cumhurbaşkanı Erdoğan: “Türkiye sadece bölgesel bir güç olmaktan çıkıp küresel bir güç olma yolunda emin adımlarla ilerliyor”. T.C. İletişim Başkanlığı. https://www.iletisim.gov.tr/turkce/haberler/detay/cumhurbaskani-erdogan-turkiye-sadece-bolgesel-bir-guc-olmaktan-cikip-kuresel-bir-guc-olma-yolunda-emin-adimlarla-ilerliyor
- The Scientific and Technological Research Council of Türkiye. (2025). Classification of budget expenditures by activity (2023-2024). Türkiye Bilimsel ve Teknolojik Araştırma Kurumu. https://tubitak.gov.tr/tr/kurumsal/hakkimizda/mali-tablolar
- Turkish Statistical Institute. (2025). Central government budget appropriations and outlays on R&D by socio-economic objectives, 2013-2024 [Dataset]. Türkiye İstatistik Kurumu. https://data.tuik.gov.tr/Bulten/Index?p=Merkezi-Yonetim-Butcesinden-AR-GE-Faaliyetleri-Icin-Ayrilan-Odenek-ve-Harcamalar-2023-49573
-
Unruh, G. C. (2000). Understanding carbon lock-in. Energy Policy, 28(12), 817–830.
[https://doi.org/10.1016/S0301-4215(00)00070-7]
-
Volz, U., Böhnke, J., Eidt, V., Knierim, L., Richert, K., & Roeber, G. M. (2015). Financing the green transformation—Market failures, government failures and the role of the state. In U. Volz, J. Böhnke, V. Eidt, L. Knierim, K. Richert, & G. M. Roeber (Eds.), Financing the green transformation: How to make green finance work in Indonesia (pp. 7–21), Palgrave Macmillan London.
[https://doi.org/10.1057/9781137486127_2]
-
Walz, R., & Eichhammer, W. (2012). Benchmarking green innovation. Mineral Economics, 24(2), 79–101.
[https://doi.org/10.1007/s13563-012-0016-y]
-
Weber, K. M., & Rohracher, H. (2012). Legitimizing research, technology and innovation policies for transformative change: Combining insights from innovation systems and multi-level perspective in a comprehensive ‘failures’ framework. Research Policy, 41(6), 1037–1047.
[https://doi.org/10.1016/j.respol.2011.10.015]
- World Bank. (2026). Labor force, total [Dataset]. UN Population Division. https://data.worldbank.org/indicator/SL.TLF.TOTL.IN
