Bilkent Energy Notes

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Energy Price Dynamics In Turkey

Model

ENx

Enerji Talebini Öldüren Bir Virüs: Koronavirüs'ün Etkilri

TR

- Bilkent Energy Policy Research Center

Abstract

In Turkey, electricity, oil and natural gas price formation, is a complicated and frequently discussed issue. Adding to this confusion about cost-price questions, it is important to know how energy prices are formed. In this paper, electricity in Turkey, natural gas, gasoline and diesel prices after the shock of different calculation within a simple modeling examined the effects of these prices. A simpler model is used instead of an econometric model. It has been observed that econometric models in this field - no matter how complex and successful they are - do not reflect the present because they use past data sets. Instead, this method, which reflects the current regulations and taxes and the price mechanics in the recent period, has been chosen. The main reason for choosing such a method is the importance of understanding the dynamics of price formation mechanisms rather than the price itself.

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