Evaluating export vulnerability through import demand elasticity in carbon border adjustment contexts: a focus on Türkiye.

Import demand elasticity (IDE) is a critical metric often employed to guide government decisions regarding tariffs and non-tariff barriers, ensuring that foreign trade remains uninterrupted while optimizing tax revenues. This study, however, leverages IDE to assess the impact of the carbon border adjustment mechanism (CBAM) on Türkiye's decarbonization process. Specifically, the research analyzed the total export quantities and unit prices of four product groups-cement, fertilizers, and inorganic chemicals, steel and iron, and aluminum-exported from Türkiye to the European Union-27 countries under the CBAM framework between 2002 and 2021.