Objectives and Options of the Tax Reform: Ways and Means to Make the Austrian Tax System more Eco-friendly

Starting out from the revenues obtained from the ecological tax levied in Austria, the study evaluates the economic effects of € 1 billion in additional revenues from environmental taxes distributed to businesses and private households by lowering the payroll costs. Such a return distribution would determine the slightly positive effect on GDP and on employment. Examples are given to show which changes would be necessary in the taxes on fuels and electricity and in introducing a new CO2 tax in order to generate additional revenues of € 1 billion per year. For a macroeconomic evaluation, a combination of ecological tax options was used.