The Fiscal Equalisation System as a Lever for Implementing Austria's Climate Goals

Achieving the climate targets represents one of the biggest longer-term challenges for Austria. An important climate policy lever is public finances, including the financial equalisation system currently being renegotiated between the federal government and the provinces and municipalities. The study identifies and discusses options for a greening of the Austrian fiscal equalisation scheme. We develop fundamental conceptual-theoretical considerations which are to serve as a basis to derive concrete measures and instruments.