The Ecological Impacts of the Internal Market on Austria

The conclusion that can be drawn from modeling the ecological consequences of the Internal Market for small open economies is that an environmental tax can be implemented in such a way that it does not affect tax revenue and therefore growth, but that care must be taken that, in the case of unilateral actions, the competitive position (in energy-intensive sectors) does not overly suffer. Furthermore, the impact on the income distribution should be investigated.