This paper reviews the literature on (potential) green recovery measures in the context of the global financial crisis and
the COVID-19 pandemic, focusing on their macroeconomic effects. We find that spending for renewables and energy efficiency
is particularly promising with regard to macroeconomic impacts. Moreover, the empirical evidence suggests that green recovery
measures are associated with larger macroeconomic effects compared to conventional non-green recovery spending. We also derive
lessons learned with regard to open questions and issues as well as accompanying framework conditions which could enhance
a macroeconomically successful implementation of green recovery measures.
In view of the challenges posed by climate change and the increasingly ambitious climate targets around the world, the search
for effective climate policy instruments is gaining momentum. Carbon pricing, for example, in the form of a carbon tax, and
its effects are therefore attracting increasing attention in academic as well as policy discussions. We review the empirical
effects of carbon taxes with regard to several impact dimensions commonly studied in the literature: environmental effectiveness,
macroeconomic effects, impacts on competitiveness and innovation, distributional implications, and public acceptance. An increasing
body of empirical studies shows that carbon taxes can effectively reduce carbon emissions or at least dampen their growth
while not negatively affecting economic growth, employment, and competitiveness. The existing empirical evidence suggests
that the distributional impact of carbon taxes depends on the type of energy use and the indicators to capture distributional
effects, as well as on household characteristics. Lump-sum transfers are shown to be better suited to mitigate regressive
effects for lower incomes, while higher incomes benefit more from a reduction of labour taxes. Public acceptance of carbon
taxes can be increased by providing public information, avoiding negative distributional effects, and channelling part of
the revenues into "environmental projects".
in: Alberto Comelli, Janet E. Milne, Mikael Skou Anderson, Hope Ashiabor, Taxation and the Green Growth Challenge
Book chapters, contributions to collected volumes, Edward Elgar Publishing, August 2023, pp.99-112
Discussions about the reform of subsidies with negative climate impacts have been going on for decades in policy and research.
Such subsidies counteract climate protection efforts, contradict the polluter-pays principle, and reinforce market distortions
and the carbon lock-in. Based on a literature review, the paper summarises the results of a comprehensive bottom-up analysis
of direct subsidies and fiscal measures (indirect subsidies) that are granted on the federal level in Austria. The analysis
considers energy generation and use, transport, and agriculture and assesses the subsidies' legal foundations and original
motivations, the subsidy volumes and identifies the beneficiary groups. The quantification of the subsidies results in a range
of 4.1 to 5.7 billion € p.a. In addition, relevant regulatory provisions that have a subsidy character are examined. Considering
the environmental effectiveness, economic criteria (like distributional impacts) and potential legal constraints reform suggestions
are developed for the support measures.
in: Stefan E. Weishaar, Janet E. Milne, Mikael Skou Andersen, Hope Ashiabor, Green Deals in the Making. Perspectives from Across the Globe
Book chapters, contributions to collected volumes, Edward Elgar Publishing, August 2022, pp.127-140
Commissioned by: Klima- und Energiefonds
Study by: Austrian Institute of Economic Research – International Institute for Applied Systems Analysis – Vienna University of Economics and Business
A comprehensive restructuring of economies and a massive increase of investments in climate-friendly technologies, infrastructures,
and R&D is needed to reach the Paris targets. The EU has launched a process for greening the financial sector, emphasising
the need for new instruments and financial market regulation for aligning investments to sustainability. This chapter summarises
research on two topics: (1) what are the main political strategies, especially at EU level, to support green finance, and
(2) which are the key supporting factors, barriers and actors for an upscaling of green investments? To assess the relevance
of green finance in the financial market and climate policy (with a focus on Austria) an expert survey was conducted. It delivers
insights on promising policies and strategies for fostering the growth of green finance. Conclusions can be drawn on instruments
(like carbon pricing) that should be integrated in post-COVID stimulus packages to ensure a Paris-aligned recovery.
Mitte 2022 wird in Österreich im Rahmen der "ökosozialen Steuerreform" mit der Bepreisung von CO2 ein neues Werkzeug im Mix
der klimapolitischen Instrumente verfügbar. Österreich folgt mit dieser Bepreisung von Treibhausgasen einer sowohl in Europa
als auch global immer stärker werdenden Tendenz. Dieses Instrument soll Anreize für die Restrukturierung des Wirtschafts-
und Lebensstils setzen, die nicht nur den Klimawandel eindämmen hilft, sondern auch Wohlstand, Resilienz und Wettbewerbsfähigkeit
stärkt.