Fair and Effective Carbon Pricing in Austria

To solve the climate crisis, a fundamental decarbonisation of our economy is indispensable. In addition to technological changes, this requires accompanying climate policy measures, most importantly the taxation of carbon emissions. As this instrument leads to manifold indirect effects and uncertainties, FARECarbon employs a stakeholder-assisted multi model comparison of carbon taxation in Austria. In a nutshell, in FARECarbon concerted policy scenarios will be simulated with three different macroeconomic models, which are rooted in different economic theories. These simulations will provide a sound basis for policymaking by illustrating the range of expected effects and related uncertainties, a so called “options space.” The close collaboration with stakeholders throughout the project will on the one hand result in the definition of concerted policy scenarios and on the other hand ensure the integration of stakeholders‘ perspectives in the development of a proposal for carbon taxation in Austria. This process substantially enhances the policy-relevance of the outcomes.