Work Package 5: Discussion and Policy Recommendations
Based on the preceding work packages, policy recommendations at EU level and for Austria will be developed. At EU level the focus will be put on suggestions for the introduction of a European carbon tax or the development of a general legal framework that will facilitate the introduction or advancement of CO2 taxes at Member State level. For Austria we will develop concrete options for a 'greening' or 'climate proofing' of the Austrian system with the aim of exploiting a 'double dividend', e.g. a significant reduction of GHG emissions and positive effects on growth and employment. Moreover, we will develop strategies for reducing the burden of the carbon tax on low income households.
Policy Recommendations at EU level
Building upon the appraisal of implementation issues and barriers for carbon taxation in WP3, policy recommendations at EU level will be discussed. It will be elaborated if and how a European carbon tax could be achieved. Alternatively, suggestions for the development of a general legal framework that will facilitate the introduction or advancement of CO2 taxes at Member State level will be developed. This will include the identification and legal assessment of specific carbon taxes that enjoy broad Member State support and may therefore be more likely to succeed at EU level.
Policy Recommendations for Austria
In this task we will develop options with a further 'greening' or 'climate-proofing' of the Austrian tax system. So far, the share of environmental taxes in total tax revenues in Austria is below the EU average and far below that of comparable countries such as Denmark. Given the tax scenarios and related model results we will develop recommendations how a carbon tax in Austria could be implemented. Special attention will be given to distributional issues, i.e. methods to minimise regressive impacts of the carbon tax as well as design options that support the shift from fossil fuels to employment as input factors. The research will focus on ways to mitigate negative effects often associated with CO2 tax implementation. Therefore competitiveness and distributional issues will be assessed in depth. The policy recommendations will be developed in cooperation with relevant stakeholder groups (e.g. chamber of commerce, chamber of labour, ministries, NGOs) ensuring the usability of the project results in policy making.