This talk will be presented by Karl Steininger, Professor of Climate Economics and Sustainable Transition at the Wegener Center for Climate and Global Change (University of Graz) on January 19, 2022 at 3 pm.
Title: An Economic Analysis of a Net-Zero Greenhouse Gas Emissions Pathway for Austria
In July 2021 the European Commission suggested a climate legal package to raise its ambition of the EU 2030 climate target from the previous level of 40% of greenhouse gas emissions reduction by 2030 to at least 55% (relative to 1990). While previously the focus has often been on the costs of greenhouse gas mitigation, the perspective has changed towards concern as to missing out on opportunities if an industrialized country like Austria does not actively participate in and shape this transformative development, and in this case could end up at a comparative disadvantage in economic terms – relative to other European countries as well as globally, endangering the country’s strength as an industry location.
The talk will discuss an Austrian net-zero pathway across all sectors and respective economic implications. In addition, also the adjustment of the 2030 targets and the shift in economic transition activity to an earlier phase, specifically now in the Corona-aftermath will be emphasized. Methodologically the analysis builds upon a dynamic multi-region, multi-sector computable general equilibrium (CGE) analysis, incorporating detailed stakeholder inputs in particular across the sectors of industry (steel, cement), energy, transport, and buildings. Results show potential bottlenecks in renewable electricity and available financial resources, and clearly specify the necessary framework conditions (policy, education, international cooperation) to enable such a pathway.
The Economic Effects of Achieving the 2030 EU Climate Targets in the Context of the Corona Crisis: An Austrian Perspective