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The Austrian government strives for achieving greenhouse gas neutrality in the transport and the buildings sector by 2040. Achieving a complete decarbonisation within such a short time period will be challenging for both sectors: in the transport sector the trend of rising emissions must be reversed; in the building sector the building stock must be thermally improved and heating systems must completely shift towards renewable energy sources. The introduction of policy instruments to decarbonise the housing and mobility sectors will entail different effects for different household groups depending on several (socio-economic) aspects. The (presumed) regressivity of policy instruments (most notably fiscal measures) in these areas very often impedes an evidence-based discussion on the political level and is used as an argument against the implementation of respective measures. By linking a macroeconomic model with a vehicle choice model, a transport demand model and a building stock model, in TransFair-AT we will analyse policy scenarios achieving a full decarbonisation of housing and mobility in Austria by 2040. We will assess the emission impacts as well as the macroeconomic and distributional effects of policy sets on different household types and develop measures to compensate vulnerable groups ensuring that the disposable income of disadvantaged household groups is not reduced.

Climate change is one of today's grand challenges. The EU has committed itself to ambitious emission reduction targets: for 2020 and 2030, the EU aims at reducing its greenhouse gas emissions compared to 1990 by 20 percent and 40 percent, respectively, for 2050 an emission reduction by at least 80 percent is strived for. For large emitters in industry and energy generation the EU has established the European Emission Trading System (EU ETS) in 2005 defining an EU-wide reduction target. Emissions from other sources, most notably from the household and transport sectors, are instead regulated at EU member countries level and should be reduced by 30 percent by 2030, with differentiated reduction targets for the individual EU member countries. To achieve the emission reduction targets in the Non-ETS sectors the issue of carbon pricing has recently gained in momentum in the political discussion at EU as well as at EU member countries level. The project SoMBI focuses on two research questions: What are the effects of an EU-wide carbon price for the Non-ETS sectors that allows achieving the 30 percent reduction target in different EU member countries? What are the effects of different revenue recycling options in the EU member countries? To answer these questions, we perform a model-based analysis with the new ADAGIO-DYNK model. The CO₂ price necessary to achieve the 30 percent EU-wide reduction target for the Non-ETS sectors is estimated. Also, detailed results for two case study countries are discussed. The countries (Austria and Poland) differ considerably in terms of the structure of their energy systems and economies. First, we focus on the macroeconomic, emission and distributional impacts of the tax. Then, the effects of different revenue recycling options are assessed and policy recommendations for the introduction of a carbon tax are developed.

To solve the climate crisis, a fundamental decarbonisation of the 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. It aims to reduce model uncertainties and to synthesise the debate on carbon taxes, and to develop a concerted proposal on how to implement carbon taxes in Austria.