Climate measures

Modelling the economic impacts of climate policy

On behalf of the Lebensministerium and in cooperation with the Austrian Institute for Economic Research (WIFO) SERI investigates the economic impacts of climate policy measures for Austria, which are intended to reach the Austrian Kyoto target (-13 % reduction until 2010 in comparison to 1990).

Within the project SERI was responsible for modelling foreign trade and quantifying the Carbon leakage effects. “Carbon leakage” refers to the possible increase of greenhouse gas emissions in countries that did not undertake climate policies in response to the mitigating efforts made by countries applying climate policy measures. These indirect impacts of climate change policies occur because the environmental benefit of reduced emissions in countries with climate policies may be offset by higher emissions in other countries, reducing the environmental effectiveness of the abatement.

The results show, that the 7 investigated Austrian climate policy scenarios have neither great effects on foreign trade nor generate big CO2 leakage effects.