Badelt Criticism of Lack of Cost-Benefit Considerations in Climate Protection Measures

In Austria, climate protection measures in the building sector prove to be significantly more cost-efficient compared to the transport sector. This is the result of a study commissioned by the Fiscal Council to examine the cost efficiency of climate protection measures.

Badelt Advocates for Examination of Cost Efficiency of Individual Climate Protection Measures

In view of the currently strained budget situation, this discussion "urgently needs to be intensified," urged Badelt. According to the Environment Agency Austria, additional climate protection measures have cost around 4.9 billion euros annually since 2019, consisting of the climate bonus and direct subsidies. These are necessary to achieve the EU-mandated goal of reducing greenhouse gas emissions by 48 percent by 2030 compared to 2005. So far, Austria has met or slightly undercut the target path, said study author Susanne Maidorn. However, further measures are needed to achieve the emissions target, where budgetary costs should be given more consideration.

According to the study, measures in the building sector are particularly cost-effective. By replacing heating boilers, around 1.8 million tons of CO2 equivalents (other greenhouse gases are converted into CO2 units based on their impact on global warming) could be saved annually by 2030. These measures even result in savings. "This means that over the lifetime of a heating system, energy savings exceed the initial investment," calculated Maidorn. In the area of thermal renovation, the marginal abatement costs are in the positive range, but only to a small extent. Marginal abatement costs establish a connection between overall economic costs and the amount of CO2 saved. In the case of heating boiler replacement, a social tiering of subsidies could be considered to save here, suggested Badelt. This measure is also financially sensible for private individuals in the long term.

A different picture emerges when looking at climate protection measures in the transport sector. Measures such as the climate ticket, tunnel projects, or the acceleration of rail transport are significantly more expensive compared to the amount of CO2 saved by them. For the mentioned measures, the marginal abatement costs per ton of CO2 equivalents saved are significantly more than 2,000 euros. For comparison: in thermal renovation, the costs are around 200 to 250 euros per ton saved. According to the study, promoting electromobility is significantly more effective. By increasing the share of electric cars, almost one million tons of CO2 equivalents could be saved annually, at average costs of around 320 euros per ton. Here, the costs were compared to ongoing emissions. Focusing solely on measures in certain areas is a wrong conclusion, said Badelt. "We do not have the choice of either expanding transport or replacing heating systems to achieve the corresponding CO2 savings."

Badelt: Climate Ticket Expensive, Speed Limit 100 Unpopular

The climate ticket performed particularly poorly in the study. It currently costs around 540 million euros annually and, according to the report, only saves about 0.2 million tons of CO2 equivalents per year. Therefore, eliminating the climate ticket would not have a significant impact on CO2 emissions, and whether it would be fiscally sensible "can never be said in isolation," said Badelt. The head of the Fiscal Council emphasized that the primary goal of the climate ticket is not direct CO2 savings. "In practice, it also has other effects," and it is "not about abolishing climate policy. It is about making climate policy economically feasible in the future," the economist affirmed.

Significantly more cost-effective would be reducing the speed limit on Austrian highways to 100 km/h. Although revenue from the mineral oil tax and the CO2 tax would be lost, CO2 could be saved very cheaply in comparison, according to the Environment Agency Austria, around 640,000 tons of CO2 equivalents annually. The problem here is the political feasibility or the unpopularity of the measure. "We have a relatively strong anti-regulation sentiment overall," said Badelt. As a result, politics would not take cheap and unpopular measures, but expensive ones that are noticeable in the budget.

WWF Demands for a Package of Climate Protection Measures

The environmental organization WWF called on Wednesday, regarding the study commissioned by the Fiscal Council, for "a comprehensive package of measures from the future federal government." A "smart mix" is needed that pays off economically and for the budget. As a proposal for counter-financing, the organization suggested the reduction of environmentally harmful subsidies. The Green Parliamentary Club sees itself and its climate protection measures confirmed by the report. They have led to people investing in sustainable technologies, such as heating system replacements. It is always a "question of weighing the costs they cause and how they are accepted by the people," said the Green's budget spokesperson, Jakob Schwarz, in a statement.

(APA/Red)

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