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What Economists Recommend to the Government for Climate Protection

Die CO2-Bepreisung schafft eine Kostenwahrheit.
Die CO2-Bepreisung schafft eine Kostenwahrheit. ©Pixabay (Sujet)
In an online press conference, economist Sigrid Stagl from WU Vienna and climate economist Karl Steininger from the University of Graz emphasized the importance of climate protection for the upcoming government. Stagl highlighted that climate policy should be considered a cross-cutting task and called for the abolition of climate-damaging subsidies.

Regarding the commuter allowance, "an alliance with public transport" is necessary, according to Steininger. This could be specifically achieved through a combination of the climate ticket and an allowance that only applies up to the first transfer point to public transport. Additionally, company cars should no longer be considered part of income, and alternatives would be required here.

Climate Economist for Ecologization Instead of Abolition of Climate-Damaging Subsidies

According to Steininger, as per the protocol of the trilateral negotiations that collapsed in early January, a reform of climate-damaging subsidies was intended, but at that time there was no consensus on the reform of the imputed income regulation for company cars or the abolition of the diesel privilege. Stagl added that it was not about abolishing these subsidies, but about their ecologization. She hopes that the future government will perceive "climate policy as an integrated task," as it cannot be managed by just one department.

Additional Demand Through Measures for Climate Protection

Regarding climate protection, it is known, according to Steininger, that it is necessary, but there are still opposing voices that speak of a threat to the economy in this context. "However, an investment in climate protection measures creates additional demand, which increases domestic value creation in the capital-intensive renewables," argued the economist - imports of fossil energy, on the other hand, would cause this to flow abroad. Stagl pointed out in this context that "infrastructure investments should not be confused with costs," as past investments in hydropower, for example, have brought benefits for decades.

Referring to the "Draghi Report" on the future of European competitiveness despite the necessary decarbonization, Steininger highlighted a USP (unique selling proposition, note) of the Austrian economy, which would lie in the circular economy. Here, for example, the corresponding strategy of voestalpine is a positive example. Overall, Austria shows significant strengths in strategically relevant technology fields.

Economist Stagl: "Those Who Want Climate Protection Must Reverse Incentives"

"Those who want climate protection must reverse incentives," was the motto of economist Stagl, because purely economically speaking, "non-sustainable actions are still cheaper," which should be changed through economic incentives and societal transformations. This requires a "smart combination" of CO2 pricing and regulatory measures, without which there would be a "socially regressive effect on poorer households," which would be disproportionately affected. Without CO2 pricing, however, there is no cost truth, which functioning markets would need.

(APA/Red)

This article has been automatically translated, read the original article here.

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