14.06.2023

Intergovernmental Fiscal Equalisation System as a Lever for Implementing Austria's Climate Targets

Fields of Action and Conceptual Foundations

A recent WIFO study provides conceptual-theoretical foundations in order to create the basis for the development of concrete measures and instruments for reinforcing a stronger greening of the fiscal equalisation system. Finally, options for the greening of the Austrian fiscal equalisation system that can be implemented in the short and medium term are outlined.

The Austrian federal provinces have extensive competences in areas that are essential for the green transformation, but there are also considerable differences between the Austrian federal provinces with regard to final energy consumption. The participation of all federal levels in a coherent policy framework is necessary to achieve the national task of climate protection. So far, the fiscal equalisation system has only been used to a limited extent as a lever for implementing Austria's climate targets.