Resolving Social Vulnerability to Climate Policies of the Most Deprived (ReSOLVE)

Austria's commitment to climate neutrality by 2040 requires emissions reductions, particularly in households, where decarbonisation is both essential and socially uneven. Evidence shows that climate mitigation policies, especially carbon pricing, can disproportionately burden households dependent on cars, fossil-fuel heating, or rental housing. However, the dimensions and extent of household vulnerability remain insufficiently understood. ReSOLVE addresses this gap by systematically assessing social vulnerability to climate policies in Austria, with a focus on mobility and heating. The project will develop a Social Vulnerability Index (SVI) combining exposure, sensitivity, and adaptive capacity to identify disadvantaged households most at risk from mitigation-induced costs. Using mixed quantitative and qualitative data, ReSOLVE will characterise vulnerable groups and integrate these findings into the macroeconomic model DYNK to capture economy-wide distributional effects. By linking empirical analysis with policy design, the project aims to inform measures that mitigate adverse impacts, compensate vulnerable households, and support a just and equitable transition. Ultimately, ReSOLVE will advance socially fair decarbonisation pathways that align climate ambition with social justice.