Economic Effects of Measures to Increase Energy Efficiency and the Share of Renewables in Austrian Climate and Energy Model Regions

Climate change and resource constraints require a fundamental transformation of existing energy systems. For such an energy transition a focus on energy services is essential, as well as the endeavour to change energy systems at the regional level. Along with behavioural changes, energy efficiency improvements and an increased deployment of renewables are key elements of such a transition. In this research project the effects of different packages of energy efficiency and renewable energy measures in "residential buildings", "transportation" and "electricity and heat supply" at the Austrian regional level were simulated. We applied an integrated modelling approach that starts with energy services. This is complemented by an assessment of the investment requirements and changes in operating costs. An Interregional Computable General Equilibrium model, Sindelar 10, is used in order to estimate the effects on value added and employment. Our analysis shows that implementation requires considerable investment. While GDP and employment are expected to increase at the national level, growth effects are distributed unevenly across regions: smaller regions generally profit less due to direct and indirect outflows of investment to more highly industrialised regions. In Lower Austria, where petroleum refining is concentrated, output declines when fossil fuel demand is reduced.