Housing and Mobility – Options for a Climate-neutral Transformation

TransFair-AT Policy Brief

The introduction of policy instruments to decarbonise the buildings and mobility sectors has different effects for different household groups depending on certain (socio-economic) conditions. The (supposed) regressivity of (primarily price-based) climate policy instruments often impairs an evidence-based discussion and is used as an argument against the implementation. This policy brief summarises results from the TransFair-AT project on options for a just transition. It shows that a decarbonisation of mobility and housing in Austria by 2040 can be achieved through a comprehensive mix of measures. The implementation of decarbonisation measures leads to positive macroeconomic effects and to an overall increase in household incomes. Without additional compensation measures, however, richer households benefit more, which further increases the differences between income groups. To mitigate these inequalities and enable a just transformation, targeted compensation measures should be implemented.