Competitiveness of Austrian Industry with Continued High Energy Prices

In order to assess the impact of high energy prices on the competitiveness of Austrian industry, we conducted model-based scenario analyses and an enterprise survey. The results suggest that permanently higher energy prices will lead to declines in industrial production and employment, as well as increase the risks of offshoring of energy-intensive production stages. This increases the challenges of decarbonization while maintaining industrial competitiveness. Keeping Austria attractive as industrial location even with persistently higher energy prices, is necessary to ensure continued business investment.