Search formAdvanced search

This paper reviews the literature on (potential) green recovery measures in the context of the global financial crisis and the COVID-19 pandemic, focusing on their macroeconomic effects. We find that spending for renewables and energy efficiency is particularly promising with regard to macroeconomic impacts. Moreover, the empirical evidence suggests that green recovery measures are associated with larger macroeconomic effects compared to conventional non-green recovery spending. We also derive lessons learned with regard to open questions and issues as well as accompanying framework conditions which could enhance a macroeconomically successful implementation of green recovery measures.

We analyse the (techno- and macro-)economic and distributive effects of a transformation to a renewable electricity system in Austria by 2030, as stipulated by the Austrian government. For the analysis, the macroeconomic model DYNK and ATLANTIS, a partial model of the electricity market, were expanded and linked. Four transformation scenarios conforming with the 100 percent renewable electricity target in Austria on a national balance are examined, integrated into a consistent scenario for the development of the European electricity system. Additionally, sensitivity analyses with respect to the gas price are performed. Although all scenarios achieve 100 percent renewable electricity on a national balance, the analysis shows that electricity from gas-fired power plants will still be needed in 2030 to balance variable renewable generation, to avoid grid congestion, and for heat generation from combined heat and power plants in winter months. Another main conclusion from the simulations is that the transition towards a renewable electricity sector is almost neutral from a socio-economic perspective. It does neither reveal harmful impacts nor lead to high multiplier effects from additional investment. With high natural gas prices in the sensitivity scenarios a decrease in GDP and household income, which might motivate redistributive policies, can be observed.

Wir modellieren effiziente Anpassungsmaßnahmen an häufigere und längere Trockenperioden sowie die Auswirkungen auf den landwirtschaftlichen Bewässerungsbedarf, die Produktion und den Nettoerlös in Oberösterreich. Dazu wenden wir einen integrierten Modellverbund – bestehend aus modellierten Niederschlagsszenarien, einem agronomischen Fruchtfolgemodell, einem bio-physikalischen Prozessmodell und einem ökonomischen Landnutzungsoptimierungsmodel l – auf 1 km Rasterebene an. Die Ergebnisse zeigen, dass Bewässerung im Norden und Zentralraum Oberösterreichs eine effiziente Anpassungsmaßnahme an häufigere Trockenperioden ist, verbunden mit einem deutlichen Anstieg des Bewässerungsbedarfs und Rückgängen der landwirtschaftlichen Nettoerlöse. Hingegen entsteht im Süden auch unter trockeneren Bedingungen nur ein geringer Bewässerungsbedarf. Neben Bewässerung führt eine effiziente Anpassung zu Änderungen bei Fruchtfolgen, Bodenbearbeitungsverfahren und Zwischenfruchtanbau. Die Ergebnisse unterstützen die Entwicklung von Strategien zur effizienten Klimawandelanpassung in der Land- und Wasserwirtschaft in Oberösterreich.

There is still a lack of knowledge on how to effectively help the long-term unemployed into employment. We evaluate a wide range of active labour market policies for this target group, using a dynamic matching approach. Measures vary considerably in the extent to which they improve labour market prospects. Human capital-intensive training programs that substantially enhance vocational skills and employment programs are most effective, short activating job search training the least. Our results suggest that not only wage subsidies in the private sector, but also direct job creation in the public and non-profit sectors can work, if properly designed.

Additional green public investment at the Member-State level will be needed to address the climate emergency as a central priority in the EU. This chapter discusses two paths to enable increased green public investments in the EU: through possible amendments to the current EU fiscal framework or through funding from the EU budget. The Commission's proposal from November 2022 regarding orientations for a reform of the EU-governance framework widens the leeway for debt-financed public investment. However, existing green public investment needs are not considered sufficiently. Therefore, we discuss several options to enable the flexibility of national budgets to ensure a level of green public investment which – together with private resources – is sufficient to close the existing green investment gaps. In addition, the use of the lever the EU budget theoretically offers to contribute to green public investment in the EU needs to be intensified. At about 1 percent of EU GNI (1.7 percent of EU GNI including NGEU) the overall volume of the EU budget is limited. The more important are steps to strengthen spending in policies that create EU value added, inter alia green public investment.

With around 90 percent of the average retirement income received from public pension entitlements, the Austrian pension system is very reliant on the first pillar. Occupational pensions are primarily offered through pension funds and insurance companies. Direct commitments are an alternative vehicle, but their usage stagnates. The option for defined contribution (DC) plans with favourable tax treatment offered either by pension funds or insurance companies boosted the prevalence of occupational pensions in Austria. While occupational pensions have become more popular over time, low interest rates and a high liquidity preference dampened demand for individual life insurance contracts. Over the years 2002 through 2022, the performance of pension funds in real net terms has been positive, with an annualised average return of 0.3 percent before tax. The life insurance industry followed a distinctly more conservative investment policy and achieved an average annual net real return before tax of 1.4 percent.