Work Package 4: Discussion and Development of Policy Recommendations


Policy recommendations for the implementation of a carbon tax and different recycling scenarios for the EU and its Member States will be developed based on the modelling results and the literature review.

The modelling results deliver insights on the contribution of fiscal instruments for achieving national climate policy target. Another result regards the specific vulnerabilities of the household income groups in terms of reduced income and consumption possibilities and in terms of changes in labour supply.

We will develop recommendations how potential negative effects of the fiscal instruments on low-income households could be mitigated. This will include a comprehensive discussion of the role of different revenue recycling options as well as a survey of other targeted measures from the literature.

Our suggestions will be discussed in a workshop with researchers and representatives from administration, interest groups and NGOs. The final recommendations will be published in a policy brief.

Last update: November 2020

This research was funded by the Jubiläumsfonds of the Oesterreichische Nationalbank (OeNB).