Austria is scaling back climate subsidies and commuting to work by car. Guests: Dr Katharina Gangl, Department of Behavioural Economics, IHS & Dr Sebastian Seebauer, International Climate Policy and Economics, Joanneum Research Graz. Hosted by Xaver Forthuber.

Saving money is the motto of the new federal government – the urgently needed budget consolidation is reflected in the double budget just presented by the new federal government for the coming years. There are significant cuts above all in the area of climate protection. While the government programme does include a commitment to finally phasing out climate-damaging subsidies – a demand made by many scientists – the measures now announced seem to be pointing rather in the opposite direction. The economics desk of "Der Standard" even described the budget as a "U-turn" in climate policy in their analysis.

Take mobility as an example: while the Klimaticket is set to become considerably more expensive, the tax deduction for commuters (the "Pendlereuro") is to be tripled. This primarily benefits car drivers from higher income groups, says behavioural and social psychologist Katharina Gangl from the Institute for Advanced Studies (IHS). Subsidies for the private purchase of electric cars are also being scrapped, whilst the acquisition of CO₂-intensive commercial vehicles is being made cheaper, and the diesel privilege remains untouched once again.

There is also no more money for the Klimabonus, which was meant to offset the burden of CO₂ pricing for taxpayers – though it was considered not particularly well-targeted (a "watering can" approach). But is less climate protection really cheaper? Extreme weather events such as the flooding in September caused billions of euros worth of damage in Austria last year. Sebastian Seebauer from the research organisation Joanneum Research in Graz expects these burdens to increase in the future – and to exacerbate socioeconomic inequality. His research group for International Climate Policy and Economics focuses on the social consequences of climate change – and of climate policy measures.

How much money does climate protection need – where should it come from and where should it be invested? What climate policy signals is the government sending, and how will they translate into our behaviour? Can we save money and still protect the environment, and what can each of us do towards that?

Listen at: oe1.orf.at