28 Brigitte Wolkinger et al.
Austria lost its status as a net exporter of electricity. This contextual framework
raises questions around self- sufficiency, further options for the expansion of lowcarbon generation (e.g. cost- competitive spots for hydropower complying with
environmental legislation are almost completely exploited), the coupling of
historically separated sectors, as well as other electrification trends (mobility,
digitalisation, etc.).
Moreover, industry representatives have frequently confronted climate policy
measures with concerns about potential added value losses due to decreasing competitiveness against competitors in non- policy regions, caveats regarding carbon
leakage, as well as unfavourable job market implications. However, evidence on
the consequences of unilateral environmental regulation like carbon pricing is
mixed. Particularly, the dynamics such unilateral measures may set in motion are
diverse as, for instance, suggested by the hypothesis of Porter and Linde (1995). A
recent review by Dechezleprêtre and Sato (2017) finds statistically significant
adverse effects of environmental regulation which, however, are limited to the
short run and are comparably small because production, trade, and choices of location are shown to be mostly determined by other factors such as sunk capital and
costs of transportation. However, this review mainly builds upon observations
from the past, where carbon prices were moderately low, thus evidence against a
plausible threshold level of carbon pricing for which adverse effects of unilateral
environmental measures dominate is lacking. Consequently, re- location measures
of heavy industries remain a prevalent threat in public controversies.
The point of departure for a low- carbon transition
This chapter gives a brief overview of current socio- economic, technological,
and political framework conditions that have to be considered when moving
towards a low- carbon society. The insights are based on a stakeholder dialogue
described in the Research process and methods box.
Research process and methods
In Austria a range of projects and stakeholders address future low- carbon energy
scenarios. The broad transition pathways covered in this chapter, and an understanding of the related risks, were developed applying different methods of stakeholder participation.
First, semi- structured interviews were conducted to gain information on the
Austrian socio- economic and political context related to a low- carbon transition.
In two stakeholder workshops visions for a low- carbon society in 2050 and associated transition pathways were developed, with corresponding risks and uncertainties
assessed and prioritised. In the first workshop the specific Austrian context was discussed and transition pathways towards a low- carbon society in 2050/2030 were
developed using the back- casting approach, i.e. starting from a desired future. Risks
and uncertainties were developed along these pathways in an interactive group
Austria lost its status as a net exporter of electricity. This contextual framework
raises questions around self- sufficiency, further options for the expansion of lowcarbon generation (e.g. cost- competitive spots for hydropower complying with
environmental legislation are almost completely exploited), the coupling of
historically separated sectors, as well as other electrification trends (mobility,
digitalisation, etc.).
Moreover, industry representatives have frequently confronted climate policy
measures with concerns about potential added value losses due to decreasing competitiveness against competitors in non- policy regions, caveats regarding carbon
leakage, as well as unfavourable job market implications. However, evidence on
the consequences of unilateral environmental regulation like carbon pricing is
mixed. Particularly, the dynamics such unilateral measures may set in motion are
diverse as, for instance, suggested by the hypothesis of Porter and Linde (1995). A
recent review by Dechezleprêtre and Sato (2017) finds statistically significant
adverse effects of environmental regulation which, however, are limited to the
short run and are comparably small because production, trade, and choices of location are shown to be mostly determined by other factors such as sunk capital and
costs of transportation. However, this review mainly builds upon observations
from the past, where carbon prices were moderately low, thus evidence against a
plausible threshold level of carbon pricing for which adverse effects of unilateral
environmental measures dominate is lacking. Consequently, re- location measures
of heavy industries remain a prevalent threat in public controversies.
The point of departure for a low- carbon transition
This chapter gives a brief overview of current socio- economic, technological,
and political framework conditions that have to be considered when moving
towards a low- carbon society. The insights are based on a stakeholder dialogue
described in the Research process and methods box.
Research process and methods
In Austria a range of projects and stakeholders address future low- carbon energy
scenarios. The broad transition pathways covered in this chapter, and an understanding of the related risks, were developed applying different methods of stakeholder participation.
First, semi- structured interviews were conducted to gain information on the
Austrian socio- economic and political context related to a low- carbon transition.
In two stakeholder workshops visions for a low- carbon society in 2050 and associated transition pathways were developed, with corresponding risks and uncertainties
assessed and prioritised. In the first workshop the specific Austrian context was discussed and transition pathways towards a low- carbon society in 2050/2030 were
developed using the back- casting approach, i.e. starting from a desired future. Risks
and uncertainties were developed along these pathways in an interactive group