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Efficiency of climate and energy subsidies in Austria

Client

Federal Ministry for Economic Affairs, Energy and Tourism Austria

Year

2025


In recent years, the Republic of Austria has implemented a wide range of support measures for various target groups in order to achieve its climate and energy policy goals. On behalf of the Austrian Federal Ministry for Economic Affairs, Energy and Tourism, Prognos has now analysed the efficiency of these measures.

In view of limited public funds, existing and new measures are to be (further) developed on the basis of this analysis in order to ensure the optimal use of resources to achieve the targets.

Clear definition of the measures' objectives required

In principle, the measures analysed are systematically interlinked and complement each other. The broad scope of the catalogue of measures and the linking of different requirements also make sense. However, this breadth dilutes the focus of the measures' objectives, making them more difficult to evaluate and control.

The following points are crucial for optimising the measures:

  • A clear definition of objectives and delimitation of the task/target area
  • Systematic interaction between the measures
  • Focusing the measures on their objectives, whereby the measures should be designed to be more mission-oriented rather than technology-focused
  • Monitoring that is appropriate to the subject matter and objectives
  • Continuous market observation
  • The stability and reliability of the target groups

Greater energy efficiency plus better gross value added

The aim of the analysis is to further develop the structure of the subsidy system in order to achieve European and national energy efficiency targets. Based on the recommendations, a subsidy policy can be further developed and pursued with the help of 

  • reducing GHG emissions and energy consumption,
  • expanding renewable energies,
  • stimulating investment,
  • optimising gross value added and generate employment effects, which in turn indirectly triggers tax returns,
  • thereby saving the public budget.

Our approach

For the analysis, we used detailed information on individual measures taken by the Austrian Ministry of Economic Affairs (BMWET) and the Ministry of the Environment (BMLUK). This included fact sheets on the individual measures, evaluation reports and other studies, as well as systematised, aggregated and tabular presentations of measure performance and effects. Due to the different sources, we used various methods, e.g. to determine the effects.

Due to the complexity of the energy system, this study can only be one piece of the puzzle and a first step in a comprehensive system analysis. The study did not deal with the overall picture of energy and climate policy support programmes and regulatory instruments, but was limited to a selection of support measures. In connection with continuous market observation and monitoring, it is therefore necessary to regularly review whether the existing mix of instruments needs to be adjusted.

Links and downloads

To the study (PDF, german)

Project team: Dr Stephan Heinrich, Karsten Weinert

Latest update: 26 August 2025

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Dr Stephan Heinrich

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