Reducing CO sub(2)-Emissions Under Fiscal Retrenchment: A Multi-Cohort CGE-Model for Austria

Current developments in Austrian economic policy form the basis for modeling lifetime welfare costs for cohorts affected by The Toronto emission reduction treaty under Maastricht-driven fiscal retrenchment criteria for the European Monetary Union. The lifetime welfare costs of all cohorts are quantified both under a carbon dioxide emission and public debt stock reduction option and under the option of adherence to the fiscal flow criterion allowing CO sub(2) permit revenues to recycle to consumers or producers. Heavy lifetime welfare losses are incurred by middle-aged and youngest cohorts if both the Toronto policy objective and the fiscal stock criterion are pursued simultaneously.