Optimal climate protection strategies for space heating - The case of Austria

The debate over the costs of climate protection policies still focuses on t he question of whether strategies to significantly reduce greenhouse gas em issions at zero or negative net cost ('no regrets' strategies) can be found . This article describes a carbon dioxide (CO2) reduction strategy for spac e and water heating in Austria relying on net present value analyses of 43 climate protection measures. The cost-benefit analyses include investment c osts, the savings from energy conservation, the administrative costs of pol icy instruments and estimates of the external costs. An efficient CO2 reduc tion strategy was developed on the basis of energy supply curves which were adapted so that interactions between the CO2 reduction technologies could be considered. A cost-efficient CO2 reduction strategy could lower the CO2 emissions for the provision of space and water heating in Austria by up to 2.7% per year relative to the official 'business as usual' scenario. (C) 19 99 Elsevier Science Ltd. All rights reserved.