Against the backdrop of rising temperatures, this paper analyzes how prolonged heat affects labor productivity and the corresponding macroeconomic outcomes, using Austria as a case study. While previous research primarily focused on specific industries or used industry aggregates, this study also considers inter-industrial economic connections. We assess the macroeconomic effects of an increase in seasonal heat stress triggered by climate change with an emphasis on (1) industry-specific work intensity and (2) the vulnerability to heat-induced impairments resulting in an industry-specific loss of labor productivity. To account for indirect and non-linear economic relationships, we apply an agent-based model of the Austrian economy, which translates heat-induced productivity losses into economy-wide effects via shocks to industry-related input-output structures on the level of economic agents. The findings highlight how in the scenario with the highest temperature increase, the largest average loss in real GDP amounts to 0.7% in the third year compared to the baseline scenario. The largest aggregate effect is found for investments in dwellings. In line with existing literature, industries most affected directly are those that perform intense work in the sun, such as agriculture and construction. Our methodological approach, model, and the corresponding EU data sources can serve as a blueprint for further comparative research.

We present a novel methodology to integrate heterogeneous micro-founded preferences into a dynamic computable general equilibrium model. This integrated model is linked to a bottom-up technology-rich electricity model and a stock-flow vehicle accounting model to quantify the social costs of electric vehicles as an endogenous, demand-driven abatement technology. Emission abatement is achieved through consumer choices that are recognised as a central driver of endogenous technological change. Endogenously determined emissions from vehicle use, electricity generation, and production provide an input to quantify external costs attributable to air quality and carbon emissions. We find that carbon and vehicle registration tax policies induce a significant shift away from conventional vehicles towards electric vehicles in Austria by 2030. The shift to electric vehicles results in small overall economic costs, a substantial decline in fuel demand that exceeds the increase in electricity demand to charge vehicle batteries, and overall positive net environmental benefits.

Zusammenfassung: The Summary for Policy Makers presents the main results in condensed form. The summary is the result of an internal coordination process and is therefore supported by all coordinating lead authors. For each statement, the relevant chapters and the correspondence and scope of the literature are indicated. Details on the statements can be found in the respective chapters.

Zusammenfassung: The technical summary is aimed at a professional audience and summarizes the most important findings of the report, but without going into all the details. Each chapter is summarized on approximately two pages. For the relevant statements, an evaluation with regard to agreement and literature basis is given. In contrast to the summary for decision-makers, the literature is also cited.