Eco-subsidies

For every euro of taxpayers’ money, 2.80 euros are returned

What are the actual benefits of the many millions of euros that the Styrian state government spends on environmental and renovation subsidies? A new study has now investigated this. The result: one euro of taxpayers' money invested returns almost three times as much in added value.

Let's take a fictional example: the Gruber family lives in a small house in the countryside that is several decades old. The heating costs are high - partly because a lot of heat is lost through the thin walls. The Grubers renovate their house and receive part of the costs from the province of Styria. This will reduce their heating costs. With the money that the family no longer has to spend on heating, they go to the pub once a month and buy a new bike. This earns the businesses and their employees money, who in turn buy elsewhere, and so on.

Joanneum Research presented such a calculation, only much more complicated, in Graz on Friday. The team of researchers led by Franz Prettenthaler calculated how much regional added value was created from the 265 million euros in subsidies (for the environment and renovation) paid out between 2020 and 2023. The answer: 740 million euros. "One euro of taxpayers' money generated 2.80 euros of added value," says Prettenthaler. This secures 8440 regional jobs.

Lower energy costs enable a higher level of household consumption - in other words, prosperity increases.

Franz Prettenthaler, Joanneum Research

Private individuals add five euros to every euro
The subsidies that were examined are, for example, for renovations, biomass heating systems, heat pumps, boiler replacements and district heating connections. The investments alone show: "Private individuals put five euros on top of every euro of funding," says Prettenthaler. This then benefits installers, technicians, the forestry industry and many more.

"Of course, some of the money also goes abroad, for example because many photovoltaic modules come from China," says Prettenthaler. "But once the system has been in operation for 20 years, people can spend their money on something else."

Provincial Councillor Simone Schmiedtbauer, Franz Prettenthaler (Joanneum Research), Provincial Councillor Ursula Lackner (from left).(Bild: Land Steiermark/Binder)

Fewer imports
The climate is also happy. The measures mean that 215 gigawatt hours less energy has to be imported from abroad each year. "That's roughly what three Mur power plants produce," says Prettenthaler.

There could hardly be better news for Ursula Lackner (SPÖ, Energy) and Simone Schmiedtbauer (ÖVP, Housing), the two provincial councillors responsible. "The subsidies reduce emissions and strengthen the economy," says Lackner. Schmiedtbauer: "We will continue on the path we have taken."