People-Centered Economic Modelling for Climate Policy

In this project, we aim at assessing the impact of carbon pricing on firms and households in Austria using a novel macroeconomic agent-based model (ABM) with an extraordinary level of granularity. The ABM will be calibrated on administrative datasets that have become available through the Austrian Microdata Center (AMDC). Newly available registry-based household and firm data will allow us to parameterize the ABM to accurately represent the entire population of Austria at an unprecedented level of granularity. This would be a major step towards creating a full “digital twin” of a national economy to be used as a tool for assessing the distributional impact of climate policy on individual firms and households, with a focus on the heterogeneity of such effects across socioeconomic characteristics.