Prof. Kurt Kratena Austrian Institute of Economic Research – WIFO.This seminar will deal with the total CO2 impact of households in an input-output model for Austria with endogenous private consumption. The consumption model describes the demand for different durables and nondurables, derived from intertemporal optimisation and has been estimated econometrically. Energy demand of households in addition to economic variables also depends on the energy-efficiency as well as the level of energy-using durables. Total CO2 emissions are the sum of direct emissions from households (heating, vehicle use) and indirect CO2 emissions of production for households. Policies with incentives to switch towards a more energy-efficient durable stock have a direct impact on energy consumption, as well as on the demand for other nondurables and durables and therefore cause indirect energy and emission effects. An ambitious scrappage policy scheme for heating appliances with a doubling of durable stock turnover might induce significant short-run indirect CO2 emission increases.