How Can Degrowth and Democratic Planning Policies be Implemented? An Empirical and Theoretical Investigation

Abstract

Despite the 2015 Paris Agreement targets, global greenhouse gas emissions continue to rise, highlighting the need for more radical action. Degrowth, as a planned reduction in resource use, seeks to balance economic goals with ecological sustainability, improve well-being, and reduce inequality. This study empirically examines the implementation of degrowth and democratic planning policies to address escalating ecological crises and socioeconomic inequalities. It explores the structural transformations needed to support degrowth, especially their viability beyond capitalism. Using an environmentally extended multi-regional input–output dataset, the study models the impact of a degrowth policy mix in six countries: the United States, Germany, the United Kingdom, China, Turkey, and South Africa. The four key policies considered include reducing output in ecologically destructive sectors, reducing work hours, redistributing income, and implementing guaranteed minimum income. These policies, set within a democratic planning framework, target both demand and supply sides to reduce emissions and income inequality. Collectively, the six countries contributed 24,044,285 kilotons of carbon dioxide equivalent emissions in 2021. Under the proposed degrowth policies and “business as usual” technological advances, emissions are projected to decrease by 56%, aligning with recommendations of the Intergovernmental Panel on Climate Change for a 60% reduction by 2035. Results indicate that these policies could significantly mitigate emissions but would require complementary measures (e.g., work-hour reductions) to manage employment impacts. This study argues that such policies may be difficult to reconcile with capitalism’s growth imperative and proposes a democratic planning framework as an alternative approach for prioritizing social and ecological well-being over profit.