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Modelling degrowth policies with system dynamics: Towards policy coherence

A human brain wearing yellow glasses, with a linear sequence leading to an interconnected one that represents a system
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In brief

Degrowth Works Only as a Package, Sweden Model Finds

Seven degrowth policies modelled for Sweden would cut fossil CO₂ emissions by 89% and material consumption by 51% by 2050, but only if implemented together. Individually, the policies create trade-offs: corporate taxes and capital decommissioning reduce environmental pressures but raise unemployment, while a universal basic income cuts poverty but pushes up public debt. As a coherent package, however, the policies reduce poverty and inequality while downscaling high-footprint production. The authors warn that higher tax revenues cover costs only in the short term; long-term debt-to-GDP rises, requiring deeper structural reform. The findings add quantitative weight to the post-growth debate and suggest policy coherence, not single instruments, is the decisive factor.

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