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Life in a ‘degrowth’ economy, and why you might actually enjoy it

April 6, 2022

Time to get off the economic growth train? Sergey Nivens/Shutterstock

What does genuine economic progress look like? The orthodox answer is that a bigger economy is always better, but this idea is increasingly strained by the knowledge that, on a finite planet, the economy can’t grow for ever.

This week’s Addicted to Growth conference in Sydney is exploring how to move beyond growth economics and towards a “steady-state” economy.

But what is a steady-state economy? Why it is it desirable or necessary? And what would it be like to live in?

The global predicament

We used to live on a planet that was relatively empty of humans; today it is full to overflowing, with more people consuming more resources. We would need one and a half Earths to sustain the existing economy into the future. Every year this ecological overshoot continues, the foundations of our existence, and that of other species, are undermined.

At the same time, there are great multitudes around the world who are, by any humane standard, under-consuming, and the humanitarian challenge of eliminating global poverty is likely to increase the burden on ecosystems still further.

Meanwhile the population is set to hit 11 billion this century. Despite this, the richest nations still seek to grow their economies without apparent limit.

Like a snake eating its own tail, our growth-orientated civilisation suffers from the delusion that there are no environmental limits to growth. But rethinking growth in an age of limits cannot be avoided. The only question is whether it will be by design or disaster.

Degrowth to a steady-state economy

The idea of the steady-state economy presents us with an alternative. This term is somewhat misleading, however, because it suggests that we simply need to maintain the size of the existing economy and stop seeking further growth.

…click on the above link to read the rest of the article…

The Political Economy of Deep Decarbonization: Tradable Energy Quotas for Energy Descent Futures

September 26, 2020

This paper reviews and analyses a decarbonization policy called the Tradable Energy Quotas (TEQs) system developed by David Fleming. The TEQs system involves rationing fossil fuel energy use for a nation on the basis of either a contracting carbon emission budget or scarce fuel availability, or both simultaneously, distributing budgets equitably amongst energy-users. Entitlements can be traded to incentivize demand reduction and to maximize efficient use of the limited entitlements. We situate this analysis in the context of Joseph Tainter’s theory about the development and collapse of complex societies. Tainter argues that societies become more socio-politically and technologically ‘complex’ as they solve the problems they face and that such complexification drives increased energy use. For a society to sustain itself, therefore, it must secure the energy needed to solve the range of societal problems that emerge. However, what if, as a result of deep decarbonization, there is less energy available in the future not more? We argue that TEQs offers a practical means of managing energy descent futures. The policy can facilitate controlled reduction of socio-political complexity via processes of ‘voluntary simplification’ (the result being ‘degrowth’ or controlled contraction at the scale of the physical economy).

1. Introduction

In this paper we offer a new analysis of the policy of Tradable Energy Quotas (TEQs), developed by David Fleming [1]. The TEQs system involves rationing fossil fuel energy use for a nation on the basis of either a contracting carbon emission budget or scarce fuel availability, or both simultaneously, distributing budgets equitably amongst energy-users. The goal is to equitably meet climate change mitigation targets [2] and/or fossil energy depletion realities [3,4] within a nationally-agreed and cooperative framework, in a manner ‘green growth’ strategies seem unable to achieve [5].

…click on the above link to read the rest of the article…

The Political Economy of Deep Decarbonization: Tradable Energy Quotas for Energy Descent Futures

September 18, 2020

Abstract

This paper reviews and analyses a decarbonization policy called the Tradable Energy Quotas (TEQs) system developed by David Fleming. The TEQs system involves rationing fossil fuel energy use for a nation on the basis of either a contracting carbon emission budget or scarce fuel availability, or both simultaneously, distributing budgets equitably amongst energy-users. Entitlements can be traded to incentivize demand reduction and to maximize efficient use of the limited entitlements. We situate this analysis in the context of Joseph Tainter’s theory about the development and collapse of complex societies. Tainter argues that societies become more socio-politically and technologically ‘complex’ as they solve the problems they face and that such complexification drives increased energy use. For a society to sustain itself, therefore, it must secure the energy needed to solve the range of societal problems that emerge. However, what if, as a result of deep decarbonization, there is less energy available in the future not more? We argue that TEQs offers a practical means of managing energy descent futures. The policy can facilitate controlled reduction of socio-political complexity via processes of ‘voluntary simplification’ (the result being ‘degrowth’ or controlled contraction at the scale of the physical economy).

1. Introduction

In this paper we offer a new analysis of the policy of Tradable Energy Quotas (TEQs), developed by David Fleming [1]. The TEQs system involves rationing fossil fuel energy use for a nation on the basis of either a contracting carbon emission budget or scarce fuel availability, or both simultaneously, distributing budgets equitably amongst energy-users. The goal is to equitably meet climate change mitigation targets [2] and/or fossil energy depletion realities [3,4] within a nationally-agreed and cooperative framework, in a manner ‘green growth’ strategies seem unable to achieve [5].

…click on the above link to read the rest of the article…

The suburbs are the spiritual home of overconsumption. But they also hold the key to a better future

December 14, 2018

The suburbs are the spiritual home of overconsumption. But they also hold the key to a better future 

Once is the defining image of the good life under capitalism, commonly held up as a model to which all humanity should aspire.

More than half of the world’s population now lives in cities. Yet with the global economy already in gross ecological overshoot, and a world population heading for more than 11 billion, this way of living is neither fair nor sustainable.

To live within our environmental means, the richest nations will need to embrace a planned process of economic “degrowth”. This is not an unplanned recession, but a deliberate downscaling of economic activity and the closely correlated consumption of fossil energy. We don’t argue this is likely, only that it is necessary.

You might naturally assume this will involve pain and sacrifice, but we argue that a “prosperous descent” is possible. Our new book, Degrowth in the Suburbs: A Radical Urban Imaginary, envisions how this might unfold in the suburban landscapes that are currently emblematic of overconsumption.

The well-known documentary The End of Suburbia presented a coherent narrative of a post-petroleum future, but got at least one thing wrong. There is not a single end to suburbia; there are many ends of suburbia (as we know it).

Reimagining the suburbs beyond fossil fuels

Suburban catastrophists such as James Kunstler argue that fossil fuel depletion will turn our suburbs into urban wastelands. But we see the suburbs as an ideal place to begin retrofitting our cities.

This won’t involve tearing them down and starting again. Typically, Australia’s built environment is turned over at less than 5% per year. The challenge is to reinhabit, not rebuild, the suburban landscape. Here are some of the key features of this reinvigorated landscape:

…click on the above link to read the rest of the article…

Excerpt From “De-Growth in the Suburbs, A Radical Urban Imaginary.” Part 4

November 17, 2018

EXCERPT FROM “DE-GROWTH IN THE SUBURBS, A RADICAL URBAN IMAGINARY. “ PART 4

We started publishing 3 weeks ago this series of an excerpt from Samuel Alexander and Brendan Gleeson’s new book, “Degrowth in the Suburbs: A Radical Urban Imaginary”.

The chapter we will be publishing over 4 weeks (Reimagining the Suburbs Beyond Growth) is the first chapter in the book.

You can read the 3 parts we already published  here and here and here. 

Dr Samuel Alexander,  is the co-director of the Simplicity Institute and a lecturer with the Office for Environmental Programs, University of Melbourne, as well as Research Fellow at the Melbourne Sustainable Society Institute, University of Melbourne.

This book addresses a central dilemma of the urban age: how to make suburban landscapes sustainable in the face of planetary ecological crisis.  The authors argue that degrowth, a planned contraction of overgrown economies, is the most coherent paradigm for suburban renewal. They depart from the anti-suburban sentiment of much environmentalism to show that existing suburbia can be the centre-ground of transition to a new social dispensation based on the principle of enlightened material and energy restraint.

Reviews:

“There is nothing that embodies the twisted values of growth-addicted capitalism more visibly than suburban sprawl.  Massive matrices of carbon-intensive consumerism, the suburbs reflect the forces that are driving our descent into ecological crisis.  But as deepening crises begin to engulf us, Alexander and Gleeson see an unlikely flicker of hope.  The suburbs, they argue, hold the potential for a new, more resilient way of living that could help see us through the calamities of the Anthropocene.  This is a brilliant, invigorating book, poetically written and full of exciting ideas.  A marvellous achievement.’

—Jason Hickel, author of The Divide: A Brief Guide to Global Inequality and its Solutions

…click on the above link to read the rest of the article…

Excerpt From “De-growth in the Suburbs, A Radical Urban Imaginary.”

October 24, 2018

EXCERPT FROM “DE-GROWTH IN THE SUBURBS, A RADICAL URBAN IMAGINARY.”

Over the next 4 weeks we will be sharing with you excerpt from Samuel Alexander and Brendan Gleeson’s new book, “Degrowth in the Suburbs: A Radical Urban Imaginary”.

This book addresses a central dilemma of the urban age: how to make suburban landscapes sustainable in the face of planetary ecological crisis.  The authors argue that degrowth, a planned contraction of overgrown economies, is the most coherent paradigm for suburban renewal. They depart from the anti-suburban sentiment of much environmentalism to show that existing suburbia can be the centre-ground of transition to a new social dispensation based on the principle of enlightened material and energy restraint.

Prelude: The Great Resettlement

This book opens, as it must, by acknowledging that the human species stands at the precipice of self-made destruction. At the very hour when modern humanity arrived at the pinnacle of triumph – a global market economy promising riches for all—the skies have been darkened by the terrible spectres of ecological and social threat. Global warming is only one of these storm clouds, but this alone has the potential to lay waste to our species, as well as most others. At the same time, vast oceans of debilitating poverty surround small islands of unfathomable plenty, exposing the violent betrayal of the growth agenda, euphemistically (or just deceptively) known in public discourse as ‘sustainable development’. This is a race leading towards an abyss, both enabled and entrenched by a sterility of imagination.

The late German scholar Ulrich Beck spoke of how triumph and crisis simultaneously emerge and remerge in a world pervasively and con- tinuously remade by capitalist modernisation.

…click on the above link to read the rest of the article…

Limits to growth: policies to steer the economy away from disaster

April 21, 2016

The earth is a finite place. 
If the rich nations in the world keep growing their economies by 2% each year and by 2050 the poorest nations catch up, the global economy of more than 9 billion people will be around 15 times larger than it is now, in terms of gross domestic product (GDP). If the global economy then grows by 3% to the end of the century, it will be 60 times larger than now.

The existing economy is already environmentally unsustainable. It is utterly implausible to think we can “decouple” economic growth from environmental impact so significantly, especially since recent decades of extraordinary technological advancement have only increased our impacts on the planet, not reduced them.

Moreover, if you asked politicians whether they’d rather have 4% growth than 3%, they’d all say yes. This makes the growth trajectory outlined above all the more absurd.

Others have shown why limitless growth is a recipe for disaster. I’ve argued that living in a degrowth economy would actually increase well-being, both socially and environmentally. But what would it take to get there?

In a new paper published by the Melbourne Sustainable Society Institute, I look at government policies that could facilitate a planned transition beyond growth – and I reflect on the huge obstacles lying in the way.

Measuring progress

First, we need to know what we’re aiming for.

It is now widely recognised that GDP – the monetary value of all goods and services produced in an economy – is a deeply flawed measure of progress.

GDP can be growing while our environment is being degraded, inequality is worsening, and social well-being is stagnant or falling. Better indicators of progress include the Genuine Progress Indicator (GPI), which accounts for a wide range of social, economic and environmental factors.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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