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Basic Income and Working Time Reduction: What Is Their Environmental Impact? by Anastasia Cojocaru

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Basic Income and Working Time Reduction: What Is Their Environmental Impact? by Anastasia Cojocaru Basic Income and Working Time Reduction: what is their environmental impact? by Anastasia Cojocaru Abstract This paper looks at Basic Income (BI) and Working Time Reduction (WTR), as two policies targeting employment, and their environmental impact. Its focus is on social and environmental aspects of the two policies, with the aim of determining whether they might have a positive environmental impact if implemented on a large scale, at a national level, in the Global North 1 and Global South. The social and environmental aspects have been chosen as the focus of this paper since BI and WTR are seen as mainly social policies but given that environmental aspects have become a central aspect to examine at present, these aspects have been linked to the social dimension. Each of the two policies is illustrated by case studies examining their implementation in various countries in both the Global North and Global South. The variety of case studies highlights the conditions in which the two policies were implemented and how this implementation was undertaken to show what could be learned from their outcomes. This paper ​ has started looking at degrowth generally and at its policies, which encompass ideas about reducing environmental impact, and then looked at BI and WTR as prominent policies that emerged from the degrowth literature. However, the case studies do not make it possible to clearly state that those two policies help in transitioning towards environmental sustainability, given that positive environmental impacts were not among the main targets of the case studies. However, raising awareness towards a positive link between BI and WTR and their environmental impact is important for future research. Keywords: degrowth, basic income, working time reduction, climate change, sustainability ​ 1 The Global North encompasses developed countries while the Global South refers to developing nations (Therien, 1999: 723). 1 Table of Contents Introduction/Research Question………………...………………………………………………3 a)General aspects of degrowth b) Hypotheses to go further Literature Review………………………………………………………………………………13 a) Main ideas/theories from the literature b) Basic Income c) Working Time Reduction Methodology…………………………………………………………………………………….19 a) Why this research topic b) Data Collection Results and Discussion………………………………………………………………………….23 A. Case study for each policy and its hypothesis (analysis) a)Basic Income Namibia India Finland Spain The Netherlands Scotland b)Working Time Reduction Sweden B. Discussion Conclusion………………………………………………………………………………………43 References……………………………………………………………………………………….45 a)Primary sources b)Secondary sources Appendix 1………………………………………………………………………………………49 Questionnaire for Basic Income and Working Time Reduction trials 2 1) Introduction a)General aspects of degrowth At the core of this research paper is the idea of sufficiency as an organising principle for society (Princen, 2005). “Consumers and citizens are central in innovations that promote sufficiency, and hence have the potential for disruptive innovation, which can change the logic of the dominant consumption-production systems” (Lorek and Fuchs, 2013:40). Transitioning to ​ social and ecological sustainability is about inventing new ways of living, with the aim to create the conditions for a harmonious coexistence between people and their environments. There is a stringent need for new approaches to organising society that consider environmental limits while still allowing people to live a decent life. Degrowth was initially launched as “a project of voluntary societal shrinking of production and consumption aimed at social and ecological sustainability” and later “developed into a social movement” (Demaria et al., 2013: 192). Degrowth as a term comes from the French décroissance and it was first introduced by ​ Andre Gorz as part of a debate at Le Nouvel Observatoire in 1972, which represented a ​ follow-up to The Limits to Growth report published by the Club of Rome (Asara et al., 2015: ​ ​ 376). Gorz’s use of the term reunited the ecologist and culturalist critiques of economics; the ecologist critique is based on the Georgescu-Roegen’s bio-economical approach and challenges classical economics through ecological science while the culturalist critique originates from post-development theory and political ecology and criticises the worldwide use of technologies and consumption models developed in the Global North (Asara et al., 2015: 376). Degrowth builds on ecological economics, which has as its foundations in Georgescu-Roegen’s ecological limits to growth, Boulding’s thesis on the biophysical limitations of economic activity, and Kapp’s rethinking of environmental externalities as an in-built feature of modern consumption and production (Asara et al., 2015: 376). The concept of degrowth emerged before any mention of sustainable development, the latter being rooted in the 1987 Brundtland Report (Asara et al., 2015: 379). Since its beginnings, degrowth has come to include more concepts such as democracy, wellbeing, meaning of life, and justice; now it is being defined by some scholars and activists as a downscaling movement (Asara et al., 2015: 377). A voluntary contraction of the economic system linked to the shrinking of GDP is an idea comprised in degrowth; this idea refers to individuals opting to quit the high-consumption market model (Foster, 2011: 27). In Latouche’s view, degrowth is equated to a large-scale change in society: a switch to an economy dominated by downshifting and contraction, from a previous one which had growth as its central objective (Foster, 2011: 27). “Degrowth challenges the hegemony of growth and calls for a democratically led redistributive downscaling of production and consumption in industrialized countries as a means to achieve environmental sustainability, social justice and well being” (Demaria et al. in Kothari et al., 2014: 369). Degrowth paves the way towards a society that will employ fewer natural resources and in which sharing, simplicity, conviviality, care, and the commons are some 3 of its core principles (Kothari et al., 2014: 369). Therefore, degrowth could offer an answer to “how to be able to enjoy a ‘good life’ within ecological limits” (Koch, 2013: 8). By challenging the mainstream growth-oriented narrative, this work looks at some of the potential links between the social and the environmental dimensions of degrowth. Degrowth promotes sufficiency and has the potential for disruptive innovation. Are there any links between lower per capita demands on the environment and achieving sufficiency through BI as well as less, meaningful, and shared work? This paper examines how “the satisfaction of genuine human needs and the requirements of ecological sustainability could become the constitutive principles of a new, more communal order” (Foster, 2011: 33). Economic growth continues to be the main goal pursued by most governments (Victor, 2012: 207). Assessing environmental or other policies through the effect they have on growth is the norm (Victor, 2012: 207). What if a sharp fall in economic growth is imperative for preventing disastrous climate change? (Victor, 2012: 207). The current economic system is a long way from disconnecting itself from its material throughput (van Griethuysen, 2010: 590). In ​ fact, the current economic system is all the more reliant on “the exploitation of human and natural resources”, augmenting both environmental damage and social injustice to the stage where both people and ecosystems are at risk (van Griethuysen, 2010: 590). However, as van den Bergh (cited in Schneider et al., 2010: 512) states, in the current society individuals should be sceptical of growth and implement equitable, efficient social and environmental policies without accounting for their impact on economic activity. Therefore, abandoning growth involves the increased use of regulation and the fostering of ethical progress, as observed since the Limits to ​ Growth report (Martinez-Alier et al., 2010: 1744). ​ Then how can policy makers make ends meet? Governments are expected to safeguard social and common goods while remaining within ecological limits, despite the fact that “institutional path-dependency and technological lock-in effects bind governments to the pursuit of economic growth” (Koch, 2013: 2). There are three scenarios that explain how governments aim to attain these goals (Gough in Koch, 2013: 2). The first scenario corresponds to the mainstream Republican position of the US and is called “irrational optimism” (Koch, 2013: 2). According to Koch (2013: 2), Gough describes this scenario as based on the idea that more rapid growth will “equip future populations to cope with climate change, mainly through adaptation”. A second scenario comprises “green growth or ecological modernization to which most European countries subscribe” while a third scenario of “no-growth or degrowth questions economic growth itself” (Koch, 2013: 3). In Finland’s case, for instance, interviews done with members of the Finnish Committee on sustainable consumption and production (SCP), showed how “it is common even among business and ministry representatives to criticize the current growth-bound economic system” (Berg and Hukkinen, 2011: 151). Still, growth criticism is an older occurrence; both Adam Smith and John Stuart Mill voiced their doubts about it (Berg and Hukkinen, 2011: 152).The individuals interviewed by Berg and Hukkinen (2011: 157) stress the essential role of citizens in 4 pushing for change to a simplified,
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