Carbon Tax for Degrowth: Economic, Ecological, and Justice Insights

The environmental consequences of economic growth have become an increasing global concern, making sustainable development a central topic of debate. Traditionally, sustainable development has been understood as maintaining economic growth while reducing its negative environmental impacts. However, this approach has proven empirically unfeasible. In response, the concept of degrowthwhich seeks to decouple economic growth from welfare improvementhas been proposed and promoted by civil society organizations. This article argues that degrowth represents a promising pathway to sustainable development, particularly when other approaches fall short and in the absence of effective technologies to reverse environmental degradation. Building on this background, the paper explores the feasibility of employing carbon taxation as a policy instrument for degrowth. It begins with an overview of the current status of carbon tax implementation, followed by a theoretical framework introducing key concepts such as natural capital and degrowth. The paper then establishes criteria for evaluating the effectiveness and fairness of carbon taxation. Finally, through an analysis grounded in this framework, the paper assesses the potential of carbon taxes as a degrowth measure and concludes with suggestions for future research.