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The Economics of Transition to a Steady State Economy

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  • Theodore Lianos
Theodore Lianos
Athens University of Economics and Business
DOI: https://doi.org/10.3197/whpjps.63887831800463

Published 2026-10-12

Keywords

  • Steady State Economy,
  • Ecological Equilibrium,
  • Population Reduction,
  • Ecological Footprint,
  • Sustainable Development

How to Cite

Lianos, Theodore. 2026. “The Economics of Transition to a Steady State Economy”. The Journal of Population and Sustainability, October. https://doi.org/10.3197/whpjps.63887831800463.

Copyright (c) 2026 Theodore Lianos

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This work is licensed under a Creative Commons Attribution 4.0 International License.

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Abstract

This article examines the economic transition from a growth-oriented capitalist economy to a Steady State Economy (SSE), with particular emphasis on the role of population reduction in achieving ecological equilibrium. Drawing on Daly’s foundational framework, the paper analyses the demographic, labour market and distributional consequences of a gradual decline in population, arguing that such a decline need not produce recession or lasting social harm. Using the IPAT equation and current ecological footprint data – which show humanity’s demands running at 178 per cent of the planet’s bio-capacity – the paper estimates that sustainable world population lies in the range of 1.3 to 3.5 billion people, far below the current 8.2 billion. The paper concludes that, while voluntary population reduction is unlikely to succeed without binding international agreement, a coordinated global policy of reduced fertility remains the most viable path to long-term ecological and economic sustainability.

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