Four economic principles of just sustainability transition

Equitable income distribution is desirable for moral, economic, and social reasons. Recent studies, however, indicate that improved income allocation will result in increased environmental impacts due to our socio-economic system’s current settings. Therefore, we explored the key aspects of a system that can more evenly reallocate natural and economic resources while reducing negative environmental impacts. We found that the capital is extremely important as a means of material flows and stocks. Thus, effective policy interventions should target mechanisms at this very market. Based on a comprehensive literature review and statistical analyses at various levels, we proposed a four-step policy framework that includes 1) reducing and targeted savings, 2) reshaping governments’ spatial decisions and 3) role in the housing market, and 4) changing the rates of depreciation in income tax legislation used globally.