Producción Científica This paper investigates to what extent green growth is able to promote social equity and which social policies can complement environmental policies to achieve social prosperity and sustainability. We de- velop a dynamic macrosimulation model to explore the social and structural effects of the Italian national energy and climate plan. We show that green growth alone will not result in better societal conditions and needs to be compensated with social policies that directly tackle inequality. Consequently, we select two social policies that are expected to improve income distribution, namely a basic income programme and working time reduction. Our scenario analysis shows that working time reduction leads to an in- crease in employment and a parallel decrease in aggregate demand that causes a reduction in emissions and inequality. The basic income programme reduces inequality by sustaining aggregate demand which, in turn, partially offsets the positive environmental effects of the energy plan. We thank the participants of the conference “Capitalism, Con- flict, and Cooperation: A Celebration of the Work of Samuel Bowles & Herbert Gintis” held at Columbia University and Luigi Giorgio, Francesco Marghella and Bill Mebane for valuable com- ments and suggestions. The authors acknowledge funding from the Greens|EFA Group at the European Parliament and from the LO- COMOTION project, within the European Union’s Horizon 2020 re- search and innovation programme under grant agreement number 821105.