Universal basic income can also reduce CO2 emissions

June 7 () –

Charging an emissions tax on carbon emitters could help finance a universal basic income program and at the same time reduce environmental degradation.

It is the conclusion of a new analysis published in the journal Cell Reports Sustainabilitywhich ensures that this regular cash payment to the entire world population has the potential to increase global gross domestic product (GDP) by 130%

“We are proposing that if we can combine basic income with environmental protection, “We can save two birds with one stone,” says first author U. Rashid Sumaila of the University of British Columbia in Vancouver, Canada.

Sumaila has been working to end harmful fishing subsidies around the world, but many people who depend on fishing for their livelihoods, especially those in developing countries, say they need the subsidies to support their families. “One of the ways we can address this is to provide people with a basic income. With that, we could achieve sustainability goals without compromising people’s livelihoods,” she says.

The research team estimated that it would cost $41 trillion to provide the entire world population of 7.7 billion people with a basic income, or $442 billion to fund just 9.9 million people living below the poverty line in the United States. less developed countries. In return, Providing a basic income to the entire world population could increase global GDP by $163 trillionwhich represents around 130% of current GDP.

The analysis shows that every dollar spent implementing basic income can generate up to seven dollars in economic impacts. “If you give someone a dollar, they will spend some of the money on buying food or paying rent. And the people who are paid for food and lodging will use some of this for their own consumption, etc. The dollar is It will filter through all of society. Our calculations show that the economic impact of that dollar will be much greater than its original amount“says Sumaila.

The team also explored ways to finance basic income. They estimated that taxing CO 2 emitters alone can generate around $2.3 trillion a year, enough to provide a basic income to all people living below the poverty line in less developed countries.

The researchers also suggested other alternative options for funding basic income programs, such as a tax on plastic pollution or redirecting harmful subsidies to oil, gas, agriculture and fishing to fund the program. These approaches can address two of the biggest challenges around the world: reduce environmental degradation and alleviate poverty.

Real-world examples have demonstrated the benefits of basic income programs. For example, in Indonesia, villages that received a basic income have substantially lower deforestation rates than those that did not.

“It is not easy to implement carbon taxes, but that does not stop our academics from reporting on the evidence we have. Furthermore, we do not tax everyone, only those who pollute the environment. “They should pay for the damage they caused,” says Sumaila.

Basic income can also be a proactive program, says Sumaila. When crises like pandemics or natural disasters occur, communities can be more resilient. “We saw that during COVID-19, governments around the world were coming up with all kinds of programs to support people who suddenly lost their ability to earn an income. If we had a basic income, we wouldn’t have to struggle,” concludes Sumaila.