Giving a regular cash payment to the entire world’s population has the potential to increase global gross domestic product (GDP) by 130%, according to a new analysis published June 7 in the journal Cell Report Sustainability. The researchers suggest that charging an emissions tax on carbon emitters could help finance such a basic income program while reducing environmental degradation.
“We propose 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.
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 give people 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, giving a basic income to the entire world’s population could increase global GDP by $163 trillion, which represents about 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 that money for their own consumption and so on. The dollar will rise throughout 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 CO2 The issuers 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: reducing environmental degradation and alleviating 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 are not taxing everyone, only those who pollute the environment. They should pay for the damage they caused,” Sumaila says.
Basic income can also be a proactive program, says Sumaila. When crises like pandemics or natural disasters occur, communities can be more resilient.
“During COVID-19 we saw that 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,” Sumaila says.