The idea of implementing a universal basic income (UBI) scheme funded by taxing carbon emissions has been gaining attention as a potential solution to both poverty alleviation and climate crisis mitigation. A recent study conducted by a team from the University of British Columbia in Canada delves into the feasibility and impact of such a scheme on a global scale. The findings suggest that UBI could not only improve living standards worldwide but also boost global economic prosperity.
One of the main challenges associated with UBI is its high cost. According to the researchers, it would require US$41 trillion to provide a basic income to all 7.7 billion people on the planet. However, the study proposes that companies that pollute the environment could bear the cost through taxing carbon emissions, which alone could generate around US$2.3 trillion annually. This approach aligns with the ‘polluter pays principle,’ holding major polluters accountable for the environmental damage they cause.
Economic Impact of UBI
The research suggests that implementing a UBI scheme could lead to a substantial boost in global GDP, estimated at US$163 trillion or 130 percent. The team’s calculations indicate that every dollar invested in UBI could generate up to seven dollars in economic impact, as the additional income would be spent on essential goods and services. This positive economic-impact-to-cost ratio supports the potential benefits of UBI implementation across different scenarios.
Apart from economic gains, UBI funded by carbon emissions tax could also have environmental advantages. The study proposes that such a scheme would incentivize more eco-friendly practices and policies, promoting sustainability in the long run. Additionally, the researchers highlight the potential of UBI in making communities more resilient during crises, ensuring a safety net for individuals’ livelihoods in times of need.
Despite the promising outcomes presented in the study, there are several challenges to implementing UBI globally. Political will and consensus are crucial for the success of such a scheme, along with concerns regarding its impact on work incentives and innovation. The authors suggest exploring diverse funding strategies to overcome the high implementation costs associated with UBI and address the skepticism surrounding its feasibility.
The concept of funding a universal basic income through carbon emissions tax presents an innovative approach to addressing poverty and environmental issues simultaneously. The research conducted by the University of British Columbia highlights the potential economic, environmental, and social benefits of UBI while emphasizing the need for collaborative efforts and strategic planning to overcome existing challenges. As discussions around UBI continue to evolve, exploring sustainable and inclusive solutions like this could pave the way for a more equitable and resilient future.
Leave a Reply