A recent analysis published in the journal Cell Reports Sustainability suggests that providing a regular cash payment to the entire world population could potentially increase global gross domestic product (GDP) by 130%. The researchers propose coupling this basic income program with charging carbon emitters an emission tax to fund the initiative and also reduce environmental degradation. Lead author U. Rashid Sumaila from the University of British Columbia believes that implementing basic income alongside environmental protection efforts could achieve sustainability goals without compromising people’s livelihoods, particularly those who rely on fisheries subsidies for their families.
The cost of providing basic income to the entire world population of 7.7 billion people has been estimated at $41 trillion, or $442 billion to fund only 9.9 million people living below the poverty line in less developed countries. However, the potential economic benefits are significant, with global GDP expected to receive a boost of $163 trillion, representing 130% of the current GDP. The researchers suggest that every dollar spent on basic income could generate up to $7 in economic impacts, as the money circulates through society when recipients spend it on necessities like food and rent.
To finance these basic income programs, the research team explored various options, including taxing CO2 emitters to generate approximately $2.3 trillion annually. This revenue could be used to provide a basic income for individuals living below the poverty line in less developed countries. Additionally, alternative funding sources such as a plastic pollution tax or redirecting harmful subsidies from industries like oil, gas, agriculture, and fisheries could also support these initiatives. These approaches not only address poverty alleviation but also contribute to reducing environmental degradation.
Real-world examples, such as in Indonesia, have demonstrated the positive impacts of basic income programs. Villages that received a regular cash payment experienced significantly lower deforestation rates compared to those without the program. Sumaila emphasizes that it is crucial for those who pollute the environment to pay for the damage they cause, and implementing carbon taxes can help address this issue. Basic income can also serve as a proactive program to enhance community resilience during crises like pandemics or natural disasters, as seen during the COVID-19 pandemic when governments worldwide had to quickly develop support programs for individuals who lost their income.
Overall, the proposal of providing a basic income to the entire world population has the potential to not only alleviate poverty but also stimulate economic growth and sustainability. By coupling basic income with environmental protection measures and funding sources like emission taxes or alternative taxes, societies can address two pressing global challenges simultaneously. The research highlights the economic benefits of investing in basic income programs and underscores the importance of proactive measures to build resilience and support communities during times of crisis.