Wiki 9
URL:
https://news.ubc.ca/2024/06/basic-income-stopping-environmental-destruction/
Prof: Link needed to be updated as an external link.
Problem:
The article highlights the urgent need to address the intertwined crises of environmental destruction and economic inequality, arguing that our current systems enable both to persist. It highlights the paradox of nations being sufficiently developed to exploit natural resources yet lacking the wealth or equitable systems to prioritize environmental restoration. Central to the discussion is the polluter pay principle, which asserts that those responsible for environmental damage should bear the costs of rectifying it. By integrating this principle with solutions like basic income, the article posits that reducing income inequality can empower individuals to adopt sustainable practices, as financial stability would enable greater attention to environmental issues. This approach aligns with the Kuznets Curve, emphasizing that equitable wealth distribution can drive the transition to a greener, more sustainable economy.
Prof: The first sentence is a pretty good problem statement. The rest of this paragraph is more of a summary than a problem statement.
Summary:
A study by UBC researchers has found that providing basic income to all adults worldwide could boost global GDP by 130%, or $163 trillion, while helping reduce environmental damage, As highlighted by the Kuznet Curve in the long run. As per the Polluter Pays principle, by taxing major polluters forcing them to reduce environmental impact. Additionally, by redirecting harmful subsidies, the funds could support a basic income program. Offering basic income to those below the poverty line could increase global GDP by $49 trillion, with a cost of $7.1 trillion. Financing options include carbon taxes and redirecting harmful fisheries subsidies. Despite there being certain challenges such as financial and political constraints, there are many real-world examples that show basic income's potential to improve economic stability and reduce environmental harm.
Economic Concepts:
Kuznet Curve:
The Kuznet Curve is an economic theory that believes that as the welfare/income of a country rises, so does its environmental footprint. However, past a certain point, the country’s environmental impact begins shrinking again. This appears to be the case because smaller countries without many resources simply do not have the ability to damage the environment in a significant way. As the country develops more, it gains the capital to be able to pollute on a higher level. Once the nation is wealthy enough to care for the environment, demand for green tech increases, and people will be willing to pay to make these changes. This model also considers income distribution and shows that more equal distribution will also help preserve the environment
Polluter Pay Principle:
The Polluter Pays Principle is an economic concept that holds that those who produce pollution should bear the costs of managing it to prevent environmental and ecological damage. In practice, this means that businesses or individuals responsible for polluting the air, water, or land must pay for the costs associated with cleaning up the pollution, lessening its effects, and preventing future harm. This principle aims to internalize the environmental costs of pollution, encouraging more sustainable practices and reducing the burden on society and taxpayers.
Application:
Kuznet Curve:
This article discusses the possibility of providing everyone with set periodic payments to help create more income equality which is believed will boost GDP. According to the Kuznet curve, boosting GDP like this would make a country more wealthy. Through more wealth per individual, we would be more equipt to deal with the climate crisis as it would be a higher priority for several families who are less worried about living paycheck to paycheck. The article believes that our levels of poverty and environmental damage indicate that we are both able to cause damage to our environment but not rich enough to fix it. The article believes that if we are able to fix issues with poverty, we should be able to greatly reduce our environmental impact.
Polluter Pay Principle:
The article says that the Polluter Pays Principle could assist in the provision of a basic income by proposing that the funds generated from taxing major polluters could help finance a global basic income, particularly for those living below the poverty line. By applying the polluter pays principle, governments could impose taxes on industries responsible for significant environmental degradation, such as fossil fuel companies, and redirect these revenues to address both environmental and social issues. This approach would not only incentivize pollution reduction, but also help to support poverty alleviation.
Conclusion:
The article ultimately advocates for a transformative approach to tackling environmental and economic challenges by addressing systemic inequality and holding polluters accountable. It suggests that policies like basic income and the polluter pay principle can create a synergistic effect, empowering individuals to prioritize sustainability while ensuring that those responsible for environmental harm contribute to its resolution. By fostering greater equity and accountability, such measures pave the way for a future where economic growth and environmental stewardship are not only compatible but mutually reinforcing, presenting a hopeful pathway for sustainable development.