Government-imposed carbon levy redirected towards setting up nationwide unconditional cash benefits for citizens
In a recent statement, Nick Langridge posits that Universal Basic Income (UBI) is not a silver bullet for society's inequities, but it could play a significant role in addressing climate change and supporting vulnerable populations. One proposed approach is to implement a carbon tax as a dedicated revenue source for UBI, thereby mitigating climate change impacts on groups such as the homeless.
This model involves imposing a fee on carbon-intensive fuels or activities, with the revenue generated being used to fund regular cash payments to all individuals, including the most vulnerable. By taxing carbon emissions, primarily via fossil fuel consumption, governments can incentivize emission reductions and generate revenue for UBI payments.
Key components of this implementation include setting a Carbon Tax, revenue collection and management, UBI distribution, targeting vulnerable populations, integrating with broader climate policies, and addressing equity and social protection. Governments would need to establish clear legal frameworks and effective delivery mechanisms to ensure funds are directed towards the most vulnerable and promote equitable climate resilience.
A study analysing 186 countries suggests that a UBI funded by a carbon tax could reduce greenhouse gas emissions and alleviate poverty, potentially accumulating $2.3 trillion annually globally. In practice, this means designing a robust carbon taxation policy that progressively raises costs on carbon emissions, with the generated funds automatically channelled into UBI payments.
Evidence from the field supports this approach. For instance, a program led by the University of Denver's Center for Housing and Homelessness Research distributed various sums of money to 807 homeless individuals in Denver for 12 months. After 10 months, participants saw improvements in their housing outcomes and spent less time in shelters.
On a larger scale, the world's largest UBI study is underway in Kenya, where nonprofit GiveDirectly is handing out money to 23,000 people. Preliminary findings suggest that families in the Kenyan study have been able to save more money, start businesses, and alleviate mental health stresses.
However, the implementation of such a policy is not without controversy. In 2018, voters in Seattle rejected a carbon tax proposal, and the French erupted in mass protest when President Emmanuel Macron increased the carbon tax. To address these concerns, Langridge suggests that a UBI funded by carbon taxes could help the public be more accepting of them, and governments could also tax the ultra-wealthy and luxury goods.
As the impacts of climate change continue to escalate, the economic benefits of a UBI funded by a carbon tax outweigh the cost, according to the study. With record-high numbers of people experiencing homelessness and heat-related deaths on the rise, this approach could provide a much-needed safety net for those most affected by climate change.
- The proposed model involves taxing carbon emissions, primarilly via fossil fuel consumption, to fund a universal basic income (UBI), which could play a significant role in addressing climate change and supporting vulnerable communities.
- In this system, governments aim to incentivize emission reductions and generate revenue for UBI payments, making key components of the implementation a carbon tax, revenue collection and management, UBI distribution, and targeting vulnerable populations.
- A study of 186 countries indicates that a UBI funded by a carbon tax could potentially accumulate $2.3 trillion annually globally, reduce greenhouse gas emissions, and alleviate poverty.
- In practice, this means establishing a robust carbon taxation policy that progressively raises costs on carbon emissions, with the generated funds automatically channelled into UBI payments.
- Evidence from programs, such as the one led by the University of Denver's Center for Housing and Homelessness Research, shows improvements in housing outcomes and reduced shelter time for homeless individuals when provided regular cash payments.
- On a larger scale, an ongoing UBI study in Kenya, led by nonprofit GiveDirectly, is handing out money to 23,000 people, with preliminary findings suggesting families are able to save more money, start businesses, and alleviate mental health stresses.
- Despite the potential benefits, the implementation of such a policy is not without controversy, as seen with the rejection of a carbon tax proposal in Seattle and mass protests in France over carbon tax increases.
- To address these concerns, it is suggested that a UBI funded by carbon taxes could help the public accept them, and governments could also tax the ultra-wealthy and luxury goods.
- With record-high numbers of people experiencing homelessness and heat-related deaths on the rise due to climate change, this approach could provide a much-needed safety net for those most affected.
- Addressing climate change and supporting vulnerable communities through a UBI funded by a carbon tax could have positive implications for the environment, the economy, and general news, as well as policy-and-legislation and politics, housing-market and real-estate, science, finance, investing, business, art, and the overall industry and sustainability of the community.
