Researchers have found that implementing basic income could double global GDP while reducing greenhouse gas emissions.

Much has already been said and written about basic income. Some see it as a promising idea that could combat poverty, while others worry that its financial viability is questionable and that it could have negative effects on the labor market. In a new study published in the journal Sustainability Cell ReportsResearchers have once again taken up this controversial topic. The results show that basic income may not be a bad idea after all.

More about basic income
Basic income is an idea in which every citizen or resident of a country receives a fixed amount from the government on a regular basis, in addition to his or her own salary. The main goal is to provide everyone (regardless of their social or economic background) with a basic level of financial security. Basic income offers many advantages. It eliminates the complex benefits and benefits system, which greatly reduces bureaucracy. Moreover, basic income could be crucial for the future, especially as more and more people may be left out of the loop due to ongoing technological developments. However, despite the advantages, there are also many opponents. The common argument is that it will make people lazy. Why would you continue to work if you receive a large sum of money from the government every month?

According to a recent analysis, regularly distributing money to all people around the world could be good for the economy and the climate. This could also lead to a significant increase in global GDP. By financing basic income through taxes on carbon emissions, we can also reduce environmental pollution. “We propose that if we combine basic income with environmental protection, we will kill two birds with one stone,” researcher Rachid Sumaila said.

Fishing subsidies
Sumaila believes that basic income can solve many problems. Previously, he actively campaigned for an end to harmful fisheries subsidies on a global scale. But this brought not only benefits. For people in developing countries, people who depend on fishing for their livelihoods say they need these subsidies. “A potential solution to this problem is to give people a basic income,” Sumaila suggests. “This way we can achieve sustainability goals without putting people’s livelihoods at risk.”

Basic income
Providing a basic income is not cheap. The research team estimated that providing a basic income for the world’s population of 7.7 billion people would cost $41 trillion. If people living below the poverty line in less developed countries received only a basic income, it would cost about $442 billion. But the benefits are great. If all people on Earth were given a basic income, it could increase global GDP by $163 trillion, which represents about 130% of current GDP.

Economy
According to the analysis, every dollar invested in implementing basic income could generate up to $7 in economic impact. Why? When a dollar is spent, the money will spread throughout the community: some of it is spent on food or rent, then others use it for their own expenses, and so on. “The dollar will flow through the community,” says Samila. “Our calculations show that the impact of each dollar on the economy will be much greater than its original value.”

Finance
The team also explored ways to finance basic income. They calculated that taxing carbon emissions could generate about $2.3 trillion annually. This would be sufficient to provide a basic income to all people living below the poverty line in least developed countries. Sumaila recognizes that enforcing carbon taxes can be a challenge. However, he thinks it’s worth considering. He stressed: “We are not focusing on imposing taxes on everyone, but only on those who pollute the environment.” “They have to pay for the damage they caused.”

other options
Researchers also suggest alternative financing options. For example, a basic income could also be paid for by taxing plastic pollution. Or money currently allocated to harmful subsidies for oil, gas, agriculture and fishing. These approaches can address two important global challenges: reducing environmental damage and combating poverty.

Examples
Basic income is not just an idea on paper; It is already practiced in certain parts of the world. Many practical examples have shown the benefits this can bring. Take Indonesia, where villages with a basic income suffer less deforestation than villages without a basic income.

Covid-19
Moreover, Sumaila emphasizes that basic income can also be a proactive programme. It can increase communities’ resilience when they face crises such as epidemics or natural disasters. “During the COVID-19 period, we have seen governments around the world coming up with different programs to support people who suddenly lost their income due to the pandemic,” Sumaila points out. “If there had been a basic income at that time, we would not have had to act so quickly.”

In sum, the study shows how basic income could provide a potential solution to many of the challenges we currently face in the world. But are countries really open to it? Time will tell.