Providing a universal basic income (UBI) worldwide could boost economies and address environmental challenges, according to new research. 

New analysis indicates that implementing a basic income scheme could increase the global gross domestic product (GDP) by 130 per cent.

Researchers propose funding the UBI through an emissions tax on carbon dioxide (CO2) emitters. 

This approach not only aims to support economic growth but also to mitigate environmental degradation. 

“We are proposing that if we can couple basic income with environmental protection, we can save two birds with one stone,” says first author Ussif Rashid Sumaila of the University of British Columbia in Vancouver.

The research team estimated that providing a basic income to the entire world population of 7.7 billion people would cost approximately AU$61 trillion. 

Focusing the initiative on the 9.9 million individuals living below the poverty line in less developed countries would cost around AU$662 billion. 

In return, the researchers predict that the global GDP could increase by AU$244 trillion, which is about 130 per cent of the current GDP.

Sumaila explains that every dollar spent on implementing basic income could generate up to $7 in economic impacts.

“If you give someone one dollar, they will spend part of the money to buy food or pay rent. And people that are paid for the food and accommodation will use part of this for their own consumption and so on. The dollar will trickle up throughout society. Our calculations show that the economic impact of that dollar will be much greater than its original amount,” he said. 

To fund the basic income program, the team suggests taxing CO2 emitters, which could generate approximately AU$3.4 trillion annually. 

This revenue would be sufficient to provide a basic income for all people living below the poverty line in less developed countries.

The researchers also explore other funding options, such as a plastic pollution tax or redirecting subsidies from harmful industries like oil, gas, agriculture, and fisheries. These measures aim to tackle two major global issues: reducing environmental harm and alleviating poverty.

Real-world examples support the potential benefits of basic income programs. 

In Indonesia, villages receiving a basic income have reported significantly lower deforestation rates compared to those without such support.

Sumaila acknowledges the challenges of implementing carbon taxes but emphasises the importance of holding polluters accountable. 

“It’s not easy to implement carbon taxes, but that doesn’t stop our academics from reporting the evidence we have. Besides, we are not taxing everyone, just those who pollute the environment. They should pay for the damage they caused,” he says.

Additionally, Sumaila says basic income can serve as a proactive measure, enhancing community resilience during crises like pandemics or natural disasters. 

“We saw during COVID-19, governments around the world were coming up with all sorts of programs to support people who suddenly lost their ability to earn income. If we had basic income in place, we didn’t have to scramble,” he said. 

The study has been published in the journal Cell Reports Sustainability.