How a carbon tax could help fund a Universal Basic Income

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🗞️ Driving the news: A new study suggests that taxing the world’s biggest carbon polluters could generate trillions of dollars annually, helping to fund a universal basic income (UBI) to address homelessness and poverty
• This approach would redistribute wealth while simultaneously reducing greenhouse gas emissions, tackling both climate change and economic inequality

🔭 The context: The proposal builds on models like Alaska's oil dividend, using carbon tax revenues to provide regular cash payments to citizens, with a focus on those most vulnerable to climate impacts
• Researchers from the University of British Columbia demonstrated that cash transfers significantly reduce homelessness, as seen in their 2018 Vancouver study

🌍 Why it matters for the planet: Funding UBI through a carbon tax would both incentivize emissions reductions and provide financial security, particularly for those affected by climate change, like the unhoused population

⏭️ What's next: Advocates argue for a global implementation of UBI funded by carbon taxes, envisioning a world where climate action directly supports economic stability and reduces poverty

💬 One quote: “People experiencing homelessness are the most vulnerable in any society... we need to see cash transfers as a climate adaptation solution,” said Jiaying Zhao, a University of British Columbia professor

📈 One stat: A carbon tax of $70 per ton of emissions could generate approximately $2.3 trillion annually, according to the study

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