Less global inequality can improve climate outcomes

TLDR

Climate change mitigation and reducing economic inequality are two major global challenges that some studies claim conflict because higher‑income spending tends to be less carbon intensive. The study aims to refute this perceived conflict. Using income elasticity ranges of 0.7–1.0 and SSP4/SSP5 scenarios, the authors model the impact of extreme intra‑ and inter‑country inequality reductions on emissions. Results show that even with aggressive inequality reduction, within‑country emissions rise less than 8% over decades, and global income convergence can lower emissions intensity, indicating that focusing on inequality–climate synergies is more fruitful than the narrow framing. The article is categorized under Climate and Development > Sustainability and Human Well‑Being.

Abstract

Two of the biggest global challenges we face today are mitigating climate change and economic inequality. Some research suggests these goals are in conflict, based largely on the observation that a dollar spent at higher income levels is less carbon intensive than at lower income levels. We put this concern to rest. We quantify this effect in its most extreme manifestation, both within countries and between countries. We use a wide range of income elasticities of emissions (0.7–1.0) and scenarios from the Shared Socioeconomic Pathways (SSP) with the highest (SSP4) and lowest (SSP5) between‐country inequality. Within countries, even with assumptions of low elasticities (0.7) and aggressive inequality reduction (Gini coefficient of 0.55 to 0.30), emissions would realistically increase by less than 8%, which would likely occur over several decades. Income convergence between countries may reduce the emissions intensity of global income growth, because the energy intensity reductions from income growth in emerging economies, such as India and China, offsets the energy increasing effect of higher growth in developing countries. Given these findings, it seems a distraction for future research to dwell on this narrow framing when there are deeper under‐explored linkages and synergies between reducing income inequality and climate change, such as the effect of reducing inequality on social norms, consumption and on political mobilization around climate policy. This article is categorized under: Climate and Development > Sustainability and Human Well‐Being