by Thomas R. Wells
The world’s richest 1% have more purchasing power, and hence more command over what the economy produces than ordinary people. They can afford a more extravagant lifestyle – at the extreme including multiple yachts, mansions, and private jets. One may reasonably quibble with the way activists like Oxfam produce their numbers, but it is obviously true that the average 1 percenter has a far greater climate impact than the median person in a rich country, let alone the world. What a waste! What a crime against the planet! How can it be allowed to continue?
Oxfam, Guardian readers, an unfortunate number of my academic colleagues, and many others are confusing questions of fairness (whether huge economic inequality can be justified) with questions of harm (whether inequality speeds up climate change). Specifically, it can be true that
Per person, rich people do enormously more harm to the climate than ordinary people, and
Redistributing wealth from the rich to the poor would make the world fairer
Without it being true that
Redistributing rich people’s wealth would result in less harm to the climate
I. A Robin Hood tax on the rich would increase climate change
The reason is quite straightforward. Per dollar, rich people’s spending is far less carbon-intensive than that of ‘ordinary’ (middle-class) people, let alone the world’s poor. If the purchasing power of the rich were transferred to ordinary people, it would be spent on the things we want, which tend to be more carbon-intensive. The result would be an increase in total GHG emissions and an acceleration of global climate change.
Perhaps this needs more explanation.
Rich people — pretty much by definition — already have most of the material things they want. So most of their money is spent on more immaterial things, requiring far less energy and matter in their production and consumption, and far more labour. Because they are so much richer than ordinary people they can afford to directly employ people to serve their needs – cooks, nannies, gardeners and so on. Many of the material objects they do buy are produced in unnecessarily labour intensive — basically artisanal — ways, such as million dollar cars and Louis Vuitton handbags.
Some of this consumption may be because the rich like nice things, just like anyone else, and they can afford to have them. Some of it may be due to a spiritually empty desire to show off their status via conspicuous consumption. The important thing is that although the rich spend a lot of money the way they spend it is not particularly carbon intensive. At least, it is less carbon intensive than the way we middle class people spend our money, and much less than how the world’s poor do. Read more »