Planetary Boundaries

• 7/9 crossed

• ecosystem services

• live in era anthropocene

• IPCC - international panel of climate change (1.5º Celsius)

environmental damage - central to macroeconomic analysis

why do you think we dont integrate ecological crisis in to understanding of…

• costs - global diffuse vs. gains - localized, individualized with vested interests

• Costs are random externalities 

  • concerted efforts

    • Conference of Parties (COP)

    • 1990’s treaty - COP

    • COP 30 Brazil Belém (where conference is)

    • Paris Agreement

link between inequality and environmental damage 

more unequal a society is the more possible responses are to environmental 

• the higher inequality the more vested interests

Environmental economics → prices, technology 

price of CO2 emissions

^^^^ Green Growth or Sustainable Growth 

Kenneth Balwing

Ecological economics 

UBI - Universal Basic Income

• interdisciplinary 

• transdisciplinary 

DEGROWTH (BBC documentary)

Pros and cons of UBI 

Pros of UBI (Potential Benefits)

1. Poverty Reduction and Income Security

• Provides a stable income floor for all citizens, reducing poverty and financial insecurity.

• Evidence from experiments (e.g., in Namibia and India) shows increased economic activity and improved living standards in low-income communities.

2. Simplification of Welfare Systems

• Replaces complex, conditional benefit systems with a single unconditional payment.

• Reduces bureaucracy and errors in welfare administration.

3. Stimulation of Demand and Economic Growth

• Increased household income raises consumption and aggregate demand, potentially stimulating GDP growth.

• Macroeconomic models (e.g., Roosevelt Institute, Cambridge Econometrics) show positive short-term effects through higher spending and fiscal stimulus.

4. Encouragement of Risk-Taking and Entrepreneurship

• Provides financial security that enables individuals to start businesses, pursue creative work, or retrain for new careers.

5. Improved Health, Education, and Wellbeing

• Empirical evidence (mainly from low-income countries) shows UBI can improve health, education access, and women’s empowerment.

• Reduces stress and negative health outcomes linked to conditional welfare systems.

6. Strengthened Bargaining Power and Freedom

• Gives workers more leverage to refuse poor working conditions or low wages (“exit option”).

• Enhances individual autonomy and freedom to choose non-market activities (e.g., caregiving, volunteering).

7. Potential Wage Increases

• In some contexts (e.g., Manitoba experiment), wages rose at the lower end of the income distribution as employers adjusted to retain workers.

8. Macroeconomic Stability

• In theory, UBI could act as an automatic stabilizer during recessions by maintaining household spending.

Cons of UBI (Potential Drawbacks and Challenges)

1. Reduced Labour Supply

• Experimental evidence (e.g., U.S. and Canadian Negative Income Tax trials) shows small but notable reductions in work hours, particularly among mothers.

• UBI may disincentivize work if income effects dominate (people choose more leisure when income rises).

2. High Fiscal Cost

• Large UBI programs require significant funding, often through higher income or consumption taxes, government borrowing, or reallocation of existing transfers.

• If not carefully designed, the cost can outweigh economic benefits.

3. Inflationary Pressure

• Increased household demand could raise prices, especially for housing and essentials.

• Some models suggest potential inflation effects if the policy is not offset by productivity gains or tax increases.

4. Uncertain Macroeconomic Outcomes

• Lack of real-world examples makes it hard to predict long-term effects on GDP, wages, and employment.

• Models vary widely in conclusions depending on assumptions and funding design.

5. Possible Negative Effects on GDP and Employment

• Some macroeconomic models (e.g., Penn Wharton model) show decreases in GDP, employment, and investment, especially when funded by government debt.

• Substitution effects from higher taxes can discourage work and private investment.

6. Inequality and Distributional Ambiguities

• Depending on funding methods, some lower- or middle-income households could become worse off if benefits replace targeted welfare.

• Redistribution effects depend heavily on tax structure and income profiles.

7. Design Complexity and Context Dependence

• The impact of UBI differs greatly based on the “size” of the scheme (e.g., small “tabby” vs. large “tiger” version) and national context.

• No universal conclusion—what works in Finland or Alaska may not work in developing economies.

8. Potential Migration and Competitiveness Issues

• Higher taxation or better welfare could encourage in-migration, straining resources.

• If funded by labor taxes, could reduce competitiveness and encourage outward migration (as shown in Fraser of Allender model).

9. Ethical and Political Concerns

• Critics argue that unconditional income might weaken the perceived link between work and reward.

• Others fear it could erode social cohesion or public support for welfare if perceived as unfair.

Summary Table

Summary Table

Overall Summary

The article presents UBI as a transformative global policy, not merely a reaction to automation but a moral and developmental imperative.
It argues that UBI could:

• End poverty and reduce inequality,

• Rebalance work-life priorities,

• Foster creativity and sustainability,

• And redefine economic progress toward well-being and dignity.