%0 Journal Article %1 starr2023incomebased %A Starr, Jared %A Nicolson, Craig %A Ash, Michael %A Markowitz, Ezra M. %A Moran, Daniel %D 2023 %I Public Library of Science %J PLOS Climate %K carbon_footprint climate_change income_inequality %N 8 %P 1-24 %R 10.1371/journal.pclm.0000190 %T Income-based U.S. household carbon footprints (1990–2019) offer new insights on emissions inequality and climate finance %U https://journals.plos.org/climate/article?id=10.1371/journal.pclm.0000190 %V 2 %X Current policies to reduce greenhouse gas (GHG) emissions and increase adaptation and mitigation funding are insufficient to limit global temperature rise to 1.5°C. It is clear that further action is needed to avoid the worst impacts of climate change and achieve a just climate future. Here, we offer a new perspective on emissions responsibility and climate finance by conducting an environmentally extended input output analysis that links 30 years (1990–2019) of United States (U.S.) household-level income data to the emissions generated in creating that income. To do this we draw on over 2.8 billion inter-sectoral transfers from the Eora MRIO database to calculate both supplier- and producer-based GHG emissions intensities and connect these with detailed income and demographic data for over 5 million U.S. individuals in the IPUMS Current Population Survey. We find significant and growing emissions inequality that cuts across economic and racial lines. In 2019, fully 40% of total U.S. emissions were associated with income flows to the highest earning 10% of households. Among the highest earning 1% of households (whose income is linked to 15–17% of national emissions) investment holdings account for 38–43% of their emissions. Even when allowing for a considerable range of investment strategies, passive income accruing to this group is a major factor shaping the U.S. emissions distribution. Results suggest an alternative income or shareholder-based carbon tax, focused on investments, may have equity advantages over traditional consumer-facing cap-and-trade or carbon tax options and be a useful policy tool to encourage decarbonization while raising revenue for climate finance.

@article{starr2023incomebased, abstract = {Current policies to reduce greenhouse gas (GHG) emissions and increase adaptation and mitigation funding are insufficient to limit global temperature rise to 1.5°C. It is clear that further action is needed to avoid the worst impacts of climate change and achieve a just climate future. Here, we offer a new perspective on emissions responsibility and climate finance by conducting an environmentally extended input output analysis that links 30 years (1990–2019) of United States (U.S.) household-level income data to the emissions generated in creating that income. To do this we draw on over 2.8 billion inter-sectoral transfers from the Eora MRIO database to calculate both supplier- and producer-based GHG emissions intensities and connect these with detailed income and demographic data for over 5 million U.S. individuals in the IPUMS Current Population Survey. We find significant and growing emissions inequality that cuts across economic and racial lines. In 2019, fully 40% of total U.S. emissions were associated with income flows to the highest earning 10% of households. Among the highest earning 1% of households (whose income is linked to 15–17% of national emissions) investment holdings account for 38–43% of their emissions. Even when allowing for a considerable range of investment strategies, passive income accruing to this group is a major factor shaping the U.S. emissions distribution. Results suggest an alternative income or shareholder-based carbon tax, focused on investments, may have equity advantages over traditional consumer-facing cap-and-trade or carbon tax options and be a useful policy tool to encourage decarbonization while raising revenue for climate finance.}, added-at = {2023-08-18T09:19:47.000+0200}, author = {Starr, Jared and Nicolson, Craig and Ash, Michael and Markowitz, Ezra M. and Moran, Daniel}, biburl = {https://www.bibsonomy.org/bibtex/29950cac258d8cbef86baad4969e48a0b/meneteqel}, doi = {10.1371/journal.pclm.0000190}, interhash = {b79850753b0c6ccb1639334ef1a98d2c}, intrahash = {9950cac258d8cbef86baad4969e48a0b}, journal = {PLOS Climate}, keywords = {carbon_footprint climate_change income_inequality}, language = {en}, month = {08}, number = 8, pages = {1-24}, publisher = {Public Library of Science}, timestamp = {2023-08-18T09:19:47.000+0200}, title = {Income-based U.S. household carbon footprints (1990–2019) offer new insights on emissions inequality and climate finance}, url = {https://journals.plos.org/climate/article?id=10.1371/journal.pclm.0000190}, volume = 2, year = 2023 }