Jun 25th 2020

Affluence is killing the planet, warn scientists

by Thomas Wiedmann, Julia K. Steinberger and Manfred Lenzen

 

Thomas Wiedmann is Professor of Sustainability Research at the UNSW.  

Julia K. Steinberger is Professor in Social Ecology and Ecological Economics at the University of Leeds.

Manfred Lenzen is Professor of Sustainability Research, School of Physics at the University of Sydney  

 

Would you like to be rich? Chances are your answer is: “Yes! Who wouldn’t want to be rich?” Clearly, in societies where money can buy almost everything, being rich is generally perceived as something good. It implies more freedom, fewer worries, more happiness, higher social status.

But here is the catch: affluence trashes our planetary life support systems. What’s more, it also obstructs the necessary transformation towards sustainability by driving power relations and consumption norms. To put it bluntly: the rich do more harm than good.

This is what we found in a new study for the journal Nature Communications. Together with co-author Lorenz Keyßer from ETH Zürich, we reviewed recent scientific literature on the links between affluence and environmental impacts, on the systemic mechanisms leading to overconsumption and on possible solutions to the problem. The article is one of a series of Scientists’ Warnings to Humanity.

Technology and consumption

The facts are clear: the wealthiest 0.54%, about 40 million people, are responsible for 14% of lifestyle-related greenhouse gas emissions, while the bottom 50% of income earners, almost 4 billion people, only emit around 10%. The world’s top 10% income earners are responsible for at least 25% and up to 43% of our environmental impact.

Most people living in developed countries would fit into this category, meaning you don’t have to consider yourself rich in order to be globally affluent. Even many poorer people in wealthy countries have a disproportionately large and unsustainable resource footprint compared to the global average.

It is less clear, however, how to address the problems that come with affluence. Progressive mainstream policymakers talk about “greening consumption” or “sustainable growth” to “decouple” affluence from climate breakdown, biodiversity loss and other planetary-scale destruction.

Yet our research confirms that, in reality, there is no evidence that this decoupling is actually happening. While technological improvements have helped to reduce emissions and other environmental impacts, the worldwide growth in affluence has consistently outpaced these gains, driving all the impacts back up.

And it appears highly unlikely that this relationship will change in the future. Even the cleanest technologies have their limitations and still require specific resources to function, while efficiency savings often simply lead to more consumption.

If technology alone is not enough, it is therefore imperative to reduce the consumption of the affluent, resulting in sufficiency-oriented lifestyles: “better but less”. This is all easier said than done though, for there is a problem.

The super-affluent

The lockdown has seen a massive drop in consumption. But the resulting unprecedented dive in CO₂ and air pollutant emissions was merely incidental to the lockdown, not a deliberate part of it, and will not last.

So how can we reduce consumption as much as necessary in a socially-sustainable way, while still safeguarding human needs and social security? Here it turns out the main stumbling block is not technological limits or economics itself, but the economic imperative to grow the economy, spurred by overconsumption and the political power of the super-affluent.

Affluent, powerful people and their governments have a vested interest in deliberately promoting high consumption and hampering sufficiency-oriented lifestyles. Since consumption decisions by individuals are strongly influenced by information and by others, this can lock in high-consumption lifestyles.

“Positional consumption” is another key mechanism, where people increasingly consume status goods once their basic needs are satisfied. This creates a growth spiral, driven by the affluent, with everyone striving to be “superior” relative to their peers while the overall consumption level rises. What appears average or normal in a developed country then rapidly becomes a top contribution at the global level.

So, how can we get out of this dilemma?

We reviewed a variety of different approaches that may have the solution. They range from reformist to radical ideas, and include post-development, degrowth, eco-feminism, eco-socialism and eco-anarchism. All these approaches have in common that they focus on positive environmental and social outcomes and not on economic growth. Interestingly, there seems to be quite some strategic overlap between them, at least in the short term. Most agree on the necessity to “prefigure” bottom-up as much as possible of the new, less affluent, economy in the old, while still demonstrating sufficiency-oriented lifestyles to be desirable.

Grassroots initiatives such as Transition Initiatives and eco-villages can be examples of this, leading to cultural and consciousness change. Eventually, however, far-reaching policy reforms are needed, including maximum and minimum incomes, eco-taxes, collective firm ownership and more. Examples of policies that start to incorporate some of these mechanisms are the Green New Deals in the US, UK and Europe or the New Zealand Wellbeing Budget 2019.

Social movements will play a crucial role in pushing for these reforms. They can challenge the notion that riches and economic growth are inherently good and bring forward “social tipping points”. Ultimately, the goal is to establish economies and societies that protect the climate and ecosystems and enrich people with more wellbeing, health and happiness instead of more money.

Thomas Wiedmann, Professor of Sustainability Research, UNSW; Julia K. Steinberger, Professor in Social Ecology and Ecological Economics, University of Leeds, and Manfred Lenzen, Professor of Sustainability Research, School of Physics, University of Sydney

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Browse articles by author

More Current Affairs

Mar 18th 2024
EXTRACT: "....the UK’s current economic woes – falling exports, slowing growth, low productivity, high taxes, and strained public finances – underscore the urgency of confronting Brexit’s catastrophic consequences."
Mar 18th 2024
EXTRACTS: Most significant of all, Russia’s Black Sea fleet has suffered significant losses over the past two years. As a result of these Ukrainian successes, the Kremlin decided to relocate the Black Sea fleet from Sevastopol to Novorossiysk on the Russian mainland. Compare that with the situation prior to the annexation of Crimea in 2014 when Russia had a secure lease on the naval base of Sevastopol until 2042." --- "Ukrainian efforts have clearly demonstrated, however, that the Kremlin’s, and Putin’s personal, commitment may not be enough to secure Russia’s hold forever. Kyiv’s western partners would do well to remember that among the spreading gloom over the trajectory of the war."
Mar 8th 2024
EXTRACT: "As the saying goes, 'It’s the economy, stupid.' Trump’s proposed economic-policy agenda is now the greatest threat to economies and markets around the world."
Mar 8th 2024
EXTRACT: "Russia, of course, brought all these problems on itself. It most certainly is not winning the war, either militarily or on the economic front. Ukraine is recovering from the initial shock, and if robust foreign assistance continues, it will have an upper hand in the war of attrition."
Mar 8th 2024
EXTRACT: "...... with good timing and good luck, enabled Trump to defeat [in 2016] political icon Hillary Clinton in a race that appeared tailor-made for her. But contrary to what Trump might claim, his victory was extremely narrow. In fact, he lost the popular vote by 2.8 million votes – a larger margin than any other US president in history. Since then, Trump has proved toxic at the ballot box. " -----"The old wisdom that 'demographics is destiny' – coined by the French philosopher Auguste Comte – may well be more relevant to the outcome than it has been to any previous presidential election. "----- "Between the 2016 and 2024 elections, some 20 million older voters will have died, and about 32 million younger Americans will have reached voting age. Many young voters disdain both parties, and Republicans are actively recruiting (mostly white men) on college campuses. But the issues that are dearest to Gen Z’s heart – such as reproductive rights, democracy, and the environment – will keep most of them voting Democratic."
Mar 8th 2024
EXTRACTS: "How can America’s fundamentalist Christians be so enthusiastic about so thoroughly un-Christian a politician?" ---- "If you see and think outside the hermeneutic code of Christian fundamentalism, you might be forgiven for viewing Trump as a ruthless, wholly self-interested man intent on maximizing power, wealth, and carnal pleasure. What your spiritual blindness prevents you from seeing is how the Holy Spirit uses him – channeling the 'secret power of lawlessness,' as the Book of 2 Thessalonians describes it – to restrain the advent of ultimate evil, or to produce something immeasurably greater: the eschaton (end of history), when the messiah comes again."
Mar 1st 2024
EXTRACT: "The lesson is that laws and regulatory structures are critical to state activities that produce local-level benefits. If citizens are to push for reforms and interventions that increase efficiency, promote inclusion, and enable entrepreneurship, innovation, and long-term growth, they need to recognize this. The kind of effective civil society Nilekani envisions thus requires civic engagement, empowerment, and education, including an understanding of the rights and responsibilities implied by citizenship."
Feb 9th 2024
EXTRACT: "Despite the widespread belief that the global economy is headed for a soft landing, recent trends offer little cause for optimism."
Feb 9th 2024
EXTRACT: " Consider, for example, the ongoing revolution in robotics and automation, which will soon lead to the development of robots with human-like features that can learn and multitask the way we do. Or consider what AI will do for biotech, medicine, and ultimately human health and lifespans. No less intriguing are the developments in quantum computing, which will eventually merge with AI to produce advanced cryptography and cybersecurity applications."
Feb 9th 2024
EXTRACTS: "The implication is clear. If Hamas is toppled, and there is no legitimate Palestinian political authority capable of filling the vacuum it leaves behind, Israel will probably find itself in a new kind of hell." ----- "As long as the PLO fails to co-opt Hamas into the political process, it will be impossible to establish a legitimate Palestinian government in post-conflict Gaza, let alone achieve the dream of Palestinian statehood. This is bad news for both Israelis and Palestinians. But it serves Netanyahu and his coalition of extremists just fine."
Jan 28th 2024
EXTRACTS: "According to estimates by the United Nations, China’s working-age population peaked in 2015 and will decline by nearly 220 million by 2049. Basic economics tells us that maintaining steady GDP growth with fewer workers requires extracting more value-added from each one, meaning that productivity growth is vital. But with China now drawing more support from low-productivity state-owned enterprises, and with the higher-productivity private sector remaining under intense regulatory pressure, the prospects for an acceleration of productivity growth appear dim."
Jan 28th 2024
EXTRACT: "When Chamberlain negotiated the notorious Munich agreement with Hitler in September 1938, The Times did not oppose the transfer of the Sudetenland to Germany without Czech consent. Instead, Britain’s most prestigious establishment broadsheet declared that: “The volume of applause for Mr Chamberlain, which continues to grow throughout the globe, registers a popular judgement that neither politicians nor historians are likely to reverse.” "
Jan 4th 2024
EXTRACTS: "Another Trump presidency, however, represents the greatest threat to global stability, because the fate of liberal democracy would be entrusted to a leader who attacks its fundamental principles." ------"While European countries have relied too heavily on US security guarantees, America has been the greatest beneficiary of the post-war political and economic order. By persuading much of the world to embrace the principles of liberal democracy (at least rhetorically), the US expanded its global influence and established itself as the world’s “shining city on a hill.” Given China and Russia’s growing assertiveness, it is not an exaggeration to say that the rules-based international order might not survive a second Trump term."
Dec 28th 2023
EXTRACT: "For the most vulnerable countries, we must create conditions that enable them to finance their climate-change mitigation" ........ "The results are already there: in two years, following the initiative we took in Paris in the spring of 2021, we have released over $100 billion in special drawing rights (SDRs, the International Monetary Fund’s reserve asset) for vulnerable countries.By activating this “dormant asset,” we are extending 20-year loans at near-zero interest rates to finance climate action and pandemic preparedness in the poorest countries. We have begun to change debt rules to suspend payments for such countries, should a climate shock occur. And we have changed the mandate of multilateral development banks, such as the World Bank, so that they take more risks and mobilize more private money."
Dec 27th 2023
EXTRACT: "....if AI causes truly catastrophic increases in inequality – say, if the top 1% were to receive all pretax income – there might be limits to what tax reforms could accomplish. Consider a country where the top 1% earns 20% of pretax income – roughly the current world average. If, owing to AI, this group eventually received all pretax income, it would need to be taxed at a rate of 80%, with the revenue redistributed as tax credits to the 99%, just to achieve today’s pretax income distribution; funding the government and achieving today’s post-tax income distribution would require an even higher rate. Given that such high rates could discourage work, we would likely have to settle for partial inequality insurance, analogous to having a deductible on a conventional insurance policy to reduce moral hazard."
Dec 21st 2023
EXTRACT: "Shocks are here to stay, and our task is not to predict the next one – although someone always does – but to sharpen our focus on resilience. Staying the course of politically mandated policies while minimizing the inevitable dislocations is easier said than done. But that is no excuse to fall for the myth of being victimized by the unprecedented."
Dec 21st 2023
EXTRACTS: "A new world is indeed emerging. It will be characterized not only by more interdependencies, but also by more insecurity, danger, and war. Stability in international relations will become a foreign concept from a bygone age – one that we did not fully appreciate until it was gone."
Dec 14th 2023
EXTRACT: "Yet one must never forget that Putin is first and foremost an intelligence officer whose dominant trait is suspicion."
Dec 2nd 2023
EXTRACTS: "In a recent commentary for the Financial Times, Martin Wolf trots out the specter of a 'public-debt disaster,' that recurrent staple of bond-market chatter. The essence of his argument is that since debt-to-GDP ratios are high, and eminent authorities are alarmed, 'fiscal crises' in the form of debt defaults or inflation “loom. And that means something must be done.' ----- "If, as Wolf fears, 'real interest rates might be permanently higher than they used to be,' the culprit is monetary policy, and the real risk is not rich-country public-debt defaults or inflation. It is recession, bankruptcies, and unemployment, along with inflation." ---- "Wolf surely knows that the proper remedy is for rich-country central banks to bring interest rates back down. Yet he doesn’t want to say it. He seems to be caught up, possibly against his better judgment, in bond vigilantes’ evergreen campaign against the remnants of the welfare state."
Nov 27th 2023
EXTRACT: "The first Russia, comprising those living in Russia’s two biggest cities, Moscow and Saint Petersburg, can pretend there is no war at all." ---- "Then there is the other Russia, the one you find in small towns and villages scattered across the country’s massive territory. Here, the Ukraine war is a source of patriotic pride,"