A report from the universities of Oxford and Leiden, published in Communications Sustainability, shows that the wealthiest 10% of the world generates annual environmental damages between US$1.7 trillion and US$5.7 trillion. These costs fall on the entire society, including the poorest, deepening global inequality.
The study used the Environmental Pricing Handbook to quantify the impact of luxury consumption in four areas: climate change, biodiversity loss, nutrient pollution, and freshwater use.
Environmental bill per person
Each member of the wealthiest 10% should pay between US$2,300 and US$7,500 annually in environmental taxes. In the United States, the impact is much greater: between US$19,000 and US$63,000 per person, equivalent to 6%-20% of their income or 0.8%-3% of their wealth.
Researcher Inge Schrijver (Leiden University) noted: “The cost of the damages is greater than the money needed internationally for climate and biodiversity funds. If the polluter pays and that money is allocated to solutions, the difference would be enormous”.
Where the wealthiest 10% live
- United States and European Union: concentrate more than 60% of this group.
- EU: between 40% and 45% of the population belongs to the wealthiest segment.
- U.S.: more than half of the population is in this group.
- India and Egypt: barely 2% each.
This data reflects not only the environmental damage but also the global inequality.
Main damage factors
- Biodiversity loss: represents between 47% and 56% of the total impact.
- Climate change: between 36% and 45%.
- Other indicators such as ocean acidification or ozone depletion were not included, so the real bill would be even higher.
Beyond personal consumption
The study only considered the damages derived from the direct consumption of the wealthiest, not their investments. This means that the environmental footprint could be much higher if industries financed by this group were included.
Political implications
Researcher Paul Behrens (Oxford) emphasized that the wealthiest 10% not only causes the most damage but also has the greatest influence to reduce it:
- Their investments determine which industries expand.
- The companies they lead set decisions for the rest.
- Their lifestyles define what is considered normal in society.
Towards a “polluter pays” system
Experts propose that environmental taxation should focus on luxury consumption, not basic goods. This would allow:
- Financing the transition to sustainability.
- Improving equity by shifting the burden to the wealthiest 10%.
- Compensating lower-income households.
The study reveals that the wealthiest 10% of the world should pay an environmental bill that exceeds the global funds allocated to climate and biodiversity.
Implementing the principle of “polluter pays” would not only be fair but also a powerful tool to finance sustainable solutions and reduce inequality.
