There is no human future without a basic income

There is no human future without a basic income

What does the future look like? No one knows and it is folly to argue one does. But we can think, we can even try to make predictions, depending on how much risk we are willing to take. To say, as Jeremy Rifkin suggests, that the future will look like a collaborative commons, based upon zero marginal cost, internet-linked nodal, laterally scalable shared green energized economy is all very well, and I definitely resonate with it, but is it inevitable? How zero cost is it? The price of generating an extra energy unit from a photovoltaic panel may be close to zero, but what about the panel itself? Who pays for it?

Proponents will say that photovoltaic panels are cheaper than they have ever been, huge economies of scale were possible in the last few years and any person these days can purchase photovoltaic panels. But is this true? Panels are cheaper than they were some years ago, no doubt, but a person first needs to eat, have a shelter, access some basic form of transportation and energy for cooking, lighting and such. Only after all that is guaranteed, can someone consider the photovoltaic panels, the electric car, or the 3D printer. The “future”, it seems, will not come until poverty is eliminated. Because poor people – 24.4 % of all European population was at risk of poverty in 2014, or 122 million people – cannot participate in this futuristic vision of the world unless their basic needs are met.

You doubt it? Then think about it. In most places, if you run out of money to pay for electricity, it is unlikely that your neighbors will help out by supplying you with some electricity, and even less likely that you will be given a photovoltaic system to produce your own energy. Where I live, at least, if I stop paying the electricity bill, they will cut me off, without a doubt. No matter how generous, how educated, how creative, how tolerant I might have been in life, the power company is completely indifferent: you do not pay, you will have to go without power. Period.

Things might be different in the future – and they certainly will. But at this moment the amount of money one has is less related to levels of education, generosity, creativity or tolerance, and more to status, power, social networks, dominance and violence. Attributing monetary value to people is a trap. The instant you say “this person is worth 1000 euros”, you automatically create an underclass of unworthy people. Those people might even be subject to discrimination and violence you object to, from deprivation and poverty to constant surveillance. So definitions or layers of worthiness cannot solve a core problem in present-day human species: our difficulty to share. To trust.

This is why I defend basic income. It represents a bold and clear statement: human dignity is not and must not be subject to discussions about worthiness or value. These attempts to quantify human beings are bound to fail, since our “value”, if we must speak of it, is incalculable. You cannot calculate it, so there is no use in trying. Basic income is also a crucial tool for participation. You cannot truly participate and contribute to a better society – let’s say by investing in a photovoltaic system – if you do not have the money to meet your basic needs.

This is why major societal challenges like climate change cannot be solved without addressing poverty. Because while there is poverty, people will simply not “do the right thing” when they cannot afford it. If the costs of living in a more sustainable way are higher than what they can afford, there is little choice but to eat whatever they can, drive the most affordable (and most polluting) vehicles. They buy the cheapest appliances which often break down, and if they can’t get a repair company similar to https:www.adamsapplianceco.com to fix it, the appliance then joins many others just like it in a landfill. All these mentioned are still among the major polluters we are trying to eliminate. But until poverty is tackled they will persevere to pollute our world.

Review of “Energy Security, Equality, and Justice,” by Sovacool, Sidortsov and Jones

Review of “Energy Security, Equality, and Justice,” by Sovacool, Sidortsov and Jones

Benjamin K. Sovacool, Roman V. Sidortsov, & Benjamin R. Jones, Energy Security, Equality, and Justice, Routledge, 2014, xix + 213 pp.

This book is a recent product of the Vermont Law School’s Institute for Energy and the Environment’s research on how to ‘equitably provide available, affordable, reliable, efficient, environmentally benign, proactively governed, and socially acceptable energy services to households and consumers’ (p.xvii). The aim of this book is to describe current inequalities and injustices associated with energy use and make suggestions as to how greater justice might be both understood and achieved.

As the first chapter points out, we are drifting ‘into a future threatened with climate change, rising sea levels, severe pollution, energy scarcity and insecurity, nuclear proliferation, and a host of other dangers’ (p.1), and our desire for low-cost and reliable energy conflicts with the pursuit of the sustainable and cleaner environment that we also wish and need to experience. The chapter provides enough evidence for these statements.

Chapter 2 is more philosophical, and concludes that ‘energy justice’ should be based on two principles:

  • a prohibitive principle: ‘energy systems must be designed and constructed in such a way that they do not unduly interfere with the ability of any person to acquire those basic goods to he or she is justly entitled’ (p.42);
  • and an affirmative principle: ‘if any of the basic goods to which every person is justly entitled can only be secured by means of energy services, then in that case there is also a derivative right to the energy service’ (p.46).

Because a sustainable and clean environment and a stable climate are basic goods to which we are all entitled, the prohibitive principle requires that the damaging externalities associated with energy production must be minimized.

Anyone who doubts the environmental and climate damage being done by the ways in which we currently produce energy should read chapter 3. The damage done to health by fuel poverty in the UK and elsewhere, and the volatile and increasing cost of carbon, are described in chapter 4 – John Hills’ Getting the Measure of Fuel Poverty ought to have been referenced. In chapter 5 the socio-political dimension is described in terms of corruption, authoritarianism and conflict, which are as problematic in the so-called developed world as in the developing world. Chapter 6 charts the disproportionate way in which the poorest communities fail to benefit from energy production and at the same time suffer the most from production methods. Chapter 7 describes widespread environmental damage and finds that the extension of conventional technologies can only increase inequality.

The impression left by this book is of ubiquitous environmental damage and fuel inequality, that is, damage and inequality in the world’s wealthiest as well as in the world’s poorest countries. The answer is not new technologies: the answer is to ask who is affected by investment and pricing decisions, and to factor in the externalities when relative costs are calculated. If this is done, then solar and wind power turn out to be both more just and cheaper than nuclear power or fossil fuels.

The problem is therefore a political one – a fact that could have been made more explicit in the book’s concluding chapter.

This book should be read alongside Fitzpatrick and Cahill‘s Environment and Welfare: Towards a Green Social Policy (Palgrave Macmillan, 2002), in which Tony Fitzpatrick suggests that a citizen’s income could encourage economic growth and therefore greater environmental damage, and James Robertson proposes a carbon tax to fund a citizen’s income, which would encourage renewable energy production at the same time as promoting income justice and therefore fuel justice. It should also be read alongside the recent Institute for Fiscal Studies’ report Energy use policies and carbon pricing in the UK which recognizes that an increased carbon tax is needed on domestic gas use and that this would require poorer households to be compensated. The acknowledged problem here is that such a compensation package would require an increase in means-testing, which would impose additional disincentives, administrative complexity and income volatility on those households least able to cope with them.

Energy Security, Equality and Justice lacks a bibliography, which is a pity, and its index is sketchy, which will make the book difficult to use as a reference volume. But it is a well argued and carefully evidenced discussion of issues vital to our future and it deserves a wide audience.

USA: Oregon introduces two Cap and Dividend Bills

USA: Oregon introduces two Cap and Dividend Bills

The Oregon legislature has introduced two bills aimed at making polluters pay more while dividing the proceeds among every Oregonian, a policy known as Cap and Dividend.

One of the bills, HB 3176, similar to that introduced by Chris Van Hollen in the federal Congress this year, plans to introduce permits for emitting carbon, which will then be sold at auction. The amount of permits will be reduced over time, reducing the amount of carbon emitted while increasing the money generated, in turn increasing or steadying the amount of money divided between citizens.

The other bill, HB 3250, would introduce a simple tax on carbon emissions, the revenue of which would also be divided between citizens. Either plan could lead to $500 – $1,500 being given to everyone in Oregon. This is not a Basic Income as it it is not enough to cover the basic needs for survival but it would be unconditionally granted to all, leading to some calling it a ‘partial basic income’.

The plans are similar to the Alaska Permanent Fund which does not gain money from polluters but rather invests in the state’s natural resources with the proceeds divided between all residents in a yearly check. This check comes to an average of around $1,000 a year. If the auction plan is adopted in Oregon, income to citizens would eventually decrease and end as the number of permits to emit carbon is reduced and eventually stopped, though this is not expected to happen until around 2050.

For more information, see:

Kristin Eberhard, “What If Polluters Paid and You Got the Money?”, Sightline Daily, 02 April 2015