Lucas Chancel

Wealth inequality dynamics influence economic and social outcomes and stability. While climate change and climate policies affect both physical capital and financial assets, their impacts on aggregate wealth and its distribution remain underexplored. Preliminary calculations suggest that climate change and climate investments could have substantial effects on wealth inequality, although the direction of these changes remains uncertain. This Perspective builds on numerical insights, outlines a conceptual framework and proposes a research agenda aimed at advancing the understanding of global wealth inequality under climate change, highlighting the need for interdisciplinary collaboration on the issue.

The triple climate inequality crisis, or in contributions, impacts and capacity to act within and between countries, is a central issue in addressing climate change. This Comment advocates for progressive wealth taxation as a viable solution to the finance gap.

This article estimates the evolution of income inequality in Africa from 1990 to 2019 by combining surveys, tax data, and national accounts. Inequality in Africa is very high: the regional top 10% income share nears 55%, on par with regions characterized by extreme inequality, such as Latin America and India. Most of continent-wide income inequality comes from the within-country component rather than from average income differences between countries. Inequality is highest in Southern Africa and lowest in Northern and Western Africa. It remained fairly stable from 1990 to 2019, with the exception of Southern Africa, where it increased significantly. Among historical determinants, this geographical pattern seems to reveal the long shadow of settler colonialism, at least in Sub-Saharan Africa; the spread of Islam stands out as another robust correlate. The poor quality of the raw data calls for great caution, in particular when analyzing country-level dynamics.

The climate crisis has begun to disrupt human societies by severely affecting the very foundations of human livelihood and social organisation. Climate impacts are not equally distributed across the world: on average, low- and middle-income countries suffer greater impacts than their richer counterparts. At the same time, the climate crisis is also marked by significant inequalities within countries. Recent research reveals a high concentration of global greenhouse gas emissions among a relatively small fraction of the population, living in emerging and rich countries. In addition, vulnerability to numerous climate impacts is strongly linked to income and wealth, not just between countries but also within them. The aim of this report is twofold. It endeavours first to shed light on these various dimensions of climate inequality in a systematic and detailed analysis, focusing on low- and middle-income countries in particular. It then builds on these insights, together with additional empirical work and interviews with experts, to suggest pathways to development cooperation, and tax and social policies that tackle climate inequalities at their core.

This reports sheds light on the various dimensions of climate inequality in a systematic and detailed analysis, focusing on low- and middle-income countries in particular. It then builds on these insights, together with additional empirical work and interviews with experts, to suggest pathways to development cooperation, and tax and social policies that tackle climate inequalities at their core.

All humans contribute to climate change but not equally. Here I estimate the global inequality of individual greenhouse gas (GHG) emissions between 1990 and 2019 using a newly assembled dataset of income and wealth inequality, environmental input-output tables and a framework differentiating emissions from consumption and investments. In my benchmark estimates, I find that the bottom 50% of the world population emitted 12% of global emissions in 2019, whereas the top 10% emitted 48% of the total. Since 1990, the bottom 50% of the world population has been responsible for only 16% of all emissions growth, whereas the top 1% has been responsible for 23% of the total. While per-capita emissions of the global top 1% increased since 1990, emissions from low- and middle-income groups within rich countries declined. Contrary to the situation in 1990, 63% of the global inequality in individual emissions is now due to a gap between low and high emitters within countries rather than between countries. Finally, the bulk of total emissions from the global top 1% of the world population comes from their investments rather than from their consumption. These findings have implications for contemporary debates on fair climate policies and stress the need for governments to develop better data on individual emissions to monitor progress towards sustainable lifestyles.

This article combines all available data to produce pretax and post-tax income inequality series in 26 European countries from 1980 to 2017. Our estimates are consistent with macroeconomic growth and comparable with US distributional national accounts. Inequality grew in nearly all European countries, but much less than in the US. Contrary to a widespread view, we demonstrate that Europe’s lower inequality levels cannot be explained by more equalizing tax and transfer systems. After accounting for indirect taxes and in-kind transfers, the US redistributes a greater share of national income to low-income groups than any European country. “Predistribution,” not “redistribution,” explains why Europe is less unequal than the United States. (JEL D31, E01, H23, H24, H50, I38)

Le rapport sur les inégalités mondiales 2022 propose une radiographie inédite des inégalités mondiales, avec la présentation des dernières données sur les écarts de revenu et de patrimoine à travers le monde, ainsi que de nouveaux résultats sur les injustices liées au genre et les inégalités environnementales. Ce travail, mené par une équipe de chercheurs franco-américains et reposant sur les efforts d’une centaine d’économistes à travers le monde, démontre avec force que les inégalités extrêmes qui caractérisent nombre de nos sociétés sont le résultat de choix politiques et n’ont rien d’une fatalité.