Climate justice: The intersection of economics, the environment, and inequality
2 Inequality in emissions
The responsibility for emissions of greenhouse gases is not shared equally. There are stark differences both between countries and between different groups within countries. These are mostly due to income levels and consumption patterns, as higher income is associated with higher consumption and higher emissions, mediated by culture and lifestyle choices.
Within and between regions
Figure 2 shows the diverse per capita greenhouse gas emission profiles of six world regions and three income groups within each region for the year 2019. Two facts stand out in this figure:
- Between regions, North America has by far the largest emissions per person for each income group. Not only do the top 10% of North Americans emit 72% more than the top 10% of East Asians (the second-largest emitters), but also the middle 40% in North America emits more than the top 10% in Latin America, South and Southeast Asia, and sub-Saharan Africa. Even the bottom 50% of North Americans emit more than the top 10% in sub-Saharan Africa.
- Within regions, the top 10% of the income distribution emits considerably more per person than the middle 40% and bottom 50%, although the extent of this inequality does not vary systematically with the level of emissions. In MENA (Middle East and North Africa) and sub-Saharan Africa, the top 10% emits roughly 15 times more than the bottom 50%, while in North America this ratio is 6.6 times more.
Tons of CO2 equivalent, or tCO2e, expresses the warming impact of all greenhouse gases using a common scale. Each gas is converted into the amount of CO2 that would cause the same warming, using a measure called global warming potential (GWP). GWP compares how much heat a gas traps in the atmosphere relative to CO2, which has a GWP of 1. For example, methane has a GWP of around 28, meaning that 1 ton of methane warms the planet as much as 28 tons of CO2, so it is counted as 28tCO2e.
Figure 2 Carbon footprints per person, by region (2019).
Figure 4 in Chancel, Bothe, and Voituriez. 2023. Climate Inequality Report 2023.
Exercise 1 Your carbon footprint
- Use this carbon footprint calculator to calculate your carbon footprint. (Select the country you live in to receive more tailored feedback on your answers.) Pay attention to the questions used to calculate a person’s carbon footprint.
- Compare your carbon footprint with the numbers in Figure 2. Which groups/regions is your carbon footprint similar to?
- Based on how the carbon footprint was calculated, suggest some specific reasons for the differences between regions and within populations.
- Theil index
- An inequality metric derived from information theory that decomposes inequality into within-group and between-group components.
The extent of within-country and between-country emissions inequality has changed considerably over the past 35 years. To measure this inequality, we use the Theil index, which ranges from 0 (or 0%, indicating perfect equality) to 1 (or 100%, indicating maximum inequality). The ‘Find out more’ box below explains how to calculate the Theil index, its decomposition property, and why it is useful as a measure of inequality.
To learn more about global trends in income inequality, read Section 19.1 of The Economy 1.0.
Figure 3 shows that according to this measure, in 1990 almost two-thirds of the inequality in emissions was due to differences between countries compared to one-third of emissions inequality due to differences within countries, but by 2019 those numbers had flipped around. This change has occurred because of forces operating both between countries and within them:
The income elasticity of emissions refers to how much emissions change with income. Mathematically this is defined as \(\frac{\partial E}{\partial I} \times \frac{I}{E}\), where \(E\) are emissions and \(I\) is income. If \(\frac{\partial E}{\partial I} \times \frac{I}{E}> 0\), an increase in income leads to an increase in emissions, and vice versa. A positive income elasticity of less than one means that emissions increase by less (in percentage terms) than income does.
- Between countries, formerly low-emitting countries (particularly China and India) have rapidly increased emissions as they industrialized, while many high-emitting countries have decreased them (particularly the US, which remains the second biggest emitter, and many European countries).
- Within countries, rising inequalities in income over the same period has implied rising inequalities in emissions between income groups, given that in all countries the income elasticity of emissions is positive, albeit less than one.1
Figure 3 Global inequality of individual emissions: between-country vs within-country inequality (1990–2019), using the Theil index of inequality.
Figure D in Chancel, Bothe, and Voituriez. 2023. Climate Inequality Report 2023.
Question 1 Choose the correct answer(s)
What trend is observed when comparing per capita emissions across income groups? Choose the correct option(s).
- Figure 2 shows that per capita emissions increase with income.
- Figure 2 shows that per capita emissions increase with income, and the top 10% in the income distribution have the highest emissions.
- Figure 2 shows that per capita emissions increase with income, and the top 10% in the income distribution have the highest emissions.
- Figure 2 shows that per capita emissions are lower in regions such as sub-Saharan Africa compared to regions such as North America.
Emissions by global income groups
Instead of breaking down the data by national and regional borders, Figure 4 shows per capita emissions growth for percentiles of the global population over the period 1990 to 2019. The combination of within-country and between-country forces described earlier in this section has implied a non-linear growth rate of emissions by percentiles of individual emitters between 1990 and 2019.
Figure 5 shows the resultant degree of global emissions inequality in 2019, measured in tons of CO2 equivalent (tCO2e). This measure is a standard unit that converts all greenhouse gas emissions into their equivalent amount of CO2.
From analysing the absolute and relative emissions of the bottom 50%, middle 40%, top 10%, and top 1%, two facts stand out:
- In absolute terms, emissions grow exponentially towards the top of the income distribution. While the bottom 50% of the global population averaged yearly emissions of 1.4 tCO2e/capita in 2019, the emissions of the top 1% averaged 101 tCO2e/capita, which is 72 times greater.
- In relative terms, emissions follow a 50:10 rule. The bottom 50% of the global population emits roughly 10% of global emissions while the top 10% emits roughly 50% of global emissions.
Figure 5 2019 greenhouse gas emissions (top panel) and shares in world total (bottom panel), by global emitter group.
Figure 3 in Chancel, Bothe, and Voituriez. 2023. Climate Inequality Report 2023.
To explore more data on the relationship between income and emissions, visit Our World in Data’s ‘Global inequalities in CO2 emissions’ webpage.
Exercise 2 Calculating inequality
Note: To do this exercise, you should be familiar with using Lorenz curves to calculate the Gini coefficient. These concepts are covered in Section 2.2 of The Economy 2.0: Macroeconomics.
- Use the information in the top panel of Figure 5 to calculate the Theil index in greenhouse gas emissions. Provide a one-sentence interpretation of your answer. (The formula for the Theil index is in the ‘Find out more’ box earlier in this section. Remember that each emitter group is a different size.)
- Draw a Lorenz curve for greenhouse gas emissions, with the cumulative share of the population on the horizontal axis and the cumulative share of emissions on the vertical axis.
- Using your Lorenz curve from Question 2, calculate and interpret the Gini coefficient. What information does the Lorenz curve and Gini coefficient provide that the Theil index does not?
Question 2 Choose the correct answer(s)
Read the following statements about the ‘50:10 rule’ and choose the correct option(s).
- This statement is shown in Figure 5.
- This statement is shown in Figure 5.
- The 50:10 rule refers to percentiles of the global population, not a specific number of countries.
- The 50:10 rule refers to the distribution of global emissions, and does not make comparisons to global averages.
Emissions per country
Global actions to address climate change have been historically negotiated by country delegations under the Conferences of the Parties (COP), which are part of the United Nations Framework Convention on Climate Change (UNFCCC). The UNFCCC is an international environmental treaty to combat climate change by limiting average global temperature increases. Given this international jurisdiction, a recognition of the importance of country-level emissions inequalities is crucial in order to understand the responsibilities, alliances, demands, and bottlenecks in negotiations.
Figure 6 shows that from 1950 to 2005, the US was the largest emitter, but China has taken the lead since then. In 2023, 20 countries accounted for 80% of global emissions, and the other 194 shared the remaining 20%. In fact, the eight top-emitting countries accounted for 66% of emissions, with China, the US, and India responsible for 31.5%, 13.0%, and 8.1% of total emissions respectively. On the other hand, the bottom 112 countries accounted for only 1% of the total. This makes the US and China the two key players for climate negotiations, given both their contribution to the problem and their economic and technological capacity to deal with it.
Figure 6 Share of annual CO2 emissions by country (1950–2023).
Our World in Data. Cumulative CO2 Emissions by World Region.
One of the bottlenecks in climate negotiations is the contrast between total and per capita emissions. Although China is by far the largest emitter, it is also the second most populous country, thus making its per capita emissions considerably lower than those of the US and Canada (Figure 7). This issue was especially contentious in climate change negotiations in the past, as China argued that it had the right to pollute so it could develop on par with high-income countries’ standards of living. However, this argument has become less important as China’s per capita emissions grew rapidly after the year 2000 and has far surpassed many European countries. This tension between total and per capita emissions is still relevant to other low- and middle-income countries with high total emissions and low per capita ones, especially India, which ranks third in global emissions but is far below the world average of per capita emissions given that it is the most populous country. Six small, oil-producing countries rank among the top per capita emitters (Qatar, Bahrain, Kuwait, Trinidad and Tobago, Brunei, United Arab Emirates), with per capita emissions above those in the US and Canada.
Figure 7 Per capita CO2 emissions by country (1950–2023).
Our World in Data. Cumulative CO2 Emissions by World Region.
- cumulative emissions
- The total greenhouse gas emissions produced over a specific time period, often used to assess historical responsibility for climate change.
Another bottleneck in climate negotiations is the fact that greenhouse gases are generally long-lived and accumulate over time, making cumulative emissions a more direct measure of a country’s responsibility for climate change than current annual emissions (Figure 8). From this perspective, the US and China are the two individual countries that dominate with 23.8% and 15.0% of total emissions in 2023 respectively, with the US’s share decreasing steadily and China’s share increasing steadily since 1950. (The EU-27 group of countries has the second-largest share globally, but this share has been steadily decreasing since 1950.) In 2023, Russia, Germany, and the UK follow behind with 6.7%, 5.2%, and 4.4% of cumulative emissions respectively, while India only accounts for 3.5%. In comparison, the entire group of lower-middle-income countries (using the World Bank’s country classifications) only represent 6.2% of total cumulative emissions (apart from India, these countries are not shown in Figure 8).
Figure 8 Share of global cumulative CO2 emissions (1950–2023).
Our World in Data. Cumulative CO2 Emissions by World Region.
To learn more about the Gini coefficient and how it is calculated, read Section 2.2 of The Economy 2.0: Macroeconomics.
- Gini coefficient
- A measure of inequality of a quantity such as income or wealth, varying from a value of zero (if there is no inequality) to one (if a single individual receives all of it). It is the average difference in, say, income between every pair of individuals in the population relative to the mean income, multiplied by one-half. Other than for small populations, a close approximation to the Gini coefficient can be calculated from a Lorenz curve diagram. See also: Lorenz curve.
For a short summary of the debate over who is responsible for causing and addressing climate change, watch this video by Kurzgesagt.
These distributions of emissions per country can be depicted using the Gini coefficient. The Gini ranges from 0 (perfect equality) to 1 (maximum inequality). Figure 9 shows that, over time, the Gini on current annual emissions shows a U-shaped pattern, with a fast-decreasing Gini from 0.87 in 1950 to 0.67 in 1991 but increasing thereafter to 0.73 in 2023. The Gini on cumulative emissions consistently decreases, starting at a higher value than the Gini for current emissions but eventually reaching similar values from 2010 onwards.
Figure 9 Gini of CO2 emissions per country (1950–2023).
Author’s own elaboration with data from Ritchie, Rosado, and Roser. 2023. Per Capita, National, Historical.
Note: ‘Weighted’ means that this measure accounts for the different population sizes of countries. (Larger countries have more ‘weight’, or influence, over the Gini coefficient.)
Question 3 Choose the correct answer(s)
Read the following statements about cumulative emissions and choose the correct option(s).
- Figure 8 shows that high-income countries (such as the US) have contributed more to cumulative emissions than low- and middle-income countries.
- Figure 9 shows that the Gini coefficient for cumulative emissions was initially high (close to 1, or maximum inequality) but has decreased to the same level as the Gini for current emissions since 2010.
- The US has the highest cumulative emissions, but China has the highest current emissions.
- The US has the highest cumulative emissions, but Figure 6 shows that China has surpassed the US in current emissions.
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Antonin Pottier. 2022. ‘Expenditure Elasticity and Income Elasticity of GHG Emissions: A Survey of Literature on Household Carbon Footprint’. Ecological Economics 192: 107251. ↩
