Wealth Inequality and Planetary Boundaries in a Stylized Agent-Based Model
Why rich countries stay trapped burning fossil fuels despite knowing better
A computer simulation of economic decisions reveals a vicious cycle: wealthy people and nations feel insulated from climate disasters, so they invest less in clean energy, which slows the transition away from fossil fuels even when most people care about the environment. The model shows this trap persists in wealth-inequality levels matching today's developed countries—and that carbon taxes or green subsidies only work if they're paired with policies that reduce inequality itself.
Policymakers trying to accelerate the shift to renewable energy often assume the main barriers are technological or financial. This research suggests inequality itself is the lock. It implies that climate plans which ignore wealth distribution—taxing the rich heavily without redistributing gains—will fail or move glacially. Countries may need to combine green investment with income redistribution, not choose between them.