The wealthiest 10 percent of the global population are significantly accountable for the environmental degradation that is costing our planet trillions of dollars.

According to new research published in Communication Sustainability, this study aims to quantify the economic impact of environmental harm resulting from the affluent lifestyles and business practices of the world’s richest individuals.

The estimated environmental damage is staggering. The authors of the study found that the annual costs incurred by the richest 10 percent amount to approximately $1.7 to $5.7 trillion (£1.3 to £4.3 trillion), which translates to around $2,300 to $7,500 (£1,700 to £5,700) per person (in 2017 USD), outpacing the international funding gap for climate change and biodiversity.

To gauge the potential financial liability, the researchers utilized the Environmental Pricing Handbook to assess the economic costs associated with climate change, biosphere integrity, biogeochemical cycles, and freshwater use for the affluent 10 percent in 2017.

The study identified biodiversity loss and climate change as the primary contributors to this damage. Among the six countries reviewed, U.S. consumers incurred the highest environmental costs.

“A small fraction of the population is responsible for the majority of the damage, while they are also in control of the resources meant to address climate change and biodiversity loss,” explains Professor Lisa Schipper from the University of Oxford, who was not part of the study.

The authors suggest implementing an environmental tax to ensure that the wealthiest 10 percent compensate for their consumption, but Professor Schipper argues that the issue is more complex. “Some activities funded by the top 10 percent may provide employment, nourishment, or services to many in the remaining 90 percent, often in ways that compromise a sustainable and resilient future.”

Schipper points out that charging the largest contributors to environmental damage could alleviate the financial burden on the public sector, which currently bears the costs despite the private sector’s responsibility.

“In practice, however, this is challenging because the top 10 percent also wield significant power. For such an initiative to be viable, there must be a collective acknowledgment of responsibility.”

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