Climate change and the global distribution of wealth

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. Rising wealth inequality is a major challenge for this century, and climate change could further exacerbate it. Based on an overview of existing studies, this Perspective proposes a framework to advance understanding of wealth inequality in relation to climate change and climate policies.