This paper reviews the literature on the impact of environmental degradation on poverty. Each aspect of environmental degradation, including climate change, air pollution, water, and soil pollution, and the reduction of water resources has a negative impact on health (including mortality and illnesses of infants and adults), cognitive performance of individuals (including labor productivity and student education), physical and natural capital (soil quality, water, and machinery), and social and institutional capital (the extent of conflict and migration) lead to poverty. Increased respiratory and cardiovascular disease, mortality, birth defects, increased abortions, and increased preterm births, firstly, impose high costs on households, and secondly, as a barrier to work, activity, employment and education, income and wage drops and this will increase the poverty rate in the community. The decline in mental performance in individuals reduces the level of education and human capital, as well as the reduction of labor productivity and, as a result, reduces wages, income, and production of individuals. Reducing physical and natural capital, such as reducing the quality of soil and water, and increasing the depreciation of machinery, reduces productivity, wages and salaries. Environmental degradation generally has a greater impact on the poor than others because, firstly, they have less ability to deal with the negative consequences because of lack of income and wealth. Second, their dependence on natural resources as a source of income (agriculture and livestock) as well as nutrition and clothing is more than others. Third, urban poor people live more often in more polluted areas than other urban populations.