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<p>This study examines the role of environmental policies, market regulation and judicial interpretation to achieve Pakistan’s carbon neutrality by utilizing time-series data from 1990–2022 and the autoregressive distributed lag (ARDL) approach. This study analyzes the effects of environmental taxes (ENT), judicial decisions (JUR), environmental legislation (ENL), and technological innovation (TIN) on carbon emissions (CO₂ per capita). The findings indicate that environmental taxes significantly reduce CO₂ emissions, where a 1% increase in environmental taxes leads to a 0.29% decline in emissions. Similarly, judicial decisions (β = -0.872, <i>p</i> &lt; 0.01), environmental legislation (β = -0.255, <i>p</i> &lt; 0.01), and technological innovation (β = -0.859, <i>p</i> &lt; 0.01) also reduce emissions in the long run. In the short run, the error correction term is negative and significant (ECT = -0.647, <i>p</i> &lt; 0.01), show adjustment toward equilibrium. Judicial decisions further act as a mediating factor between ecological legislation, market policies, and technological innovation, as shown by JUR × ENL (β = -0.214, <i>p</i> &lt; 0.05), JUR × ENT (β = -0.219, <i>p</i> &lt; 0.01), and JUR × TIN (β = -0.381, <i>p</i> &lt; 0.01). The robustness results further reveal an inverse connection of political stability and urbanization with CO₂ emissions, which assist the Ecological Kuznets Curve (EKC) hypothesis in Pakistan. The results emphasize the importance of judicial oversight and market policies to strengthen carbon reduction strategies. The study focuses on the need for an integrated policy framework that combines regulatory, legal, and technological measures to achieve carbon neutrality in developing economies. The empirical evidence also suggests that judicial activism can support the effective implementation of environmental policies for sustainable development.</p>

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Carbon neutrality through legislation, judicial oversight, and environmental policies in developing countries

  • 期刊论文

  • 发表日期：

    2026年6月30日

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  • Zulfiqar Hussain,
  • Meng Chen,
  • Xia Yunjiao,
  • Shah Abbas,
  • Aliza Tabassam

摘要

This study examines the role of environmental policies, market regulation and judicial interpretation to achieve Pakistan’s carbon neutrality by utilizing time-series data from 1990–2022 and the autoregressive distributed lag (ARDL) approach. This study analyzes the effects of environmental taxes (ENT), judicial decisions (JUR), environmental legislation (ENL), and technological innovation (TIN) on carbon emissions (CO₂ per capita). The findings indicate that environmental taxes significantly reduce CO₂ emissions, where a 1% increase in environmental taxes leads to a 0.29% decline in emissions. Similarly, judicial decisions (β = -0.872, p < 0.01), environmental legislation (β = -0.255, p < 0.01), and technological innovation (β = -0.859, p < 0.01) also reduce emissions in the long run. In the short run, the error correction term is negative and significant (ECT = -0.647, p < 0.01), show adjustment toward equilibrium. Judicial decisions further act as a mediating factor between ecological legislation, market policies, and technological innovation, as shown by JUR × ENL (β = -0.214, p < 0.05), JUR × ENT (β = -0.219, p < 0.01), and JUR × TIN (β = -0.381, p < 0.01). The robustness results further reveal an inverse connection of political stability and urbanization with CO₂ emissions, which assist the Ecological Kuznets Curve (EKC) hypothesis in Pakistan. The results emphasize the importance of judicial oversight and market policies to strengthen carbon reduction strategies. The study focuses on the need for an integrated policy framework that combines regulatory, legal, and technological measures to achieve carbon neutrality in developing economies. The empirical evidence also suggests that judicial activism can support the effective implementation of environmental policies for sustainable development.