The Role of Environmental Taxation and Energy Justice in Mitigating Greenhouse Gas Emissions: Lessons From the Kyoto Protocol and the Paris Agreement

ABSTRACT The Kyoto Protocol and Paris Agreement have anchored global efforts to reduce greenhouse gas (GHG) emissions and achieve climate neutrality. Yet, despite growing momentum, these frameworks reveal a persistent challenge: advancing environmental goals without exacerbating social and economic disparities. As climate policy enters a critical phase, integrating equity into climate action, especially within the broader scope of the Sustainable Development Goals (SDGs), has become imperative. Against this backdrop, this study explores the roles of green taxation and energy justice in reducing GHG emissions, focusing on carbon dioxide (CO 2 ), methane (CH 4 ), and nitrous oxide (N 2 O). Using panel data from 38 OECD countries between 1990 and 2023, we employ robust econometric techniques including Generalized Method of Moments and Two‐Stage Least Squares (2SLS) to assess policy impacts. Our findings indicate that green taxes significantly reduce emissions, confirming their utility as fiscal tools for climate mitigation. Energy justice, defined as equitable access to clean, affordable energy, not only contributes directly to emission reductions but also amplifies the effectiveness of green taxation. This interaction reveals a powerful synergy, demonstrating that fiscal and justice‐based policies can work in tandem to support sustainable outcomes. We also observe substantial heterogeneity shaped by regional, institutional, and policy‐specific factors. These results underscore the need for context‐sensitive and integrated strategies that align environmental and social objectives. Ultimately, this research presents a dynamic policy framework that supports both climate neutrality and the SDG agenda, offering critical insights for designing equitable, high‐impact climate interventions.