Can strengthening environmental justice promote carbon reduction? Evidence from environmental courts in China

Environmental justice is an important safeguard for pollution control, and this paper is interested in its ability to promote carbon emission reduction. One unique facet of reinforcing local environmental justice involves the establishment of environmental courts by Intermediate People's Courts. Taking this as the starting point, this study constructs a quasi-natural experiment to investigate the strengthening of urban environmental justice. Analyzing empirical data from 283 prefecture-level cities in China spanning 2006 to 2019, we employ multi-period and spatial difference-in-differences approaches to probe the impact of environmental justice strengthening on carbon reduction. Our results indicate a substantial contribution of strengthened environmental justice to reducing carbon emissions. Specifically, the establishment of environmental courts can curtail carbon emissions by an estimated range of 11.7 to 12.9%. Also, the mechanism analysis underscores that the carbon reduction effect primarily arises from enhanced efficiency in processing environmental cases. Moreover, this effect is notably pronounced in regions with robust governmental environmental regulations. Notably, in areas with limited public environmental concern, environmental courts effectively complement existing environmental regulations. Furthermore, a significant positive spillover effect of environmental courts on carbon emission reduction is observed in geographically adjacent economic zones.