Evaluating the Role of Equitable Carbon Financing and Green Trade Policies in Enhancing Climate Justice: A Cross‑Country Empirical Study

Climate change, environment

This study investigates the empirical impact of equitable carbon financing and green trade policies on climate justice outcomes across countries. The objectives are to evaluate how climate finance flows affect emissions and social equity, measure the role of green trade policies in promoting sustainable practices, construct a composite climate justice index, and provide actionable policy recommendations. The study utilizes data from UN Comtrade (green product classification), World Bank Climate Policy Initiative (CPI), OECD DAC, CDIAC, EDGAR, UNDP, and the World Inequality Database. Analytical methods include constructing a composite index for climate justice, panel regression with instrumental variables to assess causal effects, moderation analysis to evaluate the influence of trade diversification and governance quality, and robustness checks using fixed effects and heterogeneous effect models. By integrating these methodologies, the research addresses gaps in empirical evaluation of climate justice, offering a comprehensive quantitative framework. Expected contributions include providing evidence-based insights into the effectiveness of carbon finance and trade policies, generating a replicable climate justice index for cross-country comparisons, and delivering policy guidance to enhance equitable and sustainable climate action, particularly in the Global South. This study bridges theoretical discourse and practical policy evaluation, supporting informed decision-making for international climate governance.

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