Encyclopedia of Economic Law Journal

A Critical Analysis of the Legislative Discourse on Green Taxation in Iran, Focusing on the Requirements of the Aarhus Convention (From Fragmented Legislation to Participatory Regulation)

Document Type : Scientific research

Authors

Hadi Salehi 1
Mojtaba Vaezie 2
Tahereh Hazbeh 3

1 Assistant Professor, Public & International Law Department, Faculty of Law and Political Science, Shiraz University, Shiraz, Iran

2 Professor, Public & International Law Department, Faculty of Law and Political Science, Shiraz University, Shiraz, Iran

3 PhD Candidate in Public Law, Faculty of Law and Political Science, Shiraz University, Shiraz, Iran

https://doi.org/10.22067/economlaw.2026.97938.1523
Abstract
In contemporary societies, public decision-making has been shaped by new mechanisms and strategies. The environmental domain has not remained unaffected by this transformation and, through the emergence of green-oriented instruments and modern technologies, has entered a new stage of public governance. Within this context, green taxation—known as Pigouvian taxation aimed at internalizing negative externalities—goes beyond a mere fiscal instrument and serves as a redefinition of the relationship between the state and citizens in environmental protection. However, the effective realization of this policy is hardly possible without a transparent and equitable framework; otherwise, it may result in social discrimination, neglect of public rights, and a lack of accountability. The Aarhus Convention, as one of the most significant international instruments, provides a framework for transparency, accountability, and public participation in environmental governance, thereby enhancing citizens’ environmental rights and strengthening public oversight over environmental policymaking.
As a country heavily dependent on fossil fuels, Iran faces severe challenges such as air pollution, water scarcity, and climate change. Under such circumstances, the proper implementation of fiscal policies can serve as a tool to reduce inefficient energy consumption, mitigate pollution, and promote sustainable economic development. The aim of this study is to provide a legal analysis of the discursive and regulatory structures related to green taxation in Iran, with reference to the key principles of the Aarhus Convention, and to propose recommendations for strengthening the legal legitimacy of this instrument in the national legislative system. This involves a shift from the current model of “fragmented legislation and administrative enforcement” toward “participatory regulation” in green policymaking.
The key findings indicate that: (i) Iranian law lacks a unified definition of “green tax,” addressing it instead through fragmented instruments such as levies, penalties, and revenues—an ambiguity that prevents clear legal commitments to pollution reduction and earmarking revenues for environmental purposes. (ii) Green taxation in Iran significantly diverges from the Aarhus Convention’s standards of democratic and fair environmental governance: on the one hand, restrictions imposed under the label of “confidentiality” and weaknesses in data disclosure undermine the right of free access to environmental information; on the other hand, there is no formal and transparent mechanism for citizen or civil society (NGO) participation in legislative processes, contrary to the Aarhus emphasis on public involvement prior to adopting environmentally significant decisions. (iii) Whereas the Aarhus Convention guarantees access to justice for individuals and NGOs, in Iran the absence of clear standing for organizations or individuals to bring claims, and the lack of mechanisms to demand urgency in suspending environmentally harmful decisions, create insufficient legal effectiveness.
This descriptive-analytical study shows that although Iran possesses certain initial legal infrastructures, the absence of a clear legal status, institutional framework, and operational procedures prevents green taxation from aligning with the Aarhus Convention’s requirements. By implementing targeted legal reforms and strengthening mechanisms of participation and transparency, green taxation can be effectively and legitimately integrated into the country’s fiscal and environmental governance system

Keywords

Green Taxation
Regulation
Aarhus Convention
Legislative Discourse
Participatory Regulation
Subjects
 
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Encyclopedia of Economic Law Journal
Volume 33, Issue 29 - Serial Number 29
September 2026
Pages 155-181

  • Receive Date 05 May 2026
  • Revise Date 12 June 2026
  • Accept Date 26 August 2026

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