The out-of-universe answer is the Dredd universe is a satire of an overpopulated, over-urbanized police state and not intended to make scientific sense.
That said, just how long could billions of people keep breathing if the Earth's oxygen cycle broke down? A long time. The Earth's atmosphere is really, really, really, really big compared to puny humans (though not their machines).
A single human uses about 550 liters of pure oxygen per day. Not air, oxygen. At an atmospheric density of about 1.2 g/L that's about 660 g or 0.66 kg per person per day or 240 kg per person per year.
The atmosphere of the Earth weighs about 5.15e18 kg. 3/4 of that is within 11km of the surface, so let's use that: 3.86e18 kg. How much of that is oxygen? Oxygen is about 21% by volume with the rest being nitrogen and 1% miscellaneous that I'll ignore. But we want the percentage of oxygen by mass.
We can use the density of those gases to work out their mass ratios in air. 1.331 g/L for O22 and 1.205 g/L for air at normal temperature and pressure.
1 liter of air weighs 1.205 g. 21% of the volume is oxygen, so it contributes 0.21 * 1.331 g/L = 0.28g
. Divide them to get the mass-ratio of oxygen: 0.28g / 1.205g = 23%
.
23% of 3.86e18 kg is 8.9e17 kg. That's a decent approximation of how much oxygen is in the atmosphere. Humans can survive as low as 17% oxygen, 6.6e17 kg, so they can safely consume 2.3e17 kg.
How long will it last?
2.3e17 kg / 240 kg per person per year = 9.6e14 person-years
Lacking a census for the Judge Dredd universe, I'll use 10 billion people or 1e10. TheyThey will have 9.6e4 or 96,000 years of breathing what's left in the atmosphere before there is a problem.
The bigger problem will be the build up of carbon dioxide in the atmosphere, we're far more sensitive to too much CO22 then to too little O22. I'll leave that for someone else to work out.