Market-based and non-market-based policies: A quantile approach to environmental technology innovation in G-7 countries

Numerous sanctions and incentives are used in different countries to encourage businesses to implement environmental technology. Market-based environmental policies are used in certain nations, whereas non-marketbased environmental policies are used in others. However, these rules' ability to effectively guide businesses toward research and development is disregarded. In light of this, the purpose of this research is to examine how market-based environmental policies and non-market-based environmental policies affect environmental technology for G-7 nations at various technological progress levels. For this, unique quantile-on-quantile methods are used to study the years between 1990 and 2020. The results of the empirical analysis show that non-marketbased policies is effective in all quantiles for the USA, while market-based policies is successful in all quantiles for Canada and France. Furthermore, differing environmental technology levels for Germany, the UK, Italy, and Japan result in different sorts of successful policies.