Bridging innovation and Adoption: The asymmetric impact of E-mobility technology budgets on electric vehicle growth

E-mobility technology budgets are pivotal in advancing electric vehicle adoption by supporting innovation and infrastructure. Higher investments in this sector drive and expedite the global transition to sustainable transportation solutions. The present investigation examines the asymmetric impact of e-mobility technology budgets on electric vehicle stock in ten selected economies having the highest e-mobility R&D expenditures, including China, the United States, France, Japan, Germany, the UK, South Korea, Sweden, the Netherlands, and Norway. Unlike prior investigations that predominantly applied panel data methods and frequently ignored the distinct economic contexts of specific economies, this investigation adopts the refined Quantile-on-Quantile instrument. This methodology allows for examining variables’ changes within every economy individually, augmenting accuracy and providing a more insightful understanding of distinct traits of each economy. The results disclose a significant positive relationship between e-mobility technology budgets and electric vehicle stock in most analyzed countries, demonstrating particular patterns and dynamics. However, the relationship is more complex in Sweden and Norway, showing mixed results. These results draw attention to the significant requirement for policymakers to conduct in-depth evaluations and formulate tailored strategies to address the complicated relationship between e-mobility technology budgets and electric vehicle adoption, aligning with sustainable development goals.