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Do green policies achieve the carbon neutrality target? Revealing the effectiveness of environmental innovation

Author

Listed:
  • Xiang Xian
  • Jiang Wu
  • Mei Huang
  • Qiuping Mou

Abstract

In recent decades, the Environmental policy and environmental innovation are becoming the central policy instruments aimed at carbon neutrality. This empirical study scrutinizes the role of environmental policy and eco‐innovation on CO2 emissions for G7 countries. The study employs second‐generation panel data econometric methods along with panel quantile regression spanning from 1990 to 2019. The empirical findings infer that environmental policy and eco‐innovation significantly mitigate CO2 emissions in the long run. While, panel quantile regression also infers that environmental policy is negatively significant in all quantiles, but eco‐innovation is negatively significant from the 40th to 70th quantiles and insignificant in all other quantiles. The estimated results may further reinforce the policymakers in G7 countries on the promotion of green policy and eco‐innovation in carbon neutrality targets.

Suggested Citation

  • Xiang Xian & Jiang Wu & Mei Huang & Qiuping Mou, 2026. "Do green policies achieve the carbon neutrality target? Revealing the effectiveness of environmental innovation," Natural Resources Forum, Blackwell Publishing, vol. 50(1), pages 305-322, February.
    • Handle: RePEc:wly:natres:v:50:y:2026:i:1:p:305-322
    DOI: 10.1111/1477-8947.12572
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