Mitigating Carbon Emissions: Market-Based vs Technology Support Policies

Various policy instruments are being used to reduce carbon emissions, which are the root cause of climate change. This study aims to empirically test the impact of market-based policies and technological support programs on carbon emissions and to reveal which policy is more effective in mitigation. For this purpose, the dataset of 19 OECD countries for the period 1994-2019 was used. The results of the study confirm that the policy coefficients vary across the values of the dependent variable. Accordingly, market-based policy stringency is effective in reducing emissions, and the effect increases at high carbon values. No significant effects were found for technology support programs. ams.