Mapping the Influence of European Environmental Policies Toward Climate Neutrality Progress: A Quantile Analysis of Green Technologies and Policy Effectiveness

The diverse performance asymmetries and policy efforts toward climate neutrality among EU member states remain underexplored. Addressing this gap, we develop a conceptual framework to analyze the influence of green policy effectiveness and green technologies across tiers of emissions’ productivity in the EU-28 during 2010 to 2019, a pivotal period for climate neutrality efforts. Results from an instrumental panel quantile estimator reveal that national climate policies have an asymmetric impact toward climate neutrality progress, particularly benefiting low-performing countries. Green fiscal policy, such as energy taxes, is not a precondition for climate neutrality. We highlight the unexplored role of environmental policy performance, finding that effective policy auditing fostering progress. Eco-innovation and clean energy influence progress across tiers, underscoring the need for targeted incentives. Green technology development proves to be a key contributor toward climate neutrality progress, across tiers. This study advances understanding of the SDGs 7, 8, 9, 12, 13, and 16.