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Induced innovation, inventors and the energy transition

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  • Dugoua, Eugenie
  • Gerarden, Todd D.

Abstract

We study how individual inventors respond to incentives to work on 'clean' electricity technologies. Using natural gas price variation, we estimate output and entry elasticities of inventors and measure the medium-term impacts of a price increase mirroring the social cost of carbon. We find that the induced clean innovation response primarily comes from existing clean inventors. New inventors are less responsive on the margin than their average contribution to clean energy patenting would indicate. Our findings suggest a role for policy to increase the supply of clean inventors to help mitigate climate change.

Suggested Citation

  • Dugoua, Eugenie & Gerarden, Todd D., 2023. "Induced innovation, inventors and the energy transition," LSE Research Online Documents on Economics 121309, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:121309
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    File URL: http://eprints.lse.ac.uk/121309/
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    References listed on IDEAS

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    More about this item

    Keywords

    inventors; energy technology; induced innovation;
    All these keywords.

    JEL classification:

    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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