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Induced Innovation and Energy Prices

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  • David Popp

Abstract

I use U.S. patent data from 1970 to 1994 to estimate the effect of energy prices on energy-efficient innovations. Using patent citations to construct a measure of the usefulness of the existing base of scientific knowledge, I consider the effect of both demand-side factors, which spur innovative activity by increasing the value of new innovations, and supply-side factors, such as scientific advancements that make new innovations possible. I find that both energy prices and the quality of existing knowledge have strongly significant positive effects on innovation. Furthermore, I show that omitting the quality of knowledge adversely affects the estimation results.

Suggested Citation

  • David Popp, 2001. "Induced Innovation and Energy Prices," NBER Working Papers 8284, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:8284
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    3. repec:fth:harver:1473 is not listed on IDEAS
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    Citations

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    Cited by:

    1. David Popp, 2001. "Pollution Control Innovations and the Clean Air Act of 1990," NBER Working Papers 8593, National Bureau of Economic Research, Inc.
    2. Claudia S. Gómez-López & Luis A.Puch, 2008. "Macroeconomic Consequences of International Commodity Price Shocks," Working Papers 2008-27, FEDEA.
    3. Stavins, Robert & Jaffe, Adam & Newell, Richard, 2000. "Technological Change and the Environment," Working Paper Series rwp00-002, Harvard University, John F. Kennedy School of Government.
    4. Jingdong Zhong, 2019. "Biased Technical Change, Factor Substitution, and Carbon Emissions Efficiency in China," Sustainability, MDPI, vol. 11(4), pages 1-17, February.
    5. repec:hal:wpaper:hal-00860045 is not listed on IDEAS
    6. Ekaterina Ponomareva & Alexandra Bozhechkova & Alexandr Knobel, 2012. "Factors of Economic Growth," Published Papers 172, Gaidar Institute for Economic Policy, revised 2013.
    7. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2003. "Chapter 11 Technological change and the environment," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 11, pages 461-516, Elsevier.
    8. Ulrich Steger & Wouter Achterberg (†) & Kornelis Blok & Henning Bode & Walter Frenz & Corinna Gather & Gerd Hanekamp & Dieter Imboden & Matthias Jahnke & Michael Kost & Rudi Kurz & Hans G. Nutzinger &, 2005. "Sustainable Development and Innovation in the Energy Sector," Springer Books, Springer, number 978-3-540-26882-6 edited by Friederike Wütscher, February.
    9. van Zon, Adriaan & Yetkiner, I. Hakan, 2003. "An endogenous growth model with embodied energy-saving technical change," Resource and Energy Economics, Elsevier, vol. 25(1), pages 81-103, February.
    10. Yun, JinHyo Joseph & Won, DongKyu & Jeong, EuiSeob & Park, KyungBae & Yang, JeongHo & Park, JiYoung, 2016. "The relationship between technology, business model, and market in autonomous car and intelligent robot industries," Technological Forecasting and Social Change, Elsevier, vol. 103(C), pages 142-155.
    11. Claudia Ghisetti & Francesco Quatraro, 2013. "Beyond inducement in climate change: Does environmental performance spur environmental technologies?," Post-Print hal-00860045, HAL.

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    More about this item

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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