Induced Innovation and Energy Prices

David Popp

No 8284, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: O31 Q40 (search for similar items in EconPapers)
Date: 2001-05
New Economics Papers: this item is included in nep-ene
Note: PR EEE
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Published as Popp, Daid. "Induced Innovation And Energy Prices," American Economic Review, 2002, v92(1,Mar), 160-180.

Downloads: (external link)
http://www.nber.org/papers/w8284.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:8284

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w8284

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().