Induced innovation, inventors, and the energy transition

Dugoua, Eugenie ORCID: 0000-0002-4176-8740 and Gerarden, Todd D. (2024) Induced innovation, inventors, and the energy transition. American Economic Review: Insights. ISSN 2640-205X (In Press)

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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 results strengthen the rationale for government intervention to expedite the energy transition.

Item Type:	Article
Additional Information:	© 2024 American Economic Association
Divisions:	Geography & Environment
Subjects:	H Social Sciences > HB Economic Theory T Technology T Technology > TD Environmental technology. Sanitary engineering
JEL classification:	O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O31 - Innovation and Invention: Processes and Incentives Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q55 - Technological Innovation Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q40 - General
Date Deposited:	05 Aug 2024 09:30
Last Modified:	19 Dec 2024 15:24
URI:	http://eprints.lse.ac.uk/id/eprint/124461

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