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The Induced Innovation Hypothesis and Energy-Saving Technological Change
Abstract
We develop a methodology for testing Hicks's induced innovation hypothesis by estimating a product-characteristics model of energy-using consumer durables, augmenting the hypothesis to allow for the influence of government regulations. For the products we explored, the evidence suggests that (i) the rate of overall innovation was independent of energy prices and regulations; (ii) the direction of innovation was responsive to energy price changes for some products but not for others; (iii) energy price changes induced changes in the subset of technically feasible models that were offered for sale; (iv) this responsiveness increased substantially during the period after energy-efficiency product labeling was required; and (v) nonetheless, a sizable portion of efficiency improvements were autonomous.
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Cited by
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Environmental and technology policies for climate mitigation
Fischer, C., & Newell, R. G. (2008) · Journal of Environmental Economics and Management · doi:10.1016/j.jeem.2007.11.001 · Cited by 1,157
Self-citationEnvironmental Policy and Directed Technological Change: Evidence from the European Carbon Market
Calel, R., & Dechezleprêtre, A. (2016) · Review of Economics and Statistics · doi:10.1162/rest_a_00470 · Cited by 1,147
Technological progress and sustainable development: what about the rebound effect?
Binswanger, M. (2001) · Ecological Economics · doi:10.1016/s0921-8009(00)00214-7 · Cited by 737
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Metadata
- Authors
- Newell, R. G., Jaffe, A. B., & Stavins, R. N.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 1999-08-01
- Volume
- 114
- Issue
- 3
- Pages
- 941-975
- ISSN
- 0033-5533 (ISSN-L)
- 1531-4650
- OpenAlex
- W2892282411
- Cited by
- 752
- References
- 0
- FWCI
- 15.30
- Type
- journal article
- Language
- en
- Open access
- closed
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- Newell, R. G., Jaffe, A. B., & Stavins, R. N. (1999). The Induced Innovation Hypothesis and Energy-Saving Technological Change. The Quarterly Journal of Economics. https://doi.org/10.1162/003355399556188
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
