Cited by 212Energy, Environment, and Transportation PoliciesMarket Dynamics and VolatilityEnergy, Environment, Economic Growth

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Induced Innovation and Energy Prices

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Popp, David·2002·American Economic Review

DOI 10.1257/000282802760015658

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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.

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Authors: Popp, D.
Affiliations: National Bureau of Economic Research (US)
Corresponding author: Popp, David
ORCID: Popp, David
Venue: American Economic Review
Publisher: American Economic Association
Published: 2002-02-01
Volume: 92
Issue: 1
Pages: 160-180
ISSN: 0002-8282 (ISSN-L)
DOI: 10.1257/000282802760015658
OpenAlex: W2015597765
Cited by: 206
References: 36
Citations by year: 2026: 2 · 2025: 5 · 2024: 6 · 2023: 28 · 2022: 6 · 2021: 6 · 2020: 8 · 2019: 10 · 2018: 2 · 2017: 5 · 2016: 6 · 2015: 11 · 2014: 14 · 2013: 19 · 2012: 18
FWCI: 5.92
Type: journal article
Language: en
Open access: green
doi.org
Locations: American Economic Review (publishedVersion)
National Bureau of Economic Research (publishedVersion)
RePEc: Research Papers in Economics (submittedVersion)
SSRN Electronic Journal (submittedVersion)
Topics: Physical Sciences › Energy › Renewable Energy, Sustainability and the Environment › Energy, Environment, and Transportation Policies
Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Market Dynamics and Volatility
Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Energy, Environment, Economic Growth
Keywords: induced innovation, energy prices, energy innovation, energy efficiency

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Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.

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Induced Innovation and Energy Prices

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