TY - JOUR
T1 - Induced innovation and energy prices
AU - Popp, David
PY - 2002/3
Y1 - 2002/3
N2 - 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.
AB - 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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U2 - 10.1257/000282802760015658
DO - 10.1257/000282802760015658
M3 - Article
AN - SCOPUS:0013089753
SN - 0002-8282
VL - 92
SP - 160
EP - 180
JO - American Economic Review
JF - American Economic Review
IS - 1
ER -