TY - JOUR
T1 - Innovation in climate policy models
T2 - Implementing lessons from the economics of R&D
AU - Popp, David
N1 - Funding Information:
At various stages of this research, Brant Brown, Yixin Dai, Neelakshi Medhi and Janna Matlack provided valuable research assistance. Financial support was provided by U.S. Department of Energy grants 593A3140217 and DE-FG02-02ER63467, and National Science Foundation grant SES-0001679.
PY - 2006/11
Y1 - 2006/11
N2 - Only recently have economists considered the effect of induced innovation in climate policy models. One reason is that, until recently, empirical evidence of the magnitude of such effects was unavailable. Drawing on my experiences with empirical studies on innovation and from modeling the climate change problem, in this paper, I present key lessons from the empirical literature on innovation and environmental policy, and discuss how much of the variation in results found in the modeling literature can be explained by differences in implementing (or failing to implement) these lessons into climate models. The paper concludes with a discussion of future research needs, focusing on a framework for improving the modeling of technology diffusion in climate change models.
AB - Only recently have economists considered the effect of induced innovation in climate policy models. One reason is that, until recently, empirical evidence of the magnitude of such effects was unavailable. Drawing on my experiences with empirical studies on innovation and from modeling the climate change problem, in this paper, I present key lessons from the empirical literature on innovation and environmental policy, and discuss how much of the variation in results found in the modeling literature can be explained by differences in implementing (or failing to implement) these lessons into climate models. The paper concludes with a discussion of future research needs, focusing on a framework for improving the modeling of technology diffusion in climate change models.
KW - Climate change
KW - Energy patents
KW - Induced innovation
KW - R&D
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U2 - 10.1016/j.eneco.2006.05.007
DO - 10.1016/j.eneco.2006.05.007
M3 - Article
AN - SCOPUS:33748894886
SN - 0140-9883
VL - 28
SP - 596
EP - 609
JO - Energy Economics
JF - Energy Economics
IS - 5-6
ER -