The effect of new technology on energy consumption

David C. Popp

doi:10.1016/S0928-7655(00)00045-2

The effect of new technology on energy consumption

David C. Popp

Department of Public Administration

Research output: Contribution to journal › Article › peer-review

166 Scopus citations

Abstract

This paper uses patent data to estimate the effect of new technologies on energy consumption. Matching energy patent counts to the industries using these patents, I create stocks of energy knowledge for 13 industries. Including the stocks in restricted variable cost functions, I estimate the median present value of long run savings from a new patent to be over US$ 14.5 million. Combining these results with estimates of price-induced innovation, I conclude that two-thirds of the change in energy consumption with respect to a price change is due to simple price-induced factor substitution, while the remaining third results from induced innovation.

Original language	English (US)
Pages (from-to)	215-239
Number of pages	25
Journal	Resource and Energy Economics
Volume	23
Issue number	3
DOIs	https://doi.org/10.1016/S0928-7655(00)00045-2
State	Published - Jul 2001

Keywords

Energy
Induced innovation
Patents
Technology
Yale technology concordance(YTC)

ASJC Scopus subject areas

Economics and Econometrics

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10.1016/S0928-7655(00)00045-2

Cite this

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title = "The effect of new technology on energy consumption",

abstract = "This paper uses patent data to estimate the effect of new technologies on energy consumption. Matching energy patent counts to the industries using these patents, I create stocks of energy knowledge for 13 industries. Including the stocks in restricted variable cost functions, I estimate the median present value of long run savings from a new patent to be over US$ 14.5 million. Combining these results with estimates of price-induced innovation, I conclude that two-thirds of the change in energy consumption with respect to a price change is due to simple price-induced factor substitution, while the remaining third results from induced innovation.",

keywords = "Energy, Induced innovation, Patents, Technology, Yale technology concordance(YTC)",

author = "Popp, {David C.}",

note = "Funding Information: The author would like to thank William Nordhaus, Robert Evenson, Joel Waldfogel, Ariel Pakes, Deitrich Earnhart and three anonymous referees for useful comments. In addition, the help of Samuel Kortum, Jonathan Putnam, and Robert Evenson in obtaining patent data is gratefully acknowledged. Despite the worthy assistance of these individuals, all mistakes are solely the responsibility of the author. Partial funding for this paper was provided by US Department of Energy Grant no. 593A3140217. ",

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N1 - Funding Information: The author would like to thank William Nordhaus, Robert Evenson, Joel Waldfogel, Ariel Pakes, Deitrich Earnhart and three anonymous referees for useful comments. In addition, the help of Samuel Kortum, Jonathan Putnam, and Robert Evenson in obtaining patent data is gratefully acknowledged. Despite the worthy assistance of these individuals, all mistakes are solely the responsibility of the author. Partial funding for this paper was provided by US Department of Energy Grant no. 593A3140217.

PY - 2001/7

Y1 - 2001/7

N2 - This paper uses patent data to estimate the effect of new technologies on energy consumption. Matching energy patent counts to the industries using these patents, I create stocks of energy knowledge for 13 industries. Including the stocks in restricted variable cost functions, I estimate the median present value of long run savings from a new patent to be over US$ 14.5 million. Combining these results with estimates of price-induced innovation, I conclude that two-thirds of the change in energy consumption with respect to a price change is due to simple price-induced factor substitution, while the remaining third results from induced innovation.

AB - This paper uses patent data to estimate the effect of new technologies on energy consumption. Matching energy patent counts to the industries using these patents, I create stocks of energy knowledge for 13 industries. Including the stocks in restricted variable cost functions, I estimate the median present value of long run savings from a new patent to be over US$ 14.5 million. Combining these results with estimates of price-induced innovation, I conclude that two-thirds of the change in energy consumption with respect to a price change is due to simple price-induced factor substitution, while the remaining third results from induced innovation.

KW - Energy

KW - Induced innovation

KW - Patents

KW - Technology

KW - Yale technology concordance(YTC)

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JO - Resource and Energy Economics

JF - Resource and Energy Economics

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The effect of new technology on energy consumption

Abstract

Keywords

ASJC Scopus subject areas

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