The effect of new technology on energy consumption

Research output: Contribution to journalArticlepeer-review

127 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 languageEnglish (US)
Pages (from-to)215-239
Number of pages25
JournalResource and Energy Economics
Volume23
Issue number3
DOIs
StatePublished - Jul 2001

Keywords

  • Energy
  • Induced innovation
  • Patents
  • Technology
  • Yale technology concordance(YTC)

ASJC Scopus subject areas

  • Economics and Econometrics

Fingerprint

Dive into the research topics of 'The effect of new technology on energy consumption'. Together they form a unique fingerprint.

Cite this