The effect of new technology on energy consumption

Research output: Contribution to journalArticle

114 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 1 2001

Keywords

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

ASJC Scopus subject areas

  • Economics and Econometrics

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