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Induced innovation, inventors and the energy transition

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  • Eugenie Dugoua
  • Todd D. Gerarden

Abstract

We study how individual inventors respond to incentives to work on 'clean' electricity technologies. Using natural gas price variation, we estimate output and entry elasticities of inventors and measure the medium-term impacts of a price increase mirroring the social cost of carbon. We find that the induced clean innovation response primarily comes from existing clean inventors. New inventors are less responsive on the margin than their average contribution to clean energy patenting would indicate. Our findings suggest a role for policy to increase the supply of clean inventors to help mitigate climate change.

Suggested Citation

  • Eugenie Dugoua & Todd D. Gerarden, 2023. "Induced innovation, inventors and the energy transition," CEP Discussion Papers dp1951, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1951
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    1. Martijn A. Boermans & Maurice Bun & Yasmine van der Straten, 2024. "Funding the Fittest? Pricing of Climate Transition Risk in the Corporate Bond Market," Working Papers 797, DNB.

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    More about this item

    Keywords

    inventors; energy technology; induced innovation;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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