TY  - JOUR
AU  - Popp,David
TI  - Induced Innovation and Energy Prices
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8284
PY  - 2001
Y2  - May 2001
UR  - http://www.nber.org/papers/w8284
L1  - http://www.nber.org/papers/w8284.pdf
N1  - Author contact info:
David Popp
Associate Professor of Public Administration
Syracuse University
The Maxwell School
426 Eggers Hall
Syracuse, NY 13244-1020
Tel: 315/443-2482
Fax: 315/443-1081
E-Mail: dcpopp@maxwell.syr.edu
AB  - I use U.S. patent data from 1970 to 1994 to estimate the effect of energy prices on energy-efficient innovations. Using patent citations to construct a measure of the usefulness of the existing base of scientific knowledge, I consider the effect of both demand-side factors, which spur innovative activity by increasing the value of new innovations, and supply-side factors, such as scientific advancements that make new innovations possible. I find that both energy prices and the quality of existing knowledge have strongly significant positive effects on innovation. Furthermore, I show that omitting the quality of knowledge adversely affects the estimation results.
ER  -