Induced Innovation, Inventors, and the Energy Transition

A-Tier
Journal: American Economic Review: Insights
Year: 2025
Volume: 7
Issue: 1
Pages: 90-106

Authors (2)

Eugenie Dugoua (not in RePEc) Todd D. Gerarden (Cornell University)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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 results strengthen the rationale for government intervention to expedite the energy transition.

Technical Details

RePEc Handle
repec:aea:aerins:v:7:y:2025:i:1:p:90-106
Journal Field
General
Author Count
2
Added to Database
2026-01-25