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Induced Innovation, Inventors, and the Energy Transition

Eugenie Dugoua & Todd Gerarden

American Economic Review: Insights2025https://doi.org/10.1257/aeri.20230522article
AJG 3ABDC A*
Weight
0.41

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. (JEL L94, O31, O34, Q35, Q42, Q55)

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https://doi.org/https://doi.org/10.1257/aeri.20230522

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@article{eugenie2025,
  title        = {{Induced Innovation, Inventors, and the Energy Transition}},
  author       = {Eugenie Dugoua & Todd Gerarden},
  journal      = {American Economic Review: Insights},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1257/aeri.20230522},
}

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Induced Innovation, Inventors, and the Energy Transition

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Evidence weight

0.41

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.25 × 0.4 = 0.10
M · momentum0.55 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.