technology, opportunity costs of research limit the role induced innovation can play. Moreover, since the backstop technology …

Despite growing empirical evidence of the link between environmental policy and innovation, most economic models of … innovation in the energy sector. Ignoring induced technological change overstates the welfare costs of an optimal carbon tax …, as the effect of induced innovation on emissions and mean global temperature is small. Sensitivity analysis shows that …

Although economists cite potential gains from induced innovation as an advantage of using market-based mechanisms to … control. I find that requiring plants constructed before 1990 to install scrubbers created incentives for innovation that …

Historically, innovation in the energy sector proceeded slowly and entrepreneurial start-up firms played a relatively …, integrating intermittent resources creates additional grid management challenges, requiring further innovation. This chapter … documents the evolving roles of innovation and entrepreneurship in the energy sector. First, we provide an overview of the …

literature on environmental innovation and diffusion, with a focus on studies relevant to the development of clean energy …

As an empirical example of this externality, we analyze the innovation induced by the obesity epidemic. Obesity is … associated with an increase in the incidence of many diseases. The induced innovation hypothesis is that an increase in the … incidence of a disease will increase technological innovation specific to that disease. The empirical economics literature has …

opportunities. The paper also provides new evidence on induced pharmaceutical innovation. In both cases we use the change in the … demographic structure of the market (measured by age structure and obesity prevalence) to test the induced innovation hypothesis … pharmaceutical innovation responds to aging- and obesity-induced changes in potential market size …