Newell, Richard G, Adam B Jaffe, and Robert N Stavins. “
The Induced Innovation Hypothesis and Energy-Saving Technological Change.”
The Quarterly Journal of Economics 114 (1999): 941 –975.
Publisher's VersionAbstractWe develop a methodology for testing Hicks's induced innovation hypothesis by estimating a product-characteristics model of energy-using consumer durables, augmenting the hypothesis to allow for the influence of government regulations. For the products we explored, the evidence suggests that (i) the rate of overall innovation was independent of energy prices and regulations; (ii) the direction of innovation was responsive to energy price changes for some products but not for others; (iii) energy price changes induced changes in the subset of technically feasible models that were offered for sale; (iv) this responsiveness increased substantially during the period after energy-efficiency product labeling was required; and (v) nonetheless, a sizable portion of efficiency improvements were autonomous.
rff-dp-98-12-rev.pdf Newell, Richard G, Adam B Jaffe, and Robert N Stavins. “
The Induced Innovation Hypothesis and Energy-Saving Technological Change.”
The Quarterly Journal of Economics 114 (1999): 941 –975.
Publisher's VersionAbstractWe develop a methodology for testing Hicks's induced innovation hypothesis by estimating a product-characteristics model of energy-using consumer durables, augmenting the hypothesis to allow for the influence of government regulations. For the products we explored, the evidence suggests that (i) the rate of overall innovation was independent of energy prices and regulations; (ii) the direction of innovation was responsive to energy price changes for some products but not for others; (iii) energy price changes induced changes in the subset of technically feasible models that were offered for sale; (iv) this responsiveness increased substantially during the period after energy-efficiency product labeling was required; and (v) nonetheless, a sizable portion of efficiency improvements were autonomous.
Newell, Richard G, Adam B Jaffe, and Robert N Stavins. “
The Induced Innovation Hypothesis and Energy-Saving Technological Change.”
The Quarterly Journal of Economics 114 (1999): 941 –975.
Publisher's VersionAbstractWe develop a methodology for testing Hicks's induced innovation hypothesis by estimating a product-characteristics model of energy-using consumer durables, augmenting the hypothesis to allow for the influence of government regulations. For the products we explored, the evidence suggests that (i) the rate of overall innovation was independent of energy prices and regulations; (ii) the direction of innovation was responsive to energy price changes for some products but not for others; (iii) energy price changes induced changes in the subset of technically feasible models that were offered for sale; (iv) this responsiveness increased substantially during the period after energy-efficiency product labeling was required; and (v) nonetheless, a sizable portion of efficiency improvements were autonomous.
Keohane, Nathaniel, Robert N Stavins, and RL Revesz. “
The Positive Political Economy of Instrument Choice in Environmental Policy.” In
Environmental and Public Economics: Essays in Honor of Wallace E. Oates,
edited by Arvind Panagariya, Paul R Portney, and Robert M Schwab, 89–125. London: Edward Elgar, Ltd. 1999.
the_choice_of_regulatory1.pdf Keohane, Nathaniel, Robert N Stavins, and RL Revesz. “
The Positive Political Economy of Instrument Choice in Environmental Policy.” In
Environmental and Public Economics: Essays in Honor of Wallace E. Oates,
edited by Arvind Panagariya, Paul R Portney, and Robert M Schwab, 89–125. London: Edward Elgar, Ltd. 1999.
the_choice_of_regulatory1.pdf Keohane, Nathaniel, Robert N Stavins, and RL Revesz. “
The Positive Political Economy of Instrument Choice in Environmental Policy.” In
Environmental and Public Economics: Essays in Honor of Wallace E. Oates,
edited by Arvind Panagariya, Paul R Portney, and Robert M Schwab, 89–125. London: Edward Elgar, Ltd. 1999.
the_choice_of_regulatory1.pdf Keohane, Nathaniel, Robert N Stavins, and RL Revesz. “
The Positive Political Economy of Instrument Choice in Environmental Policy.” In
Environmental and Public Economics: Essays in Honor of Wallace E. Oates,
edited by Arvind Panagariya, Paul R Portney, and Robert M Schwab, 89–125. London: Edward Elgar, Ltd. 1999.
the_choice_of_regulatory1.pdf Keohane, Nathaniel, Robert N Stavins, and RL Revesz. “
The Positive Political Economy of Instrument Choice in Environmental Policy.” In
Environmental and Public Economics: Essays in Honor of Wallace E. Oates,
edited by Arvind Panagariya, Paul R Portney, and Robert M Schwab, 89–125. London: Edward Elgar, Ltd. 1999.
the_choice_of_regulatory1.pdf Keohane, Nathaniel, Robert N Stavins, and RL Revesz. “
The Positive Political Economy of Instrument Choice in Environmental Policy.” In
Environmental and Public Economics: Essays in Honor of Wallace E. Oates,
edited by Arvind Panagariya, Paul R Portney, and Robert M Schwab, 89–125. London: Edward Elgar, Ltd. 1999.
the_choice_of_regulatory1.pdf 
