Technological Innovation and a Changing Energy Mix - A Parametric and Flexible Approach to Modeling Ontario Manufacturing

Mountain, Dean C.; Stipdonk, Bill P.; Warren, Cathy J.

doi:10.5547/issn0195-6574-ej-vol10-no4-9

Cited by 24 publications

(7 citation statements)

References 19 publications

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“…They find that technological change leads to savings in both fuels and electricity. In a similar study, Mountain, Stipdonk, and Warren (1989) find that technological change in Ontario manufacturing industries is oil-saving and natural gas-using. Results for electricity use depended on the industry.…”

Section: A Studies Of Energy Consumption Across Timementioning

confidence: 88%

The effect of new technology on energy consumption

Popp

2001

Resource and Energy Economics

218

110

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This paper uses patent data to estimate the effect of new technologies on energy consumption. A stock of energy knowledge is created for each of 13 energy-intensive industries. The median present value of long run savings from a new patent is nearly 9 million dollars. The results are used to simulate the effect of a ten-percent energy tax. Although factor substitution is found to play a greater role than induced innovation in the short run, the energy savings from induced innovation play a much larger role than factor substitution in the long run, due to the cumulative nature of research.

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Section: A Studies Of Energy Consumption Across Timementioning

confidence: 88%

The effect of new technology on energy consumption

Popp

2001

Resource and Energy Economics

218

110

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“…69 Mountain et al (1989) attempted to assess the effects of relative prices on relevant technology diffusion in the Ontario manufacturing sector from 1962 to 1984. They found that fuel choices changed in response to changes in fuel prices, but given the nature of their analysis, they could not distinguish between product substitution and technology diffusion.…”

Section: Empirical Analysesmentioning

confidence: 99%

Technological change and the Environment

Jaffe¹,

Newell²,

Stavins³

2003

Handbook of Environmental Economics

394

259

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Environmental policy discussions increasingly focus on issues related to technological change. This is partly because the environmental consequences of social activity are frequently affected by the rate and direction of technological change, and partly because environmental policy interventions can themselves create constraints and incentives that have significant effects on the path of technological progress. This paper, prepared as a chapter draft for the forthcoming Handbook of Environmental Economics (North-Holland/Elsevier Science), summarizes current thinking on technological change in the broader economics literature, surveys the growing economic literature on the interaction between technology and the environment, and explores the normative implications of these analyses. We begin with a brief overview of the economics of technological change, and then examine theory and empirical evidence on invention, innovation, and diffusion and the related literature on the effects of environmental policy on the creation of new, environmentally friendly technology. We conclude with suggestions for further research on technological change and the environment.

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“…Very recently, Popp et al (2009) prepared an excellent review scrutinizing the role of technological change on environmental economics for the forthcoming Handbook of Economics of Technical Change. In this review, some significant works cited in conjunction with the relationships among innovation (technological change), EE, and ES are Mountain et al (1989), Sterner (1990), Berndt et al (1993), Newell et al (1999, Popp (2001), Nijkamp et al (2001), Popp (2002), Mulder et al (2003, Anderson and Newell (2004), Linn (2008), and Sue Wing (2008. Some of the conclusions of these works are i) the technology is energy saving; ii) energy patents leads to long-run energy savings; iii) science and technology (S&T) takeoff should have an energy-saving bias resulting in lower energy prices, however, this leads to more economic growth and greater energy consumption by households, so that the net effect of the S&T takeoff is greater energy use and more emissions; iv) increase in the price of energy leads to technology adoption that negligibly reduces energy demand; v) energy prices and regulatory standards affect EE-related innovation; and vi) economic barriers affect adoption of EE technology more than financial and uncertainty barriers.…”

Section: /21mentioning

confidence: 99%

Analysis of Innovation and Energy Profiles in the Turkish Manufacturing Sector

2009

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We present Turkey's manufacturing-sector innovation data and, for the first time, analyze likely relationships among GDP growth, sectoral innovation intensities, energy consumptions, and energy-saving potentials. We detect a power-law-like relationship between the projected energy-saving potentials and realized energy consumptions of the manufacturing-sector groups. We observe that the energy consumptions of the sectors do not change significantly despite varying innovation levels during transitions from economic crisis and recovery periods. We conclude that the Turkey's manufacturing sectors' energy consumptions are insensitive to their innovation levels, or their innovation activities are not energy-efficiency-and energy-saving-oriented, reflecting Turkey's past supply-oriented energy policy. The leader innovating sectors are, nevertheless, expected to contribute more to Turkey's energy-saving and energyefficiency policies if their innovation potentials can be directed to achieve higher energy savings and energy efficiencies via government incentives within the agenda of the recent energy-efficiency and R&D laws. Keywords:Manufacturing sector; Innovation; Energy consumption; Energy saving potential; Energy efficiency; R&D; GDP; Turkey 2/21Analysis of Innovation and Energy Profiles in the Turkish Manufacturing Sector -Akman* -July 2009 MotivationLiterature reveals that energy-saving (ES), energy-efficiency (EE) and greenhouse-gas emissions may be related to innovation and R&D activity levels. Turkey's manufacturing technology is not very energy-efficient and current R&D and innovation activities are not very much concerned with ES and EE, reflecting Turkey's past supply-oriented energy policy. However, recent laws on EE and R&D aim to revert this policy towards ES and EE. Turkey's law about the support of R&D activities (RDL in short) supports generation of technological know-how to make the economy internationally competitive through R&D and innovation. RDL exploits innovations in developing technology-intensive products and production processes, improving efficiency and costs, and commercializing technological know-how.We expect that, in the medium to long run, supports and incentives of RDL will espouse implementation of Turkey's ES, EE, and emission-reduction policies. In support of our such views, we present Turkey's manufacturing-sector innovation data and analyze the relationships among sectoral innovations, energy consumptions, and ES potentials. Consequently, we infer the sectors that are expected to contribute more to Turkey's energy/emission policies, and identify the sectors to be supported and closely-monitored by the government. Turkish government must support and develop a shared vision of energy-related R&D and innovation among industry, universities, government-based R&D centers, and budding energy-service-company (ESCO) market.Due to poor data-collection practice in Turkey in the past, the data sets we used, in particular the ES-potential data, are not very adequate. However, the resul...

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Technological Innovation and a Changing Energy Mix - A Parametric and Flexible Approach to Modeling Ontario Manufacturing

Cited by 24 publications

References 19 publications

The effect of new technology on energy consumption

The effect of new technology on energy consumption

Technological change and the Environment

Analysis of Innovation and Energy Profiles in the Turkish Manufacturing Sector

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