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Energy Prices and Induced Technological Progress

  • Surender Kumar
  • Shunsuke Managi
Chapter
Part of the Natural Resource Management and Policy book series (NRMP, volume 32)

Abstract

Technological progress plays a crucial ameliorating role in reducing energy consumption for combating climate change. Energy economists often cite market-based instruments such as energy taxes for encouraging energy-saving technological progress. Energy policy interventions may change the constraints and incentives that affect technological change (TC). For instance, changes in current relative energy prices may induce substitution of energy by other factors of production, and changes in its long-run prices may induce development of new energy-saving technologies. The importance of relative prices as a stimulator of technological advancement is traceable to Hicks (1932). The theory of induced innovation helps in measuring the impact of relative prices on the direction of technological change (Hayami and Ruttan, 1971).

Keywords

Technological Change Energy Price Technical Inefficiency Technological Diffusion International Energy Agency 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.TERI UniversityIHC ComplexIndia
  2. 2.Yokohama National UniversityYokohamaJapan

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