Technology Innovation and Invention for Energy Efficiency

Now it is possible to move back in the process of technological change from diffusion to innovation. In the energy efficiency area, it is helpful to think of the innovation process as affecting improvements in the attributes or characteristics of products. This process is represented as the shifting inward over time of a curve representing the trade-offs between different product characteristics for the range of products available on the market. (more…)

The Process of Energy Efficiency Technology Change

Many readers may be unfamiliar with the way economists typically view the process of technological change, thus it is useful to first establish this common understanding. Furthermore, to understand the potential for public policy to affect energy efficiency, it is also necessary to understand the process through which technology evolves: invention, innovation, energy diffusion, and product use. (more…)

Energy Technology Adoption and Diffusion

energy technology adoption

Beginning at the end of the technological change process, research has consistently shown that diffusion of new, economically superior technologies is never instantaneous. A new technology is adopted at first gradually and then with increasing rapidity, until at some point its saturation in the economy is reached. The explanation for this typical path of diffusion that has most relevance for energy conservation investments is related to differences in the characteristics of adopters and potential adopters. This includes differences in the type and vintage of their existing equipment, other elements of the cost structure (such as access to and cost of labor, material, and energy), and their access to technical information. (more…)