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 …

, droughts and flooding on the innovation of their respective mitigation technologies. Using patent and disaster data, our study … is the first to relate natural disasters to technology innovation, and also presents the first attempt to empirically …