| By: |
Andrea Bastianin (Department of Economics, Management, and Quantitative Methods, University of Milan and Fondazione Eni Enrico Mattei);
Paolo Castelnovo (Department of Economics, University of Insubria and Fondazione Eni Enrico Mattei);
Federico Fabio Frattini (Fondazione Eni Enrico Mattei);
Francesco Vona (Department of Environmental Science and Policy, University of Milan and Fondazione Eni Enrico Mattei) |
| Abstract: |
This paper develops a novel text-based approach to identify CRM-saving
innovation using patent data and studies how mineral price signals shape the
direction of technological change. Using patent data from 1978–2020, we
distinguish technologies that rely on CRMs from those that explicitly aim to
reduce their use through efficiency improvements, substitution, or recycling.
We provide evidence consistent with the induced-innovation hypothesis: higher
mineral prices reallocate inventive effort toward CRM-saving technologies,
while having little effect on CRM-reliant innovation. The response strengthens
over time and is especially pronounced for battery minerals and rare earth
elements. These findings are robust to alternative specifications and are
reinforced by complementary identification strategies, including a
falsification test and the use of plausibly exogenous supply-side price
variation. |
| Keywords: |
Energy Transition, Critical Raw materials, Patents |
| JEL: |
C55 O31 O33 Q55 L72 |
| Date: |
2026–01 |
| URL: |
https://d.repec.org/n?u=RePEc:fem:femwpa:2026.05 |