No. 1482 - The macroeconomic effects of a greener technology mix

by Fabrizio Ferriani, Andrea Gazzani and Filippo Natoli
March 2025
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The paper constructs a monthly indicator of green technology development, defined as the share of patents specifically aimed at mitigating the effects of climate change in the total number of patents registered by US firms between 1980 and 2019. The indicator is used to analyze the impact of technological innovation on carbon emissions and on macroeconomic conditions in the United States.

A shift toward green technologies acts as a negative supply shock in the short run, reducing economic activity and increasing inflation. This effect stems from the adoption of less mature technologies, which makes industrial production temporarily less efficient. In the medium term, a sustained decline in emissions intensity emerges, highlighting the role of green innovation in facilitating the transition to a lower-emission economy.

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  1. 13 March 2025
    No. 1482 - The macroeconomic effects of a greener technology mix
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