Considerable literature has been produced on this hypothesis, which is often presented in terms of the effects of wage increases as an encouragement to labor-saving innovation.
[1] In order to have a sustainable future it is imperative to modify global strategies on climate change and the induced innovation theory can aid to model these policies.
The decrease of "T" would indicate a gain in efficiency however “I” could still be growing or remaining stable if the improved technology is not sufficient to compensate the effect of an increase in "P" and "A".
[4] A fundamental issue of climate change is the excess of greenhouse gasses in the atmosphere particularly CO2 as the result of an intensified economic activity.
Being able to meet the demand of an exponentially growing population can be a challenging task, especially if we consider that one of the most important factors, land, remains fairly fixed.
[6] According to the World Bank data, less than 38% of the global surface area can be deemed usable for cultivation of crops or permanent pastures.
Scientists will now study the best solution to this problem and respond by making the appropriate technical development such that producers can efficiently substitute the abundant inputs for the increasingly scarce factors.