Publications
Publications
- November 2014
- Journal of Environmental Economics and Management
Government Green Procurement Spillovers: Evidence from Municipal Building Policies in California
By: Timothy Simcoe and Michael W. Toffel
Abstract
We study how government green procurement policies influence private-sector demand for similar products. Specifically, we measure the impact of municipal policies requiring governments to construct green buildings on private-sector adoption of the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) standard. Using matching methods, panel data, and instrumental variables, we find that government procurement rules produce spillover effects that stimulate both private-sector adoption of the LEED standard and investments in green building expertise by local suppliers. These findings suggest that government procurement policies can accelerate the diffusion of new environmental standards, which require coordinated complementary investments by various types of private adopter.
Keywords
Public Procurement; Green Building; Quality Certification; Environmental Policy; Buildings and Facilities; Environmental Sustainability; Policy; Government and Politics; Green Technology Industry; Public Administration Industry; California
Citation
Simcoe, Timothy, and Michael W. Toffel. "Government Green Procurement Spillovers: Evidence from Municipal Building Policies in California." Journal of Environmental Economics and Management 68, no. 3 (November 2014): 411–434. (Lead article.)
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