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  • November 2014
  • Article
  • Journal of Environmental Economics and Management

Government Green Procurement Spillovers: Evidence from Municipal Building Policies in California

By: Timothy Simcoe and Michael W. Toffel
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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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About The Author

Michael W. Toffel

Technology and Operations Management
→More Publications

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    • March–April 2021
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    Manage the Suppliers That Could Harm Your Brand: Know When to Avoid, Engage, or Drop Them

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    Assessing Prediction Accuracy of Machine Learning Models

    By: Michael Toffel and Natalie Epstein
    • February 2021
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    T-tests: Theory and Practice

    By: Michael Parzen, Natalie Epstein, Chiara Farronato and Michael Toffel
More from the Authors
  • Manage the Suppliers That Could Harm Your Brand: Know When to Avoid, Engage, or Drop Them By: Jodi L Short and Michael W. Toffel
  • Assessing Prediction Accuracy of Machine Learning Models By: Michael Toffel and Natalie Epstein
  • T-tests: Theory and Practice By: Michael Parzen, Natalie Epstein, Chiara Farronato and Michael Toffel
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