Government green procurement spillovers: Evidence from municipal building policies in California

Timothy Simcoe and Michael Toffel

Journal of Environmental Economics and Management, 2014, vol. 68, issue 3, 411-434

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 US 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 that require coordinated complementary investments by various types of private adopter.

Keywords: Public procurement; Green building; Quality certification; Environmental policy (search for similar items in EconPapers)
JEL-codes: L15 O33 Q55 Q58 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (43)

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Working Paper: Government Green Procurement Spillovers: Evidence from Municipal Building Policies in California (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:68:y:2014:i:3:p:411-434

DOI: 10.1016/j.jeem.2014.09.001

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Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates

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