Abstract

http://ssrn.com/abstract=2142085
 


 



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


Timothy Simcoe


Boston University - School of Management; NBER

Michael W. Toffel


Harvard Business School (HBS) - Technology & Operations Management Unit

September 10, 2013

Harvard Business School Technology & Operations Mgt. Unit Working Paper No. 13-030

Abstract:     
We investigate whether government green procurement policies stimulate private-sector demand for similar products and the supply of complementary inputs. 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 supplier investments in green building expertise. Our findings suggest that government procurement policies can accelerate the diffusion of new environmental standards that require coordinated complementary investments by various types of private adopters.

Number of Pages in PDF File: 47

Keywords: Public procurement, green building, quality certification, environmental policy.

JEL Classification: L15, Q58, Q55, O33.

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Date posted: September 5, 2012 ; Last revised: September 11, 2013

Suggested Citation

Simcoe, Timothy and Toffel, Michael W., Government Green Procurement Spillovers: Evidence from Municipal Building Policies in California (September 10, 2013). Harvard Business School Technology & Operations Mgt. Unit Working Paper No. 13-030. Available at SSRN: http://ssrn.com/abstract=2142085 or http://dx.doi.org/10.2139/ssrn.2142085

Contact Information

Timothy S. Simcoe
Boston University - School of Management ( email )
595 Commonwealth Avenue
Boston, MA MA 02215
United States
NBER ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Michael W. Toffel (Contact Author)
Harvard Business School (HBS) - Technology & Operations Management Unit ( email )
Boston, MA 02163
United States
617.384.8043 (Phone)
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