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http://ssrn.com/abstract=2142085
 
 

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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

May 14, 2014

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

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.

Number of Pages in PDF File: 51

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: May 15, 2014

Suggested Citation

Simcoe, Timothy and Toffel, Michael W., Government Green Procurement Spillovers: Evidence from Municipal Building Policies in California (May 14, 2014). 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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