Public Procurement and the Private Supply of Green Buildings

43 Pages Posted: 15 Sep 2012 Last revised: 16 Oct 2014

See all articles by Timothy Simcoe

Timothy Simcoe

Boston University - Questrom School of Business; NBER

Michael W. Toffel

Harvard Business School

Multiple version iconThere are 2 versions of this paper

Date Written: September 2012

Abstract

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 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 adopter.

Suggested Citation

Simcoe, Timothy S. and Toffel, Michael W., Public Procurement and the Private Supply of Green Buildings (September 2012). NBER Working Paper No. w18385, Available at SSRN: https://ssrn.com/abstract=2147095

Timothy S. Simcoe (Contact Author)

Boston University - Questrom School of Business ( email )

595 Commonwealth Avenue
Boston, MA MA 02215
United States

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
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Michael W. Toffel

Harvard Business School ( email )

Boston, MA 02163
United States
617.384.8043 (Phone)

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