Incentivizing Green Single-Family Construction: Identifying Effective Government Policies and Their Features
Posted: 13 Apr 2016
Date Written: April 12, 2016
For more than a decade, governments have been incentivizing, and now requiring, private developers to construct energy efficient, sustainable projects. We examine the effectiveness of green single-family construction incentive programs. A cross-sectional comparison of municipalities with and without green private residential incentive programs indicates which government levels of policy issuance and which types of certification programs prove most successful, and when those impacts should be expected. Findings indicate that only municipalities experience success with construction-related policies, which may be tailored to their local market's construction demands. Business-related policies, however, prove effective at all levels of government implementation, with particular success at the state level. Lastly, event studies and multiyear window data indicates that green incentive policies elicit the greatest change two to three years after their implementation.
Keywords: Energy efficiency; Sustainability; Policy; Residential
JEL Classification: R11, R52, R58, E61
Suggested Citation: Suggested Citation