Green Neighbors, Greener Neighborhoods

50 Pages Posted: 15 Apr 2024 Last revised: 30 May 2024

See all articles by Christine Zhuowei Huang

Christine Zhuowei Huang

University of Texas at Dallas - Naveen Jindal School of Management

Date Written: March 20, 2024


Utilizing nearest-neighbor research design, I show that households with green neighbors within 0.1 miles are 1.8 times more likely to certify their homes green within one year than those without. Consistent with information transmission mechanism, green neighbors increase the likelihood of multi-property owners certifying their secondary properties in faraway neighborhoods, and closer neighbors display higher certification and lender commonality. Furthermore, counties where green homes fetch higher prices, lower mortgage rate spreads, and regulatory incentives exhibit significantly stronger peer effects, whereas counties where green preferences are stronger do not, indicating that financial motives shape the peer effect in residential green certifications.

Keywords: Neighborhood Peer Effects in Residential Green Certifications, Residential Green Investments by Households, Causal Peer Effects Using Nearest-Neighbor Design

JEL Classification: D12, D14, G51, Q54, R23, R31

Suggested Citation

Huang, Christine Zhuowei, Green Neighbors, Greener Neighborhoods (March 20, 2024). Available at SSRN: or

Christine Zhuowei Huang (Contact Author)

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

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