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  • November 2014
  • Article
  • Journal of Environmental Economics and Management

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

By: Timothy Simcoe and Michael W. Toffel
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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 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 investments in green building expertise by local suppliers. These findings suggest that government procurement policies can accelerate the diffusion of new environmental standards, which require coordinated complementary investments by various types of private adopter.

Keywords

Public Procurement; Green Building; Quality Certification; Environmental Policy; Buildings and Facilities; Environmental Sustainability; Policy; Government and Politics; Green Technology Industry; Public Administration Industry; California

Citation

Simcoe, Timothy, and Michael W. Toffel. "Government Green Procurement Spillovers: Evidence from Municipal Building Policies in California." Journal of Environmental Economics and Management 68, no. 3 (November 2014): 411–434. (Lead article.)
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About The Author

Michael W. Toffel

Technology and Operations Management
→More Publications

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More from the Authors
  • Arla Foods: Data-Driven Decarbonization (A) By: Michael Parzen, Michael W. Toffel, Amram Migdal and Susan Pinckney
  • Vytal: Packaging-as-a-Service By: George Serafeim, Michael W. Toffel, Lena Duchene and Daniela Beyersdorfer
  • Managing Remote Work Quality: Evidence from Management Systems Standards Auditing By: Ashley Palmarozzo and Michael W. Toffel
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