Allocation of green building policies in the United States

In 2014, buildings accounted for 41% of total US energy consumption, the largest among any sector. Because the majority of U.S. electricity is generated from fossil fuel-based sources, buildings are also responsible for the... [ view full abstract ]

In 2014, buildings accounted for 41% of total US energy consumption, the largest among any sector. Because the majority of U.S. electricity is generated from fossil fuel-based sources, buildings are also responsible for the largest share of carbon dioxide emissions. Concerns about climate change and air pollution have spurred a number of policies in the U.S. at the local, state, and federal level aimed at reducing energy use in buildings. We examine the effectiveness of these policies in encouraging commercial Leadership in Energy and Environmental Design (LEED) green building certifications in the U.S. Using a panel data approach with year and location fixed effects, we find that metropolitan areas which have enacted local policies experience greater increases in commercial LEED square footage per capita when compared to those that have not. Specifically, we note that the Energy Efficiency Conservation Block Grant (EECBG) disbursed under the American Recovery and Reinvestment Act (ARRA) in 2009 has a greater effect on commercial LEED square footage per capita which have local or state policies compared to those that do not. Therefore, a combination of local and federal policies is needed to effectively drive commercial green building construction in the U.S.