American Economic Review: Vol. 101 No. 3 (May 2011)


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The Diffusion of Energy Efficiency in Building

Article Citation

Kok, Nils, Marquise McGraw, and John M. Quigley. 2011. "The Diffusion of Energy Efficiency in Building." American Economic Review, 101(3): 77-82.

DOI: 10.1257/aer.101.3.77


We analyze the diffusion of buildings certified for energy efficiency across US property markets. Using a panel of 48 metropolitan areas (MSAs) observed over the last 15 years, we model the geographic patterns and dynamics of building certification, relating industry composition, changes in economic conditions, characteristics of the local commercial property market, and the presence of human capital, to the cross-sectional variation in energy-efficient building technologies and the diffusion of those technologies over time. Understanding the determinants and the rate at which energy-efficient building practices diffuse is important for designing policies to affect resource consumption in the built environment.

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Kok, Nils (Maastricht U)
McGraw, Marquise (U CA, Berkeley)
Quigley, John M. (U CA, Berkeley)

JEL Classifications

O33: Technological Change: Choices and Consequences; Diffusion Processes
R33: Nonagricultural and Nonresidential Real Estate Markets

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