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7 - Demonstrating Innovation in Green Buildings

Catalyzing Market Transformation

Published online by Cambridge University Press:  27 October 2022

Daniel C. Matisoff  and
Douglas S. Noonan
Daniel C. Matisoff
Affiliation:
Georgia Institute of Technology
Douglas S. Noonan
Affiliation:
Indiana University–Purdue University, Indianapolis
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Summary

This chapter develops a theory to explain how demonstration projects can help facilitate transformation in the marketplace. This theory is based primarily on a single economic concept: The costs of acquiring and utilizing new information. Understanding the role that pilot and demonstration projects can play in disseminating information is crucial to understanding the prospects for market transformation. These information flows occur both on the supply side and demand side of the (building) technologies market. This chapter details how information flows across supply networks and throughout markets can eventually shift standard operating practices, though these results are hardly guaranteed. We speculate that geographic networks and communities of practice are largely responsible for leveraging information spillovers, lowering costs, and facilitating dissemination of innovative technologies.

Keywords

demonstration projectspilot projectsinformation spilloversknowledge spilloverspeer effectsliving buildingecolabelsLEEDnetworks
Type
Chapter
Information
Ecolabels, Innovation, and Green Market Transformation
Learning to LEED
 , pp. 182 - 209
Publisher: Cambridge University Press
Print publication year: 2022

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References

Blackburn, Christopher, Flowers, Mallory, Matisoff, Daniel, and Moreno‐Cruz, Juan. 2020. “Do Pilot and Demonstration Projects Work? Evidence from a Green Building Program.” Journal of Policy Analysis and Management 39: 1100–1132.Google Scholar
Chegut, Andrea, Eichholtz, Piet, and Kok, Nils. 2019. “The Price of Innovation: An Analysis of the Marginal Cost of Green Buildings.” Journal of Environmental Economics and Management 98: 102248.Google Scholar
Kraft-Todd, Gordon T., Bollinger, Bryan, Gillingham, Kenneth, Lamp, Stefan, and Rand, David G.. 2018. “Credibility-Enhancing Displays Promote the Provision of Non-Normative Public Goods.” Nature 563, no. 7730: 245–248.CrossRefGoogle ScholarPubMed
Noonan, Douglas S., Hsieh, Lin-Han Chiang, and Matisoff, Daniel. 2015. “Economic, Sociological, and Neighbor Dimensions of Energy Efficiency Adoption Behaviors: Evidence from the U.S Residential Heating and Air Conditioning Market.” Energy Research & Social Science 10, Supplement C: 102–113.Google Scholar
Simcoe, Timothy S. and Toffel, Michael. 2014. “Government Green Procurement Spillovers: Evidence from Municipal Building Policies in California.” Harvard Business School Technology & Operations Mgt. Unit, Working Paper No. 13-030 (May).Google Scholar

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