Abstract
Pilot and demonstration (P&D) projects are commonly deployed to catalyze early adoption of technology but are poorly understood in terms of mechanism and impact. We conceptually distinguish unique functions of pilots and demonstrations, then examine whether they accelerate adoption in the case of green building technology. To identify effects on adoption, we develop a difference-in-difference-in-differences strategy, exploiting variation in timing, location, and technologies of green building P&Ds. Results indicate local quarterly green building adoption rates double following completion of a P&D project. Further analyses examine mechanisms driving this effect. The results suggest green building demonstration projects create learning externalities, proliferating technology diffusion in local markets and through building owner networks. Together, these results suggest that investments in P&D projects by public and private actors can lower costs for subsequent adoption.
| Original language | English |
|---|---|
| Pages (from-to) | 1100-1132 |
| Number of pages | 33 |
| Journal | Journal of Policy Analysis and Management |
| Volume | 39 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 12 May 2020 |
Bibliographical note
Funding Information:This paper has benefited from comments from several anonymous referees, participants at the 2017 APPAM Fall Research Conference, the Northeast Workshop on Energy Policy and Environmental Economics, the Business Economics and Public Policy Seminar at the Kelley School of Business, the Research Seminar at the University of Maryland, the Group for Research on Organizations and the Natural Environment, the Alliance for Research on Corporate Sustainability, and the 6th World Congress of Environmental and Resource Economists. Moreno-Cruz acknowledges financial support from the Canada Research Chairs program.
Publisher Copyright:
© 2020 by the Association for Public Policy Analysis and Management