Green certification and eco-labels are new policy tools to help firms reduce their impact on the environment. This project focuses on the most prominent eco-label for built environments (buildings): Leadership in Energy & Environmental Design (LEED) certification, which is sponsored by the US Green Building Council (www.usgbc.org). It has four tiers or levels: Platinum, Gold, Silver and Certified – with Platinum being the most demanding in its environmental requirement (that is, most expensive to comply with but also the most prestigious), and Certified being the least demanding.
Given that these builders have opportunity to seek the least demanding LEED certification and yet enjoy the reputational gains of being “LEED certified,” it is puzzling to see that LEED Gold is the most popular tier within the LEED system. Therefore, the question we pose is: Why have most builders opted for LEED Gold certification although it is neither the least expensive option nor the most environmentally friendly of the four LEED certification levels?
To explore this question, we are conducting interviews with a nationwide sample of LEED certified building owners, property managers, property-affiliates, and/or company representatives regarding their choice of a specific LEED level. We are seeking qualitative feedback to assess the adoption strategy and cost-benefit analysis institutions partake when selecting LEED certification levels. The expected result is that LEED Gold’s proliferation is based on the nexus of financial incentives and green signaling. Achieving the highest return on investment, in the shortest time frame, while signaling a credible green commitment at the second highest level of LEED certification possible. We hope these interviews in aggregate will allow us to offer a more nuanced explanation for the popularity of LEED Gold among all LEED certification levels.