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Cleaning up corruption and the climate: The role of green building certifications

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  • Devine, Avis
  • McCollum, Meagan
  • Orlova, Svetlana

Abstract

Adoption of green building certifications can help mitigate climate change in several ways. The most evident impact is introduction and implementation of higher environmental standards designed to reduce greenhouse gas emissions. We document a less obvious effect of green building certifications on corruption: an increase in certification adoption is associated with a decrease in corruption at the country level. This suggests that improvements in country-level control of corruption, particularly in the construction industry, may also be correlated with more efficient use of existing resources and attract climate-conscious investments, thus helping to reduce the gap in financing necessary to achieve carbon neutrality goals.

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  • Devine, Avis & McCollum, Meagan & Orlova, Svetlana, 2022. "Cleaning up corruption and the climate: The role of green building certifications," Finance Research Letters, Elsevier, vol. 47(PA).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612322001829
    DOI: 10.1016/j.frl.2022.102929
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    Cited by:

    1. Seyed Ashkan Zarghami, 2024. "The Labyrinth of Corruption in the Construction Industry: A System Dynamics Model Based on 40 Years of Research," Journal of Business Ethics, Springer, vol. 195(2), pages 335-352, November.
    2. Liu, Muyan & Shen, Lu & Yan, Yuehan, 2025. "Government-led green supply chain demonstration and corporate maturity mismatch: Evidence from China," Finance Research Letters, Elsevier, vol. 75(C).

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    Keywords

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    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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