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Comparison of Voluntary Energy Sustainability Program versus Government Mandated Sustainability Code

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  • Abraham Park

Abstract

This study is a comparison of the impact of energy certification programs (Leadership in Energy and Environmental Design, called LEED) and government-mandated sustainability initiatives (CalGeen Code) on greenhouse gas (GHG) emissions. While LEED certification is voluntary and focuses on the sustainable design of energy efficiency, indoor environmental quality, and the use of sustainable materials in building developments, its actual effectiveness in reducing GHG emissions remains debated. In comparison, California’s mandatory CALGreen code, first adopted in 2007 and fully enforced by 2011, sets specific sustainability building code requirements for new constructions statewide. CALGreen aims to reduce GHG emissions and improve environmental quality through energy and water efficiency, among other measures. Unlike LEED, CALGreen is a regulatory mandate, with local jurisdictions responsible for code compliance. While LEED offers flexibility in meeting sustainability goals, it does not have any post-occupancy requirements. CALGreen’s requirements are more prescriptive. This study examines and reports the findings of the effects of these sustainability frameworks on GHG emissions within the context of building operations.

Suggested Citation

  • Abraham Park, 2025. "Comparison of Voluntary Energy Sustainability Program versus Government Mandated Sustainability Code," ERES eres2025_34, European Real Estate Society (ERES).
  • Handle: RePEc:arz:wpaper:eres2025_34
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    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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