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

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.