Research Design Connection: Value of Green Certification
How much is green certification worth? Chopra and Wu studied companies in the computer and electronics industry: “They paired each company [in their study that had undertaken eco-friendly practices] with a control firm that did not initiate eco-friendly practices but was similar across a variety of factors, including its geographical location, size, sales, and assets…Companies that engaged in eco-activities generally fell into one of two buckets: those that engaged in activities that could be performed independently and those that engaged in activities that required collaboration with other companies…Among companies that engaged in eco-activities, a subset also followed the directives of, and received certification from, a standard-setting organization like the U.S. Green Building Council, which offers the popular LEED certification…Companies that obtained a certification had substantially better operating income, gross profit, and revenue than the control companies they were compared against – more than compensating for the higher costs they faced. …
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