Marketing and Executing of Los Angeles Benchmarking Ordinance for Existing Buildings Energy

Project Summary

Currently, buildings contribute nearly 40 percent of CO2 emissions in Los Angeles County. A major step to realizing reduced consumption is encouraging property owners to monitor use and implement more sustainable infrastructure. This report, led by an Anderson School of Management team, analyzes the "Existing Buildings Energy and Water Efficiency Program" or LA Benchmarking Ordinance.  This policy encourages property managers to release energy consumption data  which will facilitate higher demand of energy efficient infrastructure.  Case studies of benchmarking ordinances in other cities showed that none of the cities made the data available to the public, thus limiting the potential reduction in emissions. The analysis of benchmarking ordinances resulted in minor policy change suggestions. This report reveals market mechanisms that influence the efficacy of sustainable initiatives, giving a clear blueprint for syncing infrastructure development with renewable energy development. The proposed marketing plan will help strengthen the LA Benchmarking Ordinance which will increase renewable infrastructure and move L.A. closer towards realizing a renewable energy future.  

Research Team

Matteo Bastreghi
Anderson School of Management

Yu Chen
Anderson School of Management

Avani Kamath
Anderson School of Management

Shane Malott
Anderson School of Management

Brian Wasige
Anderson School of Management

Advisor: Ehud Peleg
Finance, Anderson School of Management

OTHER COLLABORATORS

Anderson School of Management Applied Managment Research Program

Progress and Results

The Anderson Resource Management report found that energy benchmarking ordinances in the US often fail to publicly disclose the data on building energy consumption. The report shows that the LA Benchmarking Ordinance can align property owner incentives with stakeholder incentives and sustainability goals through marketing the energy use information. The team produced a marketing and implementation plan for the LA Benchmarking data. 

Other Information of Interest

Project photo showing los angeles downtown skyline

Category

Award Year

2016