This chapter argues that participation in voluntary programs can facilitate ongoing quality competition, enabling a race. It advances a theory of self-regulatory competition that may sustain this race. From this perspective, programs can be designed to facilitate a race to the top despite tendencies for label managers to compete for the lowest common denominator or for firms to greenwash and strategically overrepresent their environmental performance. Building on the premise underpinning demonstration projects improving supply chains and facilitating uptake of new technologies, it highlights how ecolabel programs can help transform markets. Once a market becomes crowded, new standards can be set, raising the bar for building performance. Data from the LEED program demonstrate that, over time, organizations and especially private firms invest additional resources to attain higher certification tiers, becoming greener as part of a race to the top in a voluntary, green building certification program.

This chapter takes stock of Green Market Transformation in the built environment and explores the potential to replicate this model. It notes that market-based solutions, while canonical in policy spheres, have failed to solve the climate problem. Instead, by drawing upon Elinor Ostrom’s work, opportunities for institutions and polycentric solutions as well as to leverage voluntary actions are observed. Rather than frame the problem of markets versus regulation, the limits of both are recognized and a way to harmonize them sought. When ecological crises require massive solutions, we look to harness the power of market forces rather than sideline one of our most effective institutions. A vital role is seen for policy to guide and foster markets to find and implement solutions. The scale of the problems facing us demands a grassroots, bottom-up approach that enlists the efforts of households, workers, and firms around the planet. The challenge for policy-makers is in facilitating that and in devising and supporting mechanisms so that voluntary action also serves the greater public benefit.