From Buildings to Blocks: Developing A Policy Framework for Achieving Deep Decarbonization and Economic Development at the Neighborhood Scale

As New York State works toward its net-zero targets, finding ways to achieve neighborhood-scale decarbonization while promoting economic development and energy equity is a major priority. The New York State Energy Research & Development Authority (NYSERDA) has asked the Capstone team to develop a policy framework that will leverage  existing programs, case studies, and stakeholder engagement to explore strategies for creating low-carbon, resilient, and economically viable neighborhoods. 

Using a Theory of Change framework, the study identified key inputs — including technical assistance, financial mechanisms, and regulations/ policies for “neighborhoods” (including commercial, residential, industrial and mixed-use properties). It examined how targeted initiatives such as clean energy hubs, multifamily housing retrofits, and industrial and commercial electrification drive measurable outcomes like lower energy costs, reduced emissions, and equitable energy transitions. 

The research integrates national and international case studies to assess best practices, financial feasibility, and policy gaps, while a stakeholder mapping exercise analyzes the roles of policymakers, utilities, community organizations, and private-sector actors in shaping decarbonization efforts. Special attention is given to low- and moderate-income communities, ensuring that proposed strategies prioritize affordability and long-term social benefits. The study culminated in an actionable policy framework that outlined funding mechanisms, regulatory pathways, and incentive structures to accelerate neighborhood-scale decarbonization. By bridging policy, economics, and social equity, this project provided a roadmap for sustainable, community-centered energy transitions.