“…In the policy stream, two “internal” characteristics that proxy financial viability and public acceptability were incorporated: (i) tax revenue as a percentage of the state GDP as a measure of the fiscal capacity of the state to enforce the code (Nelson, 2012); and (ii) per capita income—in the log form—as an indicator of the ability or willingness of the citizens to pay a higher price for energy‐efficient buildings (Chandler, 2009; Cia Alves, Steiner, de Almeida Medeiros, & da Silva, 2019; Nelson, 2012; Stadelmann & Castro, 2014; Yi, Feiock, & Berry, 2017). In addition, I included five control variables which capture dyadic similarities that might influence the policy stream of the receiver: (i) whether the states share a common border (Chandler, 2009; Mooney, 2001; Stoutenborough & Beverlin, 2008); (ii) whether the states are part of the same regional electricity grid; (iii) absolute difference in electricity supply; (iv) absolute difference in the log of GDP; and (v) absolute difference in the log of population.…”