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Using Public Procurement as a Decarbonisation Policy: A Look at Germany

Author

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  • Olga Chiappinelli
  • Vera Zipperer

Abstract

Public authorities spend large proportions of their GDP on goods and services and are therefore responsible for a significant share of embedded emissions. Given this large impact, governments have the responsibility of decarbonizing their purchases, as well as the potential to influence markets towards sustainability. So-called ‘Green Public Procurement’ (GPP) consists in the use of environmental criteria in the procurement process. In Germany, Europe’s biggest economy, public purchases account for 15 percent of annual GDP. However, despite a rising trend, the use of GPP in public procurement contracts remains marginal. The main barriers to broader implementation is the perception that including environmental criteria leads to higher procurement costs. Further, administrative capacity faces constraints to acquire legal and technical expertise about GPP. A clear political mandate for financing the incremental costs incurred from the environmental impact of procured goods and services, as well as specific training programs for procurement officials can encourage an increased adoption of GPP in the future.

Suggested Citation

  • Olga Chiappinelli & Vera Zipperer, 2017. "Using Public Procurement as a Decarbonisation Policy: A Look at Germany," DIW Economic Bulletin, DIW Berlin, German Institute for Economic Research, vol. 7(49), pages 523-532.
    • Handle: RePEc:diw:diwdeb:2017-49-2
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.572799.de/diw_econ_bull_2017-49-2.pdf
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    Citations

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    Cited by:

    1. Olga Chiappinelli & Gyula Seres, 2021. "Optimal Discounts in Green Public Procurement," Discussion Papers of DIW Berlin 1983, DIW Berlin, German Institute for Economic Research.
    2. Skoczkowski, Tadeusz & Verdolini, Elena & Bielecki, Sławomir & Kochański, Max & Korczak, Katarzyna & Węglarz, Arkadiusz, 2020. "Technology innovation system analysis of decarbonisation options in the EU steel industry," Energy, Elsevier, vol. 212(C).
    3. Timo Gerres & Manuel Haussner & Karsten Neuhoff & Alice Pirlot, 2019. "Can Governments Ban Materials with Large Carbon Footprint? Legal and Administrative Assessment of Product Carbon Requirements," Discussion Papers of DIW Berlin 1834, DIW Berlin, German Institute for Economic Research.
    4. André Sapir & Tom Schraepen & Simone Tagliapietra, 2022. "Green Public Procurement: A Neglected Tool in the European Green Deal Toolbox?," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 57(3), pages 175-178, May.
    5. Rainer Kattel & Mariana Mazzucato & Keno Haverkamp & Josh Ryan-Collins, 2020. "Industriestrategie der nächsten Generation für Deutschland," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 100(10), pages 757-762, October.

    More about this item

    Keywords

    Green public procurement; government spending; carbon footprint; environmental policies;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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