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How Green Public Procurement can drive conversion of farmland: An empirical analysis of an organic food policy

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  • Lindström, Hanna
  • Lundberg, Sofia
  • Marklund, Per-Olov

Abstract

This paper studies a Green Public Procurement (GPP) policy decided by the Swedish government in 2006, stating objectives related to organic farming. The policy aims to increase the public sector's organic food purchases, in order to incentivise Swedish farmers to convert to organic practices, thereby contributing to national environmental quality objectives. We analyse the effect of organic food procurement on organic agricultural land, using panel data from 2003 to 2016 including information on municipalities' organic food purchases, land use, and direct subsidies aimed at organic production. Based on different specifications and mainly FGLS estimations, we conclude that the 2006 organic food policy is associated with a significant positive impact on organic agricultural land. A significant effect of direct agricultural policy in the form of subsidies is also found.

Suggested Citation

  • Lindström, Hanna & Lundberg, Sofia & Marklund, Per-Olov, 2020. "How Green Public Procurement can drive conversion of farmland: An empirical analysis of an organic food policy," Ecological Economics, Elsevier, vol. 172(C).
    • Handle: RePEc:eee:ecolec:v:172:y:2020:i:c:s0921800919310031
    DOI: 10.1016/j.ecolecon.2020.106622
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    More about this item

    Keywords

    Agricultural policy; Environmental policy analysis; Organic food policy; Organic farming; Green public procurement;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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