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Green Public Procurement as an Environmental Policy Instrument:Cost Effectiveness

Author

Listed:
  • Lundberg, Sofia

    (Department of Economics, Umeå University)

  • Marklund, Per-Olov

    (Center for Regional Science at Umeå University)

Abstract

Estimates by the European Commission indicate that public authorities within the European Union typically purchase goods and services corresponding to approximately 16 percent of GDP per annum. Hence, it is believed, private firms can be stimulated to invest in less polluting production technologies if the market power of public bodies is exerted through Green Public Procurement (GPP) policies and legislation. It is commonly argued that there are considerable possibilities for cost-effective GPP. The aim of this paper is to scrutinize this argument by specifically answer the question whether GPP can work as a cost-effective environmental policy instrument in terms of leading firms to reducing emissions at least cost to society. Our main finding shows that this is not the case.

Suggested Citation

  • Lundberg, Sofia & Marklund, Per-Olov, 2012. "Green Public Procurement as an Environmental Policy Instrument:Cost Effectiveness," Umeå Economic Studies 847, Umeå University, Department of Economics.
    • Handle: RePEc:hhs:umnees:0847
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    Citations

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    Cited by:

    1. Jörgensen, Christian, 2021. "Stimulating green production through the public procurement of final products – the case of organic food," AgriFood-WP 2021:2, Lund University, AgriFood Economics Centre.
    2. Sundström, David, 2016. "A Comparison of Techniques to Evaluate Policies in Public Procurement," Umeå Economic Studies 928, Umeå University, Department of Economics, revised 17 Jun 2016.
    3. Sofia Lundberg & Per-Olov Marklund & Elon Strömbäck & David Sundström, 2015. "Using public procurement to implement environmental policy: an empirical analysis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(4), pages 487-520, October.
    4. Ionel Bostan & Cristina Mihaela Lazar & Nicoleta Asalos, 2020. "Legislative Means Aimed at Stimulating Green Procurement in the Public Sector. A Critical Case Study of Romania," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(53), pages 221-221, February.
    5. 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).
    6. Strömbäck, Elon, 2015. "Policy by Public Procurement: Opportunities and Pitfalls," Umeå Economic Studies 915, Umeå University, Department of Economics.

    More about this item

    Keywords

    Auctions; Abatement; Compliance cost; Environmental objectives; Green technology; Investments;
    All these keywords.

    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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