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The role of government procurement in enhancing energy firms’ productivity: An empirical analysis

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  • Li, Xiaoping
  • Yan, Muci
  • Ren, Xiaohang
  • Taghizadeh-Hesary, Farhad

Abstract

This study conducts a comprehensive examination of the influence of government procurement on the total factor productivity (TFP) of Chinese energy listed firms from 2015 to 2022. Our analysis examines a significant positive impact of government procurement on TFP, and this effect is particularly pronounced among large, private, high-tech and low-polluting enterprises. Notably, we find that green innovation and market competition strengthens the positive relationship between procurement and TFP. Government procurement and subsidies, rather than tax incentives, exert a positive synergistic effect on improving total factor productivity. Additionally, government procurement suppresses rent-seeking. This research offers empirical insights into optimizing government procurement policies and holds implications for fostering sustainable growth in the energy industry.

Suggested Citation

  • Li, Xiaoping & Yan, Muci & Ren, Xiaohang & Taghizadeh-Hesary, Farhad, 2026. "The role of government procurement in enhancing energy firms’ productivity: An empirical analysis," Economic Analysis and Policy, Elsevier, vol. 90(C), pages 1369-1385.
    • Handle: RePEc:eee:ecanpo:v:90:y:2026:i:c:p:1369-1385
    DOI: 10.1016/j.eap.2026.02.018
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