IDEAS home Printed from https://ideas.repec.org/a/ibn/ijefaa/v17y2025i3p122.html
   My bibliography  Save this article

Impact Mechanism in Circular Public Procurement: Empirical Insights from Traditional Public Procurement and Public Private Partnership in China

Author

Listed:
  • Feng Guo

Abstract

Circular Public Procurement (CPP) serves as a policy instrument aimed at advancing circular economy (CE) objectives through public contracting. Despite its growing adoption, the mechanisms underlying its implementation across different procurement types remain insufficiently understood. This study examines the impact of CE policies in both traditional public procurement (TPP) and Public-Private Partnership (PPP) projects in China. Using data from 45,131 TPP projects and 6,245 PPP projects (2015-2021), a probit regression model analyzes the effects of internal factors, including contract value, procurement method, sector, industry, and contract period, alongside external factors such as attention allocation and marketization. The findings indicate that higher contract values enhance CE policy implementation in TPP, while in PPP projects, larger contract values diminish policy effectiveness by increasing financing pressures. In PPP projects, longer contract periods may alleviate these pressures and facilitate policy implementation. Procurement methods shape policy outcomes differently across procurement types. Competitive bidding strengthens the implementation of CE policies in TPP, while negotiation-based approaches align sustainability goals with financing constraints in PPP projects. Sector- and industry-specific dynamics further influence policy implementation, suggesting that engineering procurement in TPP and transportation and agriculture/forestry PPP projects require more focused attention on CE policy implementation. On the other hand, attention allocation and marketization positively influence policy outcomes by strengthening institutional support and fostering incentives for environmental compliance. Explicit explanations of these relations are provided. This study highlights several key measures to improve the effectiveness of CE policies in China’s public procurement system, including enhancing the legal framework, allocating government attention to PPP projects, promoting market-oriented reforms, and strengthening policy implementation in specific sectors.

Suggested Citation

  • Feng Guo, 2025. "Impact Mechanism in Circular Public Procurement: Empirical Insights from Traditional Public Procurement and Public Private Partnership in China," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 17(3), pages 122-122, March.
    • Handle: RePEc:ibn:ijefaa:v:17:y:2025:i:3:p:122
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ijef/article/download/0/0/51364/55799
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/ijef/article/view/0/51364
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jose Luis Fuentes-Bargues & Pablo Sebastian Ferrer-Gisbert & Mª. Carmen González-Cruz, 2018. "Analysis of Green Public Procurement of Works by Spanish Public Universities," IJERPH, MDPI, vol. 15(9), pages 1-20, August.
    2. Sofia Lingegård & Johanna Alkan Olsson & Anna Kadefors & Stefan Uppenberg, 2021. "Sustainable Public Procurement in Large Infrastructure Projects—Policy Implementation for Carbon Emission Reductions," Sustainability, MDPI, vol. 13(20), pages 1-21, October.
    3. Tom Willems & Wouter Van Dooren, 2016. "(De)Politicization Dynamics in Public-Private Partnerships (PPPs): Lessons from a comparison between UK and Flemish PPP policy," Public Management Review, Taylor & Francis Journals, vol. 18(2), pages 199-220, February.
    4. Fabian Herweg & Klaus M. Schmidt, 2017. "Auctions versus negotiations: the effects of inefficient renegotiation," RAND Journal of Economics, RAND Corporation, vol. 48(3), pages 647-672, August.
    5. Chunling Yu & Toru Morotomi & Haiping Yu, 2020. "What Influences Adoption of Green Award Criteria in a Public Contract? An Empirical Analysis of 2018 European Public Procurement Contract Award Notices," Sustainability, MDPI, vol. 12(3), pages 1-20, February.
    6. Baldi, Simona & Bottasso, Anna & Conti, Maurizio & Piccardo, Chiara, 2016. "To bid or not to bid: That is the question: Public procurement, project complexity and corruption," European Journal of Political Economy, Elsevier, vol. 43(C), pages 89-106.
    7. Chen, Zhao & Kahn, Matthew E. & Liu, Yu & Wang, Zhi, 2018. "The consequences of spatially differentiated water pollution regulation in China," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 468-485.
    8. Navarani Vejaratnam & Zeeda Fatimah Mohamad & Santha Chenayah, 2020. "A systematic review of barriers impeding the implementation of government green procurement," Journal of Public Procurement, Emerald Group Publishing Limited, vol. 20(4), pages 451-471, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. André Luiz Trajano Santos & Augusto Cunha Reis, 2025. "Public procurement from the triple bottom line lens: the identification of sustainability criteria from the international literature review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(5), pages 9805-9840, May.
    2. Krieger, Bastian & Zipperer, Vera, 2022. "Does green public procurement trigger environmental innovations?," Research Policy, Elsevier, vol. 51(6).
    3. Daniel Prudencio, 2023. "Productivity in Procurement Auctions of Pavement Contracts in Mexico," Journal of Productivity Analysis, Springer, vol. 60(1), pages 63-85, August.
    4. Fredo Schotanus & Cees J. Gelderman & René Jupijn, 2024. "Enablers and Barriers of Sustainability for Small Public Purchases," Sustainability, MDPI, vol. 16(22), pages 1-16, November.
    5. Felippe Santos & Per Hilletofth & Robin von Haartman, 2025. "Managing Organisational Changes for Collaboration Between Stakeholders in Sustainable Public Procurement," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(3), pages 3008-3026, May.
    6. Raymond Stokke & Xinlu Qiu & Magnus Sparrevik & Shannon Truloff & Iselin Borge & Luitzen Boer, 2023. "Procurement for zero-emission construction sites: a comparative study of four European cities," Environment Systems and Decisions, Springer, vol. 43(1), pages 72-86, March.
    7. Hu, Hui & Qi, Shaozhou & Chen, Yuanzhi, 2023. "Using green technology for a better tomorrow: How enterprises and government utilize the carbon trading system and incentive policies," China Economic Review, Elsevier, vol. 78(C).
    8. Mac Clay, Pablo & Börner, Jan & Sellare, Jorge, 2023. "Institutional and macroeconomic stability mediate the effect of auctions on renewable energy capacity," Energy Policy, Elsevier, vol. 180(C).
    9. Ning Zhang & Ying Mao, 2021. "Spatial Effects of Environmental Pollution on Healthcare Services: Evidence from China," IJERPH, MDPI, vol. 18(4), pages 1-21, February.
    10. Koetter, Michael & Krause, Thomas & Tonzer, Lena, 2019. "Delay determinants of European Banking Union implementation," European Journal of Political Economy, Elsevier, vol. 58(C), pages 1-20.
    11. Chen, Fenglan & Chen, Xing, 2025. "Mitigating pollution emissions of manufacturing firms: Does input servitization matter? Empirical evidence from China," Energy, Elsevier, vol. 320(C).
    12. Sedakov, Artem & Qiao, Han & Wang, Shouyang, 2021. "A model of river pollution as a dynamic game with network externalities," European Journal of Operational Research, Elsevier, vol. 290(3), pages 1136-1153.
    13. Alfredo Monte & Luca Pennacchio, 2020. "Corruption, Government Expenditure and Public Debt in OECD Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 62(4), pages 739-771, December.
    14. Yanyun Li & Faqin Lin & Wenxiao Wang, 2022. "Environmental regulation and inward foreign direct investment: Evidence from the eleventh Five‐Year Plan in China," Journal of Economic Surveys, Wiley Blackwell, vol. 36(3), pages 684-707, July.
    15. Baoting Peng & Xin Shen, 2024. "Does Environmental Regulation Affect Circular Economy Performance? Evidence from China," Sustainability, MDPI, vol. 16(11), pages 1-19, May.
    16. Zhongju Liao & Yuhan Wu, 2025. "Formal institutions, informal institutions, and firms' environmental innovation: An application of the fuzzy set qualitative comparative analysis method," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(1), pages 668-680, February.
    17. Mathilde Maurel & Thomas Pernet & Zhao Ruili, 2019. "Financial Dependencies, Environmental Regulation and Pollution Intensity: Evidence From China," Post-Print halshs-02423350, HAL.
    18. Jie, Guo & Jiahui, Lv, 2023. "Media attention, green technology innovation and industrial enterprises’ sustainable development: The moderating effect of environmental regulation," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 873-889.
    19. Cheng, Chen & Li, Siming & Liu, Shali & Zhang, Suge, 2022. "Origin matters: The institution imprint effect and green innovation in family businesses," Finance Research Letters, Elsevier, vol. 50(C).
    20. Li, Yuanheng & Chai, Xinyu & Su, Ruiqian & Chen, Kedong, 2025. "Impact of accelerated depreciation policies for fixed assets on firms’ green innovation performance," Finance Research Letters, Elsevier, vol. 74(C).

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijefaa:v:17:y:2025:i:3:p:122. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.