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Green Public Procurement as an Environmental Policy Instrument:Cost Effectiveness

  • Lundberg, Sofia


    (Department of Economics, Umeå University)

  • Marklund, Per-Olov


    (Center for Regional Science at Umeå University)

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    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.

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    Paper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 847.

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    Length: 26 pages
    Date of creation: 13 Sep 2012
    Date of revision:
    Handle: RePEc:hhs:umnees:0847
    Contact details of provider: Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
    Phone: 090 - 786 61 42
    Fax: 090 - 77 23 02
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