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Is Environmental Policy by Public Procurement Effective?

Author

Listed:
  • Lundberg, Sofia

    (Department of Economics, Umeå School of Business and Economics)

  • Marklund, Per-Olov

    (Department of Economics, Umeå School of Business and Economics)

  • Strömbäck, Elon

    (Department of Economics, Umeå School of Business and Economics)

Abstract

Advocates of green public procurement (GPP) argue that the public sector can use its purchasing power to influence producers and consumers to reduce their negative impact on the environment. Our aim is to assess GPP as an environmental policy instrument and its ability to lead to the achievement of environmental objectives. Central to our analysis is the extent to which polluting firms choose to adapt to the public sector’s environmental requirements and to invest in greener technologies. Our theoretical finding is that the potential of GPP to function as an objective effective instrument of environmental policy is limited and can actually be counterproductive. From an environmental policy point of view, it is crucial that the GPP aims for an environmental standard beyond the technology of the polluting firms and is designed with reference to defined environmental objectives.

Suggested Citation

  • Lundberg, Sofia & Marklund, Per-Olov & Strömbäck, Elon, 2015. "Is Environmental Policy by Public Procurement Effective?," Umeå Economic Studies 911, Umeå University, Department of Economics.
    • Handle: RePEc:hhs:umnees:0911
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    Cited by:

    1. Maréchal, François & Morand, Pierre-Henri, 2022. "Are social and environmental clauses a tool for favoritism? Analysis of French public procurement contracts," European Journal of Political Economy, Elsevier, vol. 73(C).
    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. Qi Wang & Junqi Liu, 2023. "Demand-side and traditional environmental regulations in green construction: the moderating role of CNSC and SOE intensity," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6897-6938, July.
    4. Lindström, Hanna & Lundberg, Sofia & Marklund, Per-Olov, 2021. "Green Public Procurement: An empirical analysis of the uptake of organic food policy," Umeå Economic Studies 997, Umeå University, Department of Economics.
    5. Sofia Lundberg & Per-Olov Marklund, 2018. "Green public procurement and multiple environmental objectives," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(1), pages 37-53, March.
    6. Gao, Jinqi & Lu, Fan, 2025. "Evaluating green policies: A comparative analysis of subsidies and public procurement in green transition," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1675-1694.
    7. Joel Ntsonde & Franck Aggeri, 2021. "Stimulating innovation and creating new markets – The potential of circular public procurement," Post-Print hal-03447721, HAL.
    8. Zhang, Zhaowen & Jiang, Yaohui, 2022. "Can green public procurement change energy efficiency? Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 113(C).
    9. Pierre-Henri Morand & François Maréchal, 2021. "Are social and environmental clauses a tool for favoritism? Analysis of French public procurement contracts ," Post-Print hal-03418572, HAL.
    10. Liu, Jun & Zhao, Weilin & Zhuang, Castiel Chen, 2025. "Going green or losing edge? The impact of government procurement on carbon reduction and firm value in China," Energy Economics, Elsevier, vol. 142(C).
    11. 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.
    12. Pierre-Henri Morand & François Marechal, 2023. "Achats publics responsables et achat local : enseignements des données ouvertes françaises," Post-Print hal-03842464, HAL.
    13. Yanlin Ma & Yuting Liu & Andrea Appolloni & Junqi Liu, 2021. "Does green public procurement encourage firm's environmental certification practice? The mediation role of top management support," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 1002-1017, May.
    14. 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).
    15. Katriina Alhola & Sven‐ Olof Ryding & Hanna Salmenperä & Niels Juul Busch, 2019. "Exploiting the Potential of Public Procurement: Opportunities for Circular Economy," Journal of Industrial Ecology, Yale University, vol. 23(1), pages 96-109, February.
    16. Gao, Jinqi & Lu, Fan, 2025. "Green public procurement, external pressures and enterprise green transition: Evidence from China," Journal of Asian Economics, Elsevier, vol. 98(C).
    17. Fabio Iannone & Francesco Testa & Tiberio Daddi & Marco Frey & Giulia Casamento, 2019. "The role of Green Public Procurement in Circular Economy policies: An international comparison," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(2), pages 149-170.
    18. Rodrigo Lozano & Felippe Santos & Maria Barreiro-Gen, 2024. "Developing a harmonic sustainable public procurement framework," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(1), pages 2291-2306, January.

    More about this item

    Keywords

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    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • 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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