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Public Procurement, Local Labor Markets and Green Technological Change: Evidence from US Commuting Zones

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  • Orsatti, Gianluca
  • Perruchas, François
  • Consoli, Davide
  • Quatraro, Francesco

    (University of Turin)

Abstract

The present paper investigates whether and through which channels green public procurement (GPP) stimulates local environmental innovation capacity. To this end, we use detailed data sources on green patents and procurement expenditure at the level of US Commuting Zones for the period 2000-2011. We also check for the moderating effects of local labor market composition in the relation between green public procurement and green innovation capacity. Lastly, we exploit the richness of patent information to test for differential effects of green public procurement on different classes of green technologies. The main finding is that GPP is an important driver in explaining the growth of local green-tech stock. The positive effect of GPP is mainly driven by expenditures for procured green services and is magnified by the local presence of high shares of abstract- intensive occupations. When separately considering diverse kinds of green technologies, we do find evidence of a more pronounced effect of GPP on the growth of local knowledge stocks of mitigation technologies.

Suggested Citation

  • Orsatti, Gianluca & Perruchas, François & Consoli, Davide & Quatraro, Francesco, 2018. "Public Procurement, Local Labor Markets and Green Technological Change: Evidence from US Commuting Zones," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201807, University of Turin.
  • Handle: RePEc:uto:dipeco:201807
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