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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 LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201803, University of Turin.
    • Handle: RePEc:uto:labeco:201803
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    2. Krieger, Bastian & Rainville, Anne Marie, 2025. "The effects of public procurement requirements and voluntary standards on environmental product innovation," ZEW Discussion Papers 25-026, ZEW - Leibniz Centre for European Economic Research.
    3. Krieger, Bastian & Zipperer, Vera, 2022. "Does green public procurement trigger environmental innovations?," Research Policy, Elsevier, vol. 51(6).
    4. Shadrina, Elena V. & Vinogradov, Dmitri V. & Kashin, Dmitry V., 2022. "Implicit incentives in green public procurement: Good intentions versus rigid regulations," Ecological Economics, Elsevier, vol. 198(C).
    5. Fabrizio Fusillo & Gianluca Orsatti & Alessandra Scandura, 2025. "Public green demand and green innovation: evidence from US firms," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(3), pages 647-679, September.
    6. Chiappinelli, Olga & Giuffrida, Leonardo M. & Spagnolo, Giancarlo, 2025. "Public procurement as an innovation policy: Where do we stand?," International Journal of Industrial Organization, Elsevier, vol. 100(C).
    7. Zou, Ganna & Zhang, Shengbo & Gan, Xingqiong & Cheng, Hua, 2025. "How government green procurement incentivises corporate green innovation? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1605-1626.
    8. Gianluca Orsatti & Francesco Quatraro & Alessandra Scandura, 2020. "Regional differences in the generation of green technologies: the role of local recombinant capabilities and academic inventors," Carlo Alberto Notebooks 617, Collegio Carlo Alberto.
    9. Srabashi Ray & Thomas W. Hertel, 2025. "Effectiveness and Distributional Impacts of Conservation Policies: The Role of Labor Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(5), pages 1147-1193, May.
    10. Liao, Zhongju & Xu, Lijun & Zhang, Mengnan, 2024. "Government green procurement, technology mergers and acquisitions, and semiconductor firms’ environmental innovation: The moderating effect of executive compensation incentives," International Journal of Production Economics, Elsevier, vol. 273(C).
    11. Zheng, Suyi & Wen, Jiandong, 2024. "Green public procurement and corporate environmental performance: An empirical analysis based on data from green procurement contracts," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    12. Sebastian Losacker & Hendrik Hansmeier & Jens Horbach & Ingo Liefner, 2023. "The geography of environmental innovation: a critical review and agenda for future research," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 43(2), pages 291-316, August.
    13. Carolina Castaldi & Milad Abbasiharofteh & Sergio Petralia, 2025. "European regions transitioning to green markets. The role of related capabilities and public procurement policies," Papers in Evolutionary Economic Geography (PEEG) 2512, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2025.
    14. Krupnick, Alan, 2020. "Green Public Procurement for Natural Gas, Cement, and Steel," RFF Reports 20-17, Resources for the Future.
    15. Gianluca Orsatti, 2024. "Government R&D and green technology spillovers: the Chernobyl disaster as a natural experiment," The Journal of Technology Transfer, Springer, vol. 49(2), pages 581-608, April.
    16. Sebastian Ohlig & Linus Schmidt & Chiara Lichter & Moritz Harting & Lena Herrmann & Bastian Krieger, 2022. "Umweltfreundliche Öffentliche Beschaffung fördern mit People-Public-Private-Partnerships [Promoting Green Public Procurement with People-Public-Private-Partnerships]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(12), pages 971-975, December.

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