Using public procurement to implement environmental policy: an empirical analysis

Sofia Lundberg (), Per-Olov Marklund (), Elon Strömbäck () and David Sundström ()

Environmental Economics and Policy Studies, 2015, vol. 17, issue 4, 487-520

Abstract: Politicians expect green public procurement (GPP) to serve as an environmental policy instrument. However, in order for GPP to work as an effective policy instrument, it is important to take into consideration potential suppliers’ decisions to participate in the procurement process, the total number of bidders, and the screening of bidders with respect to mandatory green criteria. The aim of this paper is to empirically study GPP in this respect. The analysis presented here is based on data from Swedish cleaning service procurements that are unique in that they contain very detailed information on various environmental standards set by the contracting authorities. We find at best only a weak effect on supplier behavior, and this suggests that the use of GPP in this situation does not live up to its political expectations. Copyright The Author(s) 2015

Keywords: Auctions; Compliance cost; Degree of competition; Endogenous entry; Objective effectiveness; D44; H57; Q01; Q28 (search for similar items in EconPapers)
JEL-codes: D44 H57 Q01 Q28 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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DOI: 10.1007/s10018-015-0102-9

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