Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v113y2022ics0140988322003875.html
   My bibliography  Save this article

Can green public procurement change energy efficiency? Evidence from a quasi-natural experiment in China

Author

Listed:
  • Zhang, Zhaowen
  • Jiang, Yaohui
Abstract
Green public procurement (GPP) is an important way to achieve environmentally friendly products, but there is no evidence on whether it can improve the efficiency of corresponding firms. Accordingly, this study constructs a difference-in-differences model using the first Chinese green procurement list enacted as a quasi-natural experiment. We constructed a large sample of firm-level data by cleaning and matching China's industrial, emissions, and patent databases. The baseline model finds that GPP significantly improves the energy efficiency of regulated firms, and further, the robustness of the regression results is verified by the substitution of explained variables, the exclusion of other contemporaneous policies, the reduction of self-selection bias, and a placebo test. The mechanism test confirms that GPP encourages regulated firms to optimize energy consumption structure, and promotes them to improve production processes and technology. The heterogeneity test show that GPP improves the energy efficiency of firms in the eastern and central regions, with stronger promotional utility among state-owned enterprises and large firms. Finally, based on input-output correlation data, this study explores the spillover effects of the policy in the production network, where the implementation of green procurement can improve the energy efficiency of key upstream industries.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:eneeco:v:113:y:2022:i:c:s0140988322003875
    DOI: 10.1016/j.eneco.2022.106244
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988322003875
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2022.106244?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Eva Lyubich & Joseph S. Shapiro & Reed Walker, 2018. "Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy," Working Papers 18-03, Center for Economic Studies, U.S. Census Bureau.
    2. Vasco M Carvalho & Makoto Nirei & Yukiko U Saito & Alireza Tahbaz-Salehi, 2021. "Supply Chain Disruptions: Evidence from the Great East Japan Earthquake," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(2), pages 1255-1321.
    3. Demirgüç-Kunt, Asli & Horváth, Bálint L. & Huizinga, Harry, 2020. "Foreign banks and international transmission of monetary policy: Evidence from the syndicated loan market," European Economic Review, Elsevier, vol. 129(C).
    4. Wen-Tien Tsai, 2017. "Green public procurement and green-mark products strategies for mitigating greenhouse gas emissions—experience from Taiwan," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 22(5), pages 729-742, June.
    5. Zhang, Bing & Chen, Xiaolan & Guo, Huanxiu, 2018. "Does central supervision enhance local environmental enforcement? Quasi-experimental evidence from China," Journal of Public Economics, Elsevier, vol. 164(C), pages 70-90.
    6. 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).
    7. Julien Chicot & Mireille Matt, 2018. "Public procurement of innovation: a review of rationales, designs, and contributions to grand challenges," Science and Public Policy, Oxford University Press, vol. 45(4), pages 480-492.
    8. 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.
    9. Daron Acemoglu & Pablo D. Azar, 2020. "Endogenous Production Networks," Econometrica, Econometric Society, vol. 88(1), pages 33-82, January.
    10. Ren, Siyu & Hao, Yu & Wu, Haitao, 2022. "The role of outward foreign direct investment (OFDI) on green total factor energy efficiency: Does institutional quality matters? Evidence from China," Resources Policy, Elsevier, vol. 76(C).
    11. Zhang, Yixiang & Li, Juan & Tao, Wenwen, 2021. "Does energy efficiency affect appliance prices? Empirical analysis of air conditioners in China based on propensity score matching," Energy Economics, Elsevier, vol. 101(C).
    12. Chen, Zhao & Kahn, Matthew E. & Liu, Yu & Wang, Zhi, 2018. "The consequences of spatially differentiated water pollution regulation in China," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 468-485.
    13. Chang-Tai Hsieh & Peter J. Klenow, 2009. "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1403-1448.
    14. Giorgio Petroni & Barbara Bigliardi & Francesco Galati, 2019. "Rethinking the Porter Hypothesis: The Underappreciated Importance of Value Appropriation and Pollution Intensity," Review of Policy Research, Policy Studies Organization, vol. 36(1), pages 121-140, January.
    15. Bleda, Mercedes & Chicot, Julien, 2020. "The role of public procurement in the formation of markets for innovation," Journal of Business Research, Elsevier, vol. 107(C), pages 186-196.
    16. Shengguo Xu & Chunli Chu & Meiting Ju & Chaofeng Shao, 2016. "System Establishment and Method Application for Quantitatively Evaluating the Green Degree of the Products in Green Public Procurement," Sustainability, MDPI, vol. 8(9), pages 1-12, September.
    17. Vasco M. Carvalho & Alireza Tahbaz-Salehi, 2019. "Production Networks: A Primer," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 635-663, August.
    18. Guerzoni, Marco & Raiteri, Emilio, 2015. "Demand-side vs. supply-side technology policies: Hidden treatment and new empirical evidence on the policy mix," Research Policy, Elsevier, vol. 44(3), pages 726-747.
    19. AlNuaimi, Bader K. & Singh, Sanjay Kumar & Harney, Brian, 2021. "Unpacking the role of innovation capability: Exploring the impact of leadership style on green procurement via a natural resource-based perspective," Journal of Business Research, Elsevier, vol. 134(C), pages 78-88.
    20. Eva Lyubich & Joseph Shapiro & Reed Walker, 2018. "Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 136-142, May.
    21. Wei Chen & Luwen Gao & Xing Xu & Yan Zeng & Fahad Al Basir, 2022. "Does Stricter Command-and-Control Environmental Regulation Promote Total Factor Productivity? Evidence from China’s Industrial Enterprises," Discrete Dynamics in Nature and Society, Hindawi, vol. 2022, pages 1-12, March.
    22. Dios, M. & Souto, J.A. & Casares, J.J., 2013. "Experimental development of CO2, SO2 and NOx emission factors for mixed lignite and subbituminous coal-fired power plant," Energy, Elsevier, vol. 53(C), pages 40-51.
    23. Edeltraud Günther & Lilly Scheibe, 2006. "The hurdle analysis. A self‐evaluation tool for municipalities to identify, analyse and overcome hurdles to green procurement," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 13(2), pages 61-77, May.
    24. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    25. Sofia Lundberg & Per-Olov Marklund & Elon Strömbäck, 2016. "Is Environmental Policy by Public Procurement Effective?," Public Finance Review, , vol. 44(4), pages 478-499, July.
    26. Phoebe Bolton, 2008. "Protecting the environment through public procurement: The case of South Africa," Natural Resources Forum, Blackwell Publishing, vol. 32(1), pages 1-10, February.
    27. Matti Pihlajamaa & Maria Merisalo, 2021. "Organizing innovation contests for public procurement of innovation – a case study of smart city hackathons in Tampere, Finland," European Planning Studies, Taylor & Francis Journals, vol. 29(10), pages 1906-1924, October.
    28. Ernest Liu, 2019. "Industrial Policies in Production Networks," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(4), pages 1883-1948.
    29. Simcoe, Timothy & Toffel, Michael W., 2014. "Government green procurement spillovers: Evidence from municipal building policies in California," Journal of Environmental Economics and Management, Elsevier, vol. 68(3), pages 411-434.
    30. Miller, Fiona A. & Lehoux, Pascale, 2020. "The innovation impacts of public procurement offices: The case of healthcare procurement," Research Policy, Elsevier, vol. 49(7).
    31. Paolo Zacchia, 2020. "Knowledge Spillovers through Networks of Scientists," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(4), pages 1989-2018.
    32. Witjes, Sjors & Lozano, Rodrigo, 2016. "Towards a more Circular Economy: Proposing a framework linking sustainable public procurement and sustainable business models," Resources, Conservation & Recycling, Elsevier, vol. 112(C), pages 37-44.
    33. Plaček, Michal & Valentinov, Vladislav & del Campo, Cristina & Vaceková, Gabriela & Ochrana, František & Šumpíková, Markéta, 2021. "Stewardship and administrative capacity in green public procurement in the Czech Republic: Evidence from a large-N survey," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 33.
    34. Koichiro Ito & Takanori Ida & Makoto Tanaka, 2018. "Moral Suasion and Economic Incentives: Field Experimental Evidence from Energy Demand," American Economic Journal: Economic Policy, American Economic Association, vol. 10(1), pages 240-267, February.
    35. Eva Lyubich & Joseph Shapiro & Reed Walker, 2018. "Regulating Mismeasured Pollution: Implications of Firm Heterogeneity for Environmental Policy," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 136-142, May.
    36. Wang, Zilong & Wang, Xinbin, 2022. "Research on the impact of green finance on energy efficiency in different regions of China based on the DEA-Tobit model," Resources Policy, Elsevier, vol. 77(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qi, Yu & Zhang, Hongxuan & Shao, Shuai, 2024. "Valuing high temperature's fiscal costs: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 134-152.
    2. Wang, Jiaxin & Huang, Xiang & Liu, Chengxin & Sun, Di & Song, Zilong, 2024. "Political risk of green public procurement and firms' green innovation," Finance Research Letters, Elsevier, vol. 62(PB).
    3. Cui, Huanyu & Cao, Yuequn, 2023. "How can market-oriented environmental regulation improve urban energy efficiency? Evidence from quasi-experiment in China's SO2 trading emissions system," Energy, Elsevier, vol. 278(C).
    4. Zhu, Yuke & Lan, Mudan, 2023. "Digital economy and carbon rebound effect: Evidence from Chinese cities," Energy Economics, Elsevier, vol. 126(C).
    5. Cui, Yadong & Jiang, Yaohui & Zhang, Zhaowen & Xu, Su, 2023. "Tax reduction, technological progress, and energy efficiency improvement: A quasi-natural experiment from China," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 618-633.
    6. Rosell, Jordi, 2023. "Did governments neglect the environment during the COVID-19 pandemic? An empirical analysis of green public procurement," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 835-849.
    7. Yu, Weihua & Liang, Wenjing & Yao, Xin, 2024. "The effect of the county-to-district conversion policy on energy efficiency of enterprises: Evidence from China," Energy Economics, Elsevier, vol. 134(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Xu, Hao & Xu, Jingxuan & Wang, Jie & Hou, Xiang, 2023. "Reduce production or increase efficiency? Hazardous air pollutants regulation, energy use, and the synergistic effect on industrial enterprises' carbon emission," Energy Economics, Elsevier, vol. 126(C).
    3. Wang, Huanhuan & Xiong, Jiaxin, 2022. "Governance on water pollution: Evidence from a new river regulatory system of China," Economic Modelling, Elsevier, vol. 113(C).
    4. Thomas J. Sargent & John Stachurski, 2022. "Economic Networks: Theory and Computation," Papers 2203.11972, arXiv.org, revised Jul 2022.
    5. Xi Lin & Ling-Yun He, 2023. "The More the Merrier? Evidence from Firm-Level Exports and Environmental Performance in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(1), pages 125-172, January.
    6. Takuro Miyamoto & Naonari Yajima & Takahiro Tsukahara & Toshi H. Arimura, 2020. "Advancement of Green Public Purchasing by Category: Do Municipality Green Purchasing Policies Have Any Role in Japan?," Sustainability, MDPI, vol. 12(21), pages 1-24, October.
    7. Xi Lin & Ling‐Yun He, 2023. "‘Going global’ and pollution in home country: Evidence from Chinese industrial firms," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(4), pages 1135-1174, October.
    8. Liu, Rui & Zheng, Linhao & Chen, Zheang & Cheng, Mengyao & Ren, Yuzhuo, 2024. "Digitalization through supply chains: Evidence from the customer concentration of Chinese listed companies," Economic Modelling, Elsevier, vol. 134(C).
    9. Huang, Ruting & Yao, Xin, 2024. "City size and energy efficiency of Chinese manufacturing firms: An empirical study from a city characteristic perspective," Energy Economics, Elsevier, vol. 129(C).
    10. Jia, Shanghui & Chen, Xinhui & Jin, Jiayu, 2024. "Digital disruption and energy efficiency: The impact of regional digitalization on China's industrial sector," Energy, Elsevier, vol. 300(C).
    11. Wei, Hao & Zhou, Yaru, 2023. "The impact of international talent on environmental pollution: Firm-level evidence from China," Energy Economics, Elsevier, vol. 125(C).
    12. Mary Amiti & Cedric Duprez & Jozef Konings & John Van Reenen, 2023. "FDI and superstar spillovers: Evidence from firm-to-firm transactions," POID Working Papers 070_updated, Centre for Economic Performance, LSE.
    13. Jonathan T. Hawkins-Pierot & Katherine R. H. Wagner, 2022. "Technology Lock-In and Optimal Carbon Pricing," CESifo Working Paper Series 9762, CESifo.
    14. Krieger, Bastian & Zipperer, Vera, 2022. "Does green public procurement trigger environmental innovations?," Research Policy, Elsevier, vol. 51(6).
    15. Ernest Liu & Aleh Tsyvinski, 2021. "Dynamical Structure and Spectral Properties of Input-Output Networks," Working Papers 2021-13, Princeton University. Economics Department..
    16. Ritz, Robert A., 2022. "Global carbon price asymmetry," Journal of Environmental Economics and Management, Elsevier, vol. 114(C).
    17. Rocsana Bucea-Manea-Țoniș & Oliva Maria Dourado Martins & Dragan Ilic & Mădălina Belous & Radu Bucea-Manea-Țoniș & Cezar Braicu & Violeta-Elena Simion, 2020. "Green and Sustainable Public Procurement—An Instrument for Nudging Consumer Behavior. A Case Study on Romanian Green Public Agriculture across Different Sectors of Activity," Sustainability, MDPI, vol. 13(1), pages 1-25, December.
    18. Li, Zhen & Wu, Baijun & Wang, Danyang & Tang, Maogang, 2022. "Government mandatory energy-biased technological progress and enterprises' environmental performance: Evidence from a quasi-natural experiment of cleaner production standards in China," Energy Policy, Elsevier, vol. 162(C).
    19. Shiyu Bo, 2021. "Environmental Regulations, Political Incentives and Local Economic Activities: Evidence from China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(3), pages 812-835, June.
    20. Pellet, Thomas & Tahbaz-Salehi, Alireza, 2023. "Rigid production networks," Journal of Monetary Economics, Elsevier, vol. 137(C), pages 86-102.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:113:y:2022:i:c:s0140988322003875. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.