Assessment of Green Public Procurement as a Policy Tool: Cost-Efficiency and Competition Considerations

27 Pages Posted: 13 May 2011

See all articles by Sofia Lundberg

Sofia Lundberg

University of Umea - Department of Economics

Per-Olov Marklund

Umeå University - Centre for Environmental and Resource Economics

Runar Brännlund

Umeå University - Centre for Environmental and Resource Economics

Date Written: May 8, 2009

Abstract

Public procurement is officially regarded as an effective means to secure environmental improvement. Estimates by the European Commission indicate that public authorities within the European Union typically purchase goods and services corresponding to approximately 16 percent of GNP per annum. Hence, it is believed, private firms can be stimulated to invest in sustainable production technologies if the market power of public bodies is exerted through Green Public Procurement (GPP) policies. In this paper we assess whether GPP is a cost-efficient policy tool, and if so whether its implementation can, from a welfare perspective, deter or stimulate entry to procurement markets.

Keywords: Competitive Bidding, Cost-efficiency, GPP, Procurement auctions, Sustainability

JEL Classification: H57, Q01, Q28

Suggested Citation

Lundberg, Sofia and Marklund, Per-Olov and Brännlund, Runar, Assessment of Green Public Procurement as a Policy Tool: Cost-Efficiency and Competition Considerations (May 8, 2009). Available at SSRN: https://ssrn.com/abstract=1831089 or http://dx.doi.org/10.2139/ssrn.1831089

Sofia Lundberg (Contact Author)

University of Umea - Department of Economics ( email )

Umeå University
Umea, SE - 90187
Sweden

Per-Olov Marklund

Umeå University - Centre for Environmental and Resource Economics ( email )

Umeå, S-901 87
Sweden

Runar Brännlund

Umeå University - Centre for Environmental and Resource Economics ( email )

Umeå, S-901 87
Sweden

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