European Funds and Green Public Procurement

34 Pages Posted: 2 May 2023 Last revised: 3 Apr 2024

See all articles by Ruben Nicolas

Ruben Nicolas

Utrecht School of Economics

Vítězslav Titl

Utrecht University - School of Economics; Charles University in Prague - Department of Economics

Fredo Schotanus

Utrecht University - School of Economics

Abstract

To stimulate sustainable economic development and a greener economy, the European Commission co-funds public projects through the European Structural and Investment Funds (ESIF) that is worth about 90 billion euros annually. Beneficiaries receiving funding from ESIF are explicitly stimulated to increase their use of green public procurement (GPP) since 2014. In this article, we study whether and to what extent ESIF co-funding affects the uptake of GPP, making use of a rare dataset containing all public tender notices in the Czech Republic (2006-2019). We find that the availability of funding from ESIF has a small but significant and positive effect on the uptake of GPP in Czechia. A significant share of public procurement contracts appears to be relabelled ‘green’ to get eligible for funding. The effect on GPP appears to be driven by financial motives and not by ‘greener’ policy objectives. Finally, we document that the experience gained with GPP increases the later uptake of GPP by contracting authorities to a very limited extent.

Keywords: green public procurement, EU, co-funding, climate policy, Policy evaluation, sustainable development

Suggested Citation

Nicolas, Ruben and Titl, Vítězslav and Schotanus, Fredo, European Funds and Green Public Procurement. Available at SSRN: https://ssrn.com/abstract=4435468 or http://dx.doi.org/10.2139/ssrn.4435468

Ruben Nicolas (Contact Author)

Utrecht School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, +31 30 253 7373 3584 EC
Netherlands

Vítězslav Titl

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, +31 30 253 7373 3584 EC
Netherlands

HOME PAGE: http://www.titl.name

Charles University in Prague - Department of Economics ( email )

nam. Curieovych 7
Prague 1, 11640
Czech Republic

Fredo Schotanus

Utrecht University - School of Economics ( email )

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