Public procurement centralization and energy expenditures: the case of Italian municipalities

Agnese Bafundi () and Antonio Sparacino ()
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Agnese Bafundi: Bank of Italy
Antonio Sparacino: Bank of Italy

No 826, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: This paper analyses the relationship between the procurement methods adopted by Italian municipalities for the purchase of electricity and gas and the cost per capita incurred for these supplies. It empirically evaluates the effect of centralized purchasing for these expenditure categories. Using a unique dataset including payments made by Italian municipalities between 2019 and 2022, recorded on the Siope+ platform, we find that purchasing through Consip or regional procurement centres is associated with cost savings compared with direct procurement. Our analysis confirms the effectiveness of centralized procurement in the context of energy expenditures and highlights the potential efficiency gains associated with the ongoing increase in the rate of adoption of such systems.

Keywords: centralization; procurement; energy expenses; local public finance (search for similar items in EconPapers)
JEL-codes: H57 H76 K23 (search for similar items in EconPapers)
Date: 2023-12
New Economics Papers: this item is included in nep-ene, nep-reg and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_826_23

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