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How Green Public Procurement can drive conversion of farmland: An empirical analysis of an organic food policy

Hanna Lindström, Sofia Lundberg and Per-Olov Marklund

Ecological Economics, 2020, vol. 172, issue C

Abstract: This paper studies a Green Public Procurement (GPP) policy decided by the Swedish government in 2006, stating objectives related to organic farming. The policy aims to increase the public sector's organic food purchases, in order to incentivise Swedish farmers to convert to organic practices, thereby contributing to national environmental quality objectives. We analyse the effect of organic food procurement on organic agricultural land, using panel data from 2003 to 2016 including information on municipalities' organic food purchases, land use, and direct subsidies aimed at organic production. Based on different specifications and mainly FGLS estimations, we conclude that the 2006 organic food policy is associated with a significant positive impact on organic agricultural land. A significant effect of direct agricultural policy in the form of subsidies is also found.

Keywords: Agricultural policy; Environmental policy analysis; Organic food policy; Organic farming; Green public procurement (search for similar items in EconPapers)
JEL-codes: D44 H57 Q18 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.ecolecon.2020.106622

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