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Does green public procurement trigger environmental innovations?

Bastian Krieger and Vera Zipperer

Research Policy, 2022, vol. 51, issue 6

Abstract: Green public procurement has gained high political priority and is argued to be an effective demand-side policy to trigger environmental innovations. However, the empirical evidence on its innovation impact is limited. We construct a novel firm-level dataset to investigate the effect of winning public procurement tenders with additional environmental award criteria on firms’ introduction of environmental innovations. Employing cross-sectional difference-in-differences methods, we find that winning public procurement awards with environmental selection criteria increases a firm's probability of introducing more environmentally friendly products on average by 20 percentage points. We show that this effect is driven by small and medium-sized firms and is not statistically significant for larger firms. Furthremore, there is no statistically significant effect on the introduction of more environmentally friendly processes.

Keywords: Green public procurement; Environmental innovation; Demand pull (search for similar items in EconPapers)
JEL-codes: H57 O38 Q55 Q58 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:51:y:2022:i:6:s0048733322000440

DOI: 10.1016/j.respol.2022.104516

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Research Policy is currently edited by M. Bell, B. Martin, W.E. Steinmueller, A. Arora, M. Callon, M. Kenney, S. Kuhlmann, Keun Lee and F. Murray

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