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Market response to environmental policy via public procurement: An empirical analysis of bids and prices

  • 0The Department of Economics at Umeå School of Business, Economics & Statistics at Umeå University, 901 87, Umeå, Sweden.
Journal of Environmental Management +

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June 28, 2024

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June 28, 2024

View abstract on PubMed

Summary

This summary is machine-generated.

Green Public Procurement (GPP) did not significantly influence bids in Swedish cleaning services. Results show decreased competition and increased bids over time, possibly due to regulatory complexity.

Area Of Science

  • Environmental Policy
  • Public Procurement
  • Market Competition

Background

  • Green Public Procurement (GPP) aims to integrate environmental considerations into government purchasing.
  • Assessing the real-world impact of GPP on market dynamics is crucial for policy effectiveness.
  • Swedish internal cleaning service procurements provide a case study for GPP's effects.

Purpose Of The Study

  • To investigate the impact of GPP on competition, bid prices, and winning bids.
  • To analyze changes in procurement outcomes across different regulatory periods with evolving GPP ambitions.
  • To determine if GPP serves as an effective environmental policy instrument.

Main Methods

  • Analysis of detailed data from Swedish internal cleaning service procurements.
  • Comparative study across two distinct regulation periods with varying GPP emphasis.
  • Statistical examination of bid behavior, competition levels, and award outcomes.

Main Results

  • Environmental considerations in GPP did not demonstrably influence bid prices as anticipated.
  • A trend of decreasing competition and increasing bid prices was observed over time.
  • Regulatory changes and increased complexity in GPP appear to correlate with these market shifts.

Conclusions

  • GPP may not be effectively driving environmental goals through market mechanisms in this context.
  • The observed trends suggest potential unintended consequences of GPP implementation on market competition and costs.
  • Further research is needed to refine GPP strategies for enhanced environmental and economic outcomes.

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