Abstract
Green public procurement (GPP) is a policy tool aiming to achieve environmental protection and resource reservation via public procurement. After decades of adaptation, what promotes and hinders its uptake in public contracting remains difficult to discern. This research explores factors that influence the adoption of green award criteria, covering features of procurement procedures, purchasers, tenderers, and the business sectors through empirical analysis of Probit regression combined with a fixed term method. The data is contract award notices (CAN) from 33 countries in Europe in 2018. Our findings suggest that framework agreements, the medical products sector, the health and social services sector, and the business services sector are negatively correlated with whether a contract is green. On the other hand, the contract value, Government Procurement Agreement (GPA)coverage, joint procurement, competitive dialogue, negotiation with competition (with a call for competition), restricted procedure, transport equipment sector, and food sector can positively correlate with green contracts, or these factors increase the possibility of a contract being green. Explicit explanations on these relations are provided. This research identifies factors relating with and influencing the application of green award criteria in public contracts, which would inform public sectors on efficient resources allocation in terms of increasing green public procurement performance.
Highlights
Government agencies around the world are increasingly advancing social and environmental policy goals by leveraging their own procurement dollars
The contract value, Government Procurement Agreement (GPA)coverage, joint procurement, competitive dialogue, negotiation with competition, restricted procedure, transport equipment sector, and food sector can positively correlate with green contracts, or these factors increase the possibility of a contract being green
Log of the contract value, GPA coverage, joint procurement, the construction service sector, the transport equipment sector, and the food sector can positively correlate with green contract, or these factors increase the possibility of a contract being green
Summary
Government agencies around the world are increasingly advancing social and environmental policy goals by leveraging their own procurement dollars. Their influence on the market can be substantial, given the overall size and volume of purchasing that moves through government procurement offices. “The EU’s Europe 2020 Strategy (Europe 2020) and Renewed Sustainable Development Strategy (Renewed SDS) identify green public procurement (GPP) as an essential market-based instrument for attaining the EU’s economic and environmental objectives” [3] Sustainable Public Procurement (SPP) is a similar concept referring to “a process by which public authorities seek to achieve the appropriate balance between the three pillars of sustainable development—economic, social and environmental—when procuring goods, services or works at all stages of the project” [4]. GPP is subsumed within SPP with a focus on an environmental dimension
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