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The relevance of Life Cycle Costing in Green Public Procurement

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  • Benedetta Nucci
  • Fabio Iraldo
  • Maria Rosa De Giacomo

Abstract

The aim of this paper is to discuss the relevance of Life Cycle Costing (LCC) in public procurement in the European context after the publication of the Directive 2014/24/EU. After a description of the concept, the dimensions and main features of LCC, the contents of the Directive are briefly presented, focusing on the requirements related to life cycle costing. The main issues related to the assessment of LCC are then discussed, such as discounting and uncertainty of the data, but the paper mostly concentrates on a key-aspect of the methodology: the monetization of environmental externalities, since the Directive emphasizes that this aspect shall also be included in the LCC calculation. Moreover, in order to explore the relevance of LCC in public procurement, a survey to 119 public administrations of different countries has been carried out. The main findings of the survey, presented in our paper, show that the Life Cycle Costing approach is implemented by only a small part of public administrations, in spite of the fact that Green Public Procurement, normally considered as a driver for LCC, is very diffused among the same administrations

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  • Benedetta Nucci & Fabio Iraldo & Maria Rosa De Giacomo, 2016. "The relevance of Life Cycle Costing in Green Public Procurement," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2016(1), pages 91-109.
    • Handle: RePEc:fan:efeefe:v:html10.3280/efe2016-001005
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    Cited by:

    1. Fabio Iraldo & Benedetta Nucci, 2016. "Proactive environmental management in hotels: What difference does it make?," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2016(2), pages 81-106.
    2. S. N. Nartey & H. M. van der Poll, 2021. "Innovative management accounting practices for sustainability of manufacturing small and medium enterprises," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 18008-18039, December.
    3. Varvara S. Orfanidou & Nikolaos P. Rachaniotis & Giannis T. Tsoulfas & Gregory P. Chondrokoukis, 2023. "Life Cycle Costing Implementation in Green Public Procurement: A Case Study from the Greek Public Sector," Sustainability, MDPI, vol. 15(3), pages 1-15, February.
    4. Julian Gaus & Sven Wehking & Andreas H. Glas & Michael Eßig, 2022. "Economic Sustainability by Using Life Cycle Cost Information in the Buying Center: Insights from the Public Sector," Sustainability, MDPI, vol. 14(3), pages 1-28, February.

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