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Public procurement centralization and energy expenditures: the case of Italian municipalities

Author

Listed:
  • Agnese Bafundi

    (Bank of Italy)

  • Antonio Sparacino

    (Bank of Italy)

Abstract

This paper analyses the relationship between the procurement methods adopted by Italian municipalities for the purchase of electricity and gas and the cost per capita incurred for these supplies. It empirically evaluates the effect of centralized purchasing for these expenditure categories. Using a unique dataset including payments made by Italian municipalities between 2019 and 2022, recorded on the Siope+ platform, we find that purchasing through Consip or regional procurement centres is associated with cost savings compared with direct procurement. Our analysis confirms the effectiveness of centralized procurement in the context of energy expenditures and highlights the potential efficiency gains associated with the ongoing increase in the rate of adoption of such systems.

Suggested Citation

  • Agnese Bafundi & Antonio Sparacino, 2023. "Public procurement centralization and energy expenditures: the case of Italian municipalities," Questioni di Economia e Finanza (Occasional Papers) 826, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_826_23
    as

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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2023-0826/QEF_826_23.pdf
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    References listed on IDEAS

    as
    1. Oriana Bandiera & Andrea Prat & Tommaso Valletti, 2009. "Active and Passive Waste in Government Spending: Evidence from a Policy Experiment," American Economic Review, American Economic Association, vol. 99(4), pages 1278-1308, September.
    2. Olga Chiappinelli, 2020. "Decentralization And Public Procurement Performance: New Evidence From Italy," Economic Inquiry, Western Economic Association International, vol. 58(2), pages 856-880, April.
    3. Decarolis, Francesco, 2018. "Procurement Centralization in the EU: the Case of Italy," CEPR Discussion Papers 12567, C.E.P.R. Discussion Papers.
    4. Gian Luigi Albano & Marco Sparro, 2010. "Flexible Strategies for Centralized Public Procurement," Review of Economics and Institutions, Università di Perugia, vol. 1(2).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    centralization; procurement; energy expenses; local public finance;
    All these keywords.

    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

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