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Public Procurement, Local Labor Markets and Green Technological Change: Evidence from US Commuting Zones

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  • Orsatti, Gianluca
  • Perruchas, François
  • Consoli, Davide
  • Quatraro, Francesco

    (University of Turin)

Abstract

The present paper investigates whether and through which channels green public procurement (GPP) stimulates local environmental innovation capacity. To this end, we use detailed data sources on green patents and procurement expenditure at the level of US Commuting Zones for the period 2000-2011. We also check for the moderating effects of local labor market composition in the relation between green public procurement and green innovation capacity. Lastly, we exploit the richness of patent information to test for differential effects of green public procurement on different classes of green technologies. The main finding is that GPP is an important driver in explaining the growth of local green-tech stock. The positive effect of GPP is mainly driven by expenditures for procured green services and is magnified by the local presence of high shares of abstract- intensive occupations. When separately considering diverse kinds of green technologies, we do find evidence of a more pronounced effect of GPP on the growth of local knowledge stocks of mitigation technologies.

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  • Orsatti, Gianluca & Perruchas, François & Consoli, Davide & Quatraro, Francesco, 2018. "Public Procurement, Local Labor Markets and Green Technological Change: Evidence from US Commuting Zones," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201803, University of Turin.
    • Handle: RePEc:uto:labeco:201803
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    2. Krieger, Bastian & Zipperer, Vera, 2022. "Does green public procurement trigger environmental innovations?," Research Policy, Elsevier, vol. 51(6).
    3. Gianluca Orsatti, 2024. "Government R&D and green technology spillovers: the Chernobyl disaster as a natural experiment," The Journal of Technology Transfer, Springer, vol. 49(2), pages 581-608, April.
    4. Shadrina, Elena V. & Vinogradov, Dmitri V. & Kashin, Dmitry V., 2022. "Implicit incentives in green public procurement: Good intentions versus rigid regulations," Ecological Economics, Elsevier, vol. 198(C).
    5. Fusillo, Fabrizio & Orsatti, Gianluca & Scandura, Alessandra, 2024. "Public Green Demand and Green Innovation: Evidence from US Firms," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202407, University of Turin.
    6. Gianluca Orsatti & Francesco Quatraro & Alessandra Scandura, 2020. "Regional differences in the generation of green technologies: the role of local recombinant capabilities and academic inventors," Carlo Alberto Notebooks 617, Collegio Carlo Alberto.
    7. Liao, Zhongju & Xu, Lijun & Zhang, Mengnan, 2024. "Government green procurement, technology mergers and acquisitions, and semiconductor firms’ environmental innovation: The moderating effect of executive compensation incentives," International Journal of Production Economics, Elsevier, vol. 273(C).
    8. Sebastian Ohlig & Linus Schmidt & Chiara Lichter & Moritz Harting & Lena Herrmann & Bastian Krieger, 2022. "Umweltfreundliche Öffentliche Beschaffung fördern mit People-Public-Private-Partnerships [Promoting Green Public Procurement with People-Public-Private-Partnerships]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(12), pages 971-975, December.

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