Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/314735 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 11696
Publisher: 
CESifo GmbH, Munich
Abstract: 
Governments support the green transition through green public procurement. Using US data, this paper provides the first empirical analysis of the causal effects of green contracts on corporate greenhouse gas emissions and economic performance. We focus on an affirmative program for sustainable products, which represents one-sixth of the total federal procurement budget, and publicly traded firms, which account for one-third of total US emissions. Our results show that securing green contracts reduces emissions relative to firm size and increases productivity. We find no evidence that the program selects greener firms, nor that green public procurement sales crowd out private sales.
Subjects: 
public procurement
environmental policy
firm performance
greenhouse gas emissions
R&D
recycled materials
staggered difference-in-difference
JEL: 
D22
D44
H32
H57
Q53
Q54
Q58
Document Type: 
Working Paper
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