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Extra info for The Environmental Performance of Public Procurement: Issues of Policy Coherence
10. Any social evaluation of the inventive activity induced by government procurement must also consider its opportunity costs. In the absence of the government policy, some inventive activity may well have occurred (possibly in a different direction). 11. ” As a result, procurement policy should focus solely on those product attributes that are of interest to both the government and the private sector. ” 31 Cost reductions GPP might encourage commercialisation and diffusion directly if it helps the private supplier lower its production costs and, thereby, leads to lower prices for private buyers.
This is crucial since individual governments typically make up only a small fraction of purchases in relevant markets. Conversely, GPP will be least promising when it focuses merely on switching government purchases from existing brown products to existing green products. Such switching will generate relatively minor environmental gains, given the relatively small purchasing power of most government entities (5% or less of many markets). Moreover, such switching will sometimes be offset, in whole or in part, by contrary changes in private purchasing.
However, formal eco-labels are not appropriate in all circumstances as they may not be suitable for products with a short market lifetime due to the time-consuming eco-label criteria development process. e. the top 10% - 30% of each product group in terms of environmental performance) (Allison and Carter 2000). Because of these factors and industry resistance to subject itself to third-party evaluation, environmental claims by manufacturers or retailers are frequently made based on self-declarations (or Type II eco-labels - ISO 14021).
The Environmental Performance of Public Procurement: Issues of Policy Coherence by Organisation for Economic Co-Operation and Development, Visit Amazon's Nick Johnstone Page, search results, Learn about Author Central, Nick Johnstone,