Optimal discounts in green public procurement. (English) Zbl 1541.91107
Summary: We provide an auction-theoretical analysis of green public procurement (GPP) as a preferential program aimed at stimulating investment in green technologies. We find that GPP incentivizes more competitive firms to invest. We also show that GPP can be an optimal mechanism for a procurer who cares about minimizing the purchasing price while triggering green investment.
MSC:
| 91B26 | Auctions, bargaining, bidding and selling, and other market models |
| 91B76 | Environmental economics (natural resource models, harvesting, pollution, etc.) |
| 91B18 | Public goods |
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