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Greening the Budget

Budgetary Policies for Environmental Improvement

Edited by J. Peter Clinch, Kai Schlegelmilch, Rolf-Ulrich Sprenger and Ursula Triebswetter

Greening the Budget regards the fundamental cause of environmental degradation as government and market failure and proposes the use of budgets as an instrument of environmental policy to rectify this problem. The book focuses on the elements of the public budget which currently affect the environment and explores the scope for greening both revenue and expenditure through specific measures.
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Chapter 17: Cooperative procurement: market transformation for energy-efficient products

Budgetary Policies for Environmental Improvement

Katrin Ostertag and Carsten Dreher


Katrin Ostertag and Carsten Dreher INTRODUCTION This chapter lays out the concept of cooperative procurement as a policy instrument to transform the market, stimulate innovation, and enhance environmental performance. In section 1, the different steps of a cooperative procurement process are explained based on the experience of past procurement projects. Sections 2 and 3 highlight some specific elements, which distinguish cooperative procurement from conventional government procurement. In section 4, we then critically assess the concept of this instrument against the background of the theory of innovation and diffusion. Qualitative and quantitative hypotheses derived from these theories are contrasted with empirical evidence on the effectiveness of this instrument (section 5). This comparison leads us to refined recommendations for practical implementation and, finally, raises some questions for further research. 1. AIMS AND KEY ELEMENTS OF COOPERATIVE PROCUREMENT Cooperative procurement is a variation of public purchasing which is used as an instrument to transform the market and stimulate innovation. It has mostly been used to promote the development and the diffusion of more energyefficient products. Hence this chapter will refer to energy-efficiency policies rather than to environmental policies in general. However, this policy instrument can be easily transferred to and indeed also touches on enhancing environmental product performance in general. The aim of cooperative procurement is two-fold (see Figure 17.1): increasing the market share of best available technologies in terms of energy efficiency 314 Clinch 05 chap 16 15/11/01 1:29 pm Page 315 Cooperative procurement 315 (market procurement); and bringing new more...

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