Green Is Less Greedy

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Green public procurement (GPP) in Bulgaria constituted approximately 10% to 20% of total public procurement spending from 2011 to 2019, indicating a significant presence despite Bulgaria being a sustainability laggard within the EU [2][14] - GPP is associated with improved competition, as it increases the entry of new firms into the market by 3 to 7 percentage points, while also reducing the likelihood of single bidders by 0.6 to 1.5 percentage points, thus lowering corruption risks [2][14] - GPP contracts are awarded to firms with 14% higher labor productivity, and this effect is even more pronounced in contracts with lower corruption risks, where productivity can be 19% higher [2][14] Summary by Sections Introduction - Public procurement accounts for about 12% of global GDP, with increasing emphasis on sustainability and environmental impact in recent years [8] - GPP is increasingly recognized as a policy tool, yet evidence on its interaction with traditional procurement objectives is limited [9] Methodology - The study utilizes a comprehensive dataset of 148,637 contracts from Bulgaria's national e-procurement portals, covering the period from 2011 to 2019 [42] - A keyword-based matching algorithm is employed to identify GPP contracts, resulting in approximately 6,500 GPP tenders and 11,000 green contracts [47] Results - GPP spending as a share of total public procurement fluctuated between 8% and 26% from 2011 to 2019, with a notable decline after 2016 [78] - The highest GPP spending was observed in sectors such as sewage and environmental services, construction, and water purification [83] - GPP enhances competition by encouraging new market entrants and reducing the market share of winning suppliers [90]