The Role of Public Procurement for a Climate-neutral Way of Production and Living

In developed economies such as Austria, the public sector fulfils a number of tasks that clearly go beyond those of a mere night watchman state. A central goal of the study is to quantify the leverage effect of public procurement in achieving a climate-neutral way of production and living. By linking rich micro-data on public procurement and the WIFO input-output model BERIO, this leverage can be estimated at the sectoral level. As a result, those areas of public procurement can be identified where the links to greenhouse gas emissions are particularly strong, and possibly also where a particularly large number of employment relationships are affected. These results are to be seen as a central information basis when it comes to future reforms in public procurement strategies.