The Impact of Sustainable Procurement on Environment: A Three Country Data Analysis

Abstract

This study investigates the impacts and inter-relations between sustainable procurement and environment empirically by utilizing panel data. Past studies, particularly on the econometric specifications, are inserted. Carbon emission is considered as an environmental factor and government expenditure as sustainability indicator is analyzed. The outcome indicates that sustainable procurement has a negative impact on carbon emission as well as having a poor relationship. Additionally, other explanatory variables show negative effect and relationship. Utilizing the Fixed and Random effects approach of estimating, the results add up to the knowledge on the impact of sustainable procurement on environment to some extent and confirming the indirect impacts and relationships. The Hausman test was affected to ascertain the suitable method for estimation. The final result shows the indirect relationship and impact of sustainable procurement, including all other variables employed. The Random effects method was set to be the approachable method of evaluation for this examination.