Institutional factors affect sustainability of public procurement of construction works in Russia

Abstract

Public procurement entities in Russia do not have to include environmental criteria in procurement, yet the strategic priority of the Russian government implicitly calls for it. We analyse such institutional factors affecting green public procurement, as the stringency of the law and the level organisation takes in the federal–municipal hierarchy. Our sample covers all procedures in public procurement of construction works in RF in 2019. International environmental standards are widely used in construction, suggesting procurement entities might be informed about existing environmental criteria. The data revealing green procedures is rather rare, and the strictness of the law reduces the probability of including environmental criteria in procurement. Organisations at the federal and regional levels are more likely to use environmental criteria in procurement than those at the municipal level. Corporations governed by the more fl exible procurement law are more likely to use environmental criteria. With respect to energy effi ciency, where clear guidance exists, the difference diminishes or reverts. Results indicate fl exible legislation and clear guidance may reduce caution and through that contribute to wider adoption of green public procurement in Russia.