The overall objective of this study is to present the Republic of Korea’s green public procurement (GPP) impact measurement methodology, to compare it to others used by other public authorities internationally, and to pilot a macro-economic analysis of the economic and environmental impacts of the Republic of Korea’s GPP policy in order to improve the approaches used by the government to estimate GPP impacts and benefits. Also, it provides guidance to governments reforming their GPP policies and measurement approaches.
The Republic of Korea’s GPP policy (the Act on Promotion of Purchase of Green Products, 2005) is globally recognised as a best practice example. In line with early GPP policies adopted in Europe and North America, it has a strong focus on supporting SCP by developing the market for eco-labelled products through public demand. The report illustrates the results of GPP impact measurement in the Republic of Korea and compares Korea's measurement approach to that of Japan, the state of Massachusetts, the Netherlands, and the federal state of Berlin. The study also analyses the macroeconomic impact of GPP in the Republic of Korea using a computable general equilibrium (CGE) model, where a greenhouse gas (GHG) reduction scenario with the introduction of a carbon tax is compared to three types of green product promotion policy scenarios during the period of 2015 to 2030. Finally, the study presents two different GPP impact measurement methodologies; a bottom-up approach used by KEITI, and a top-down approach using the CGE model. While KEITI’s approach is based on the actual purchase data of each public institution and its benefits compared to non-green products, the CGE model is used to model macro-economic impacts.