Effects of public procurement on corporate total-factor carbon productivity: evidence from China

Using balanced panel data for listed Chinese industrial firms from 2016 to 2021, this study examines the effect of public procurement (PP) on corporate total-factor carbon productivity (CTFCP) and the related mechanisms. The results show that (1) there is a positive correlation between PP and CTFCP. (2) PP exerts a more pronounced incentivizing effect on CTFCP for state-owned enterprises, larger corporations, and those with weaker financing constraints. (3) We decompose CTFCP into technological progress (TECH), pure technical efficiency (PTE), and scale efficiency (SE) and find that PP improves TECH and PTE, and the effect differs according to firm ownership, scale, and financing constraints. (4) PP promotes CTFCP through labor productivity (LP), capital productivity (CP), and corporate green innovation (CGI) while the mediating role of environmental productivity (EP) is not significant. This study contributes to theoretical discourse on PP's influence on CTFCP and has practical implications for PP agencies and enterprises.