In recent years, a significant number of OECD member countries have introduced initiatives to reduce the environmentally damaging effects of public procurement. Many countries have introduced "greener public purchasing" (GPP) policies in order to increase the recycled content of products or...

We consider a model of polluting firms subject to tax on emissions, monitoring, and penalties in case of underreporting and which face a choice between a more expensive clean and a less expensive dirty technology. Moreover, emissions are subject to random events.We show that the optimal...