The general objective of XPRESS project (full title: Support for Public Procurements to facilitate the collaboration between SMEs and public sector for the development and adoption in renewables in regions) is to facilitate the introduction of innovative Renewable Energy Supply (RES) technologies and increase the share of renewable energy in the final energy consumption..
DIW’s Berlin part (conducted with partners) focuses on improving the application of Green Public Procurement (GPP) to innovative RES technologies. Specifically, we will analyze the barriers to investments in innovations in RES, in particular financial and funding barriers. We examine the importance of GPP as demand pull factor for green innovations in and by SMEs, and the role of GPP for SME finance. DIW and partners aim at a data-driven assessment of the impact of RES demand (GPP) and distinct GPP-strategies on innovative firms' financial constraints and funding gaps. We will also employ a propensity score matching approach (control sample without GPP) and DiD to estimate the causal impact of GPP/distinct GPP strategies on collateral value, loan terms and interest rates. Particular relevance will be given to possible scale effects of investments. In addition, we will assess how LCA of RES-technologies affect firms financing conditions.