Further extending the green purchasing requirements to local governments would enhance the effectiveness of the policy, in particular since a large share of public expenditure is invested locally. In expanding its green purchasing policy, the government should make sure that it targets goods and services with the highest potential environmental returns. This outcome was achieved with minor increases in public expenditure. Since the introduction of the green public procurement policy, the market shares of eco-friendly products widely used in the public administration have substantially increased (Figure 9). According to MOE’s estimates, the national government’s green purchasing policy resulted in a reduction of C02 emissions by 89 500 tonnes in 2006, which is equivalent to the amount of C02 emitted by a town of 42 000 inhabitants. The financial implications of Japan’s green public procurement policy and the overall costs to the Japanese economy of achieving such emission reductions should be assessed and compared with the costs of alternative policy measures.