Abstract
Developing countries need a large number of social infrastructure projects (e.g. schools, medical care, nursing homes). But the government's finance to invest in these projects is limited. By using the public-private partnership (PPP) mode to attract social capital to invest in PPP projects, it can relieve the financial pressure and improve the operation efficiency. The cooperation between government and consumer can ensure the sustainable development of the project operation. A system dynamics model of tripartite evolutionary game is developed to analyze the interaction of participant's strategies and simulate the corresponding evolution process. We employ the scenario analysis method to investigate the impact of the key parameters in relation with PPP projects based on realistic scenario assumptions. The results reveal the effect of some policies including reverse effect, blocking effect and over-reliance effect. Specifically, the results show that high penalty can prevent social capital from providing low-quality services, the low cost of government regulation can promote social capital to provide high-quality services, compensation to consumer can increase the enthusiasm of consumer participating in supervision, appropriate difference between price and cost of high-quality service as social capital's profit can encourage social capital to provide high-quality service. These policy suggestions will contribute to the sustainable development of social infrastructures in PPP mode.
Highlights
The public infrastructure is a critical component of national development including economy, social welfare and quality of life
The aim of government’s governance is to increase the willingness of consumers participating supervision and evaluation through government’s policy, which ensuring that social capital provides high-quality services. 3.This paper studies the impact of key parameters related to the private partnership (PPP) project
In order to encourage consumer to participate in supervision and promote social capital to provide high-quality services, we study the synergistic impact of social capital, government and consumer
Summary
The public infrastructure is a critical component of national development including economy, social welfare and quality of life. Due to information asymmetry and the dynamic changes during the operating process of providing public services by social capital and regulating by government [31, 32], there is always a game among government, social capital and consumer because of various interest objectives pursued through cooperation. Based on social infrastructure in PPP mode, a system dynamics model of tripartite evolutionary game is applied to analyze the interaction of government, social capital and consumer. 1.This paper researches the participation of specific consumers group in public governance based on social infrastructure in PPP mode. As social infrastructure PPP projects, the supervision and management responsibilities of the government are usually emphasized [33], but there are few studies about participation of the consumer. The aim of government’s governance is to increase the willingness of consumers participating supervision and evaluation through government’s policy, which ensuring that social capital provides high-quality services.
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