It is top-down governance: examining environmental public-private partnerships in China

Abstract

ABSTRACT Public-private partnerships have been touted as an important governance tool. To what extent efficiency gains are internalized into the governance scheme remains open. This study proposes a nested model suggesting that the development of PPPs is enabled and constrained by project features, local contexts and (top-down) governance scheme. Based on 325 environmental PPP projects in China, the multilevel models suggest when government payment or subsidy were involved, the development of PPPs was not driven by efficiency gains but empowered by top-down governance. While efficiency gains mattered, user fees also prevailed more when certain governing arrangements were place. PPPs in China serve and are also constrained by top-down governance, raising potential concerns on efficiency and public accountability.