Public Infrastructure Investment Research Articles

Performance evaluation of agricultural commodity logistics from a sustainability perspective

Brazil is an important player in the international agricultural market and productivity and production indexes have been growing significantly. However, logistics costs cut into these gains, specially transportation and storage costs, affecting exportation. The lack of investments in logistics infrastructure has limited its growth potential. Assuming that the use of transportation costs to measure efficiency does not fully explain the advantages of exportation routes, this study aims to evaluate the performance of Mato Grosso soybean flow routes intended for exportation. The performance assessment considers the economic, social, and environmental dimensions supported by the concept of sustainability for unimodal and multimodal routes. Causal loops were created for the three dimensions evaluated resulting in the inputs used for the data envelopment analysis (DEA). Multiple criteria related to economic, environmental, and social performance were considered simultaneously. In addition, the logistics routes were analyzed statistically through principal component analysis (PCA) and grouped with the support of clustering analysis. The results showed that the use of intermodality affects gains in the three analyzed dimensions, and that the routes directed to the new Brazilian ports were promising but projects in transshipment terminals are necessary. These findings can support strategic decision-making regarding the choice of routes, improving the exportation process, as well as directing public investment in logistics infrastructure.

Improving inland freight logistic efficiencies: Is there any ideal modal spilt?

Freight and logistics activities are the pillars of modern-day business activities. This study aims to identify the ideal modal split for freight transportation and improve the freight logistic efficiencies in a developing country (Pakistan). This study contributes to the literature by applying a linear programming approach to freight transportation of an entire developing country and identifies an ideal modal split between railways and trucks. In addition, the study also quantifies the inefficiencies of the railways' sector. The results indicate that Pakistan's freight must be mainly transported by railways (about 97 percent of total freight) and partially by trucks (about 3 percent of total freight) to be cost-efficient. It was also found that Pakistan railways can transport its current freight with 22 percent of its current fuel usage and save about 60 percent of the total time it currently takes to transport its freight. The study is helpful for Pakistani policymakers and researchers interested in linear programming applications in logistics. The study is equally beneficial for policymakers in other developing countries to quantify the inefficiencies in their inland freight transportations and identify the ideal modal split that could help them prioritize the public sector infrastructure investment.

Mobilising Rents: Natural Gas Production Networks and the Landlord State in Peru and Bolivia

AbstractThe ongoing choreography of extractive industries asks for a deeper appraisal about the processes and scales underpinning resource extraction. This paper unpacks how the assembly between natural gas production networks, extractivist states and local politics is anchored in resource peripheries in Peru and Bolivia through contingent schemes of value distribution. From a critical production network approach, the paper examines the transformation of resource peripheries through the transfer of natural gas rents to sub‐national governments and, more specifically, through investments in public infrastructure. Such investments embed natural gas production networks to local politics through three processes: providing an image of modernisation and progress; coopting local elites through corruption; and mobilising local labour. In conclusion, the articulation between production networks and extractivist states involves an entangled scheme of rent distribution that flows at very local levels and consolidates multi‐scalar arrangements for resource extraction.

THE IMPACTS OF INSTITUTIONAL CAPACITY, INFRASTRUCTURE GOVERNANCE AND EQUITY ON STATE-AND-NATION-BUILDING PROCESSES IN ETHIOPIA

The issue of regional inequity/disparity in infrastructure development has been debated for an effective state-and-nation-building processes in the context of Ethiopia. Infrastructure equity process necessitates changes in policies to accommodate new evolving trends and factors. The purpose of the article is to identify the impacts of infrastructure inequity on nation-building process including the interrelationships of these constructs/variables. It supports to know the level of (in) equity of public infrastructure growths and its crucial factors in Ethiopia. By analyzing the data (both quantitative and qualitative) gathered, the paper displays that the equity of public infrastructure investments is falling/disrupting and is negatively impacting the nation-building processes in Ethiopia. This is mainly due to the coordination failure of the government. Thus, a unit percentage change of infrastructure equity, for example, would lead to a 59.2% increment in the nation-building process of Ethiopia taking the remaining effect as a constant.

Splintering Urbanism and Climate Breakdown

ABSTRACT On the anniversary of the publication of Splintering Urbanism, climate breakdown heralds a new era in public investment in infrastructure. However, current proposals for infrastructure overlook two decades of work in infrastructure studies. For example, both the Green New Deal advanced by activists in the United States and the European Green Deal, proposed by the European Commission, establish a dual logic between investments in centralized systems and off-grid systems that reinforce, rather than challenge, the infrastructure models critiqued in Splintering Urbanism. The lessons of Splintering Urbanism debates, such as the rise of post-networked conditions of living in dialogue with everyday practices of living with and against infrastructures, are still missing from the policies that will likely shape urban futures.

Consumption tax and productive government expenditure in DSGE model

Our article presents a dynamic stochastic general equilibrium (DSGE) model to derive effects of a consumption tax rate increase. In the DSGE model, money and inflation are examined to elucidate the transitional path of policy. Results of a consumption tax rate increase are intuitive: GDP declines because of lower aggregate consumption. With a consumption tax rate increase, we consider the productive government expenditure model. In the standard DSGE model, the production function comprises inputs of capital stock and labor. Policy can change the capital stock and labor inputs to alter the production level. However, the production level can be changed by other policies. For instance, increased public investment in infrastructure by government can change the production level. After setting the DSGE model with productive government expenditure, we attempt derivation of a result. We consider the case in which additional productive government expenditure is financed by a consumption tax. In this case, compared with the case of a consumption tax increase without productive government expenditure, GDP increases even if the consumption tax rate is raised. An increase in productive government expenditure increases marginal labor productivity, thereby raising the wage rate. Consequently, by virtue of a raised wage rate, consumption can increase even if the consumption tax negatively affects aggregate consumption.

МІЖНАРОДНІ СТРАТЕГІЇ ЕКОНОМІЧНОГО РОЗВИТКУ

Ensuring the process of economic development is extremely complex and it is carried out under the influence of a whole range of different contradictory and sometimes mutually exclusive factors. Experience shows that the idea of the historical conditionality of development, progress, social evolution finds its practical application not directly to the individual socio-economic system, but as a general direction, the vector of movement of world civilization. The purpose of the study is to conduct a comprehensive study of growth strategies of "breakthrough" economies and developed countries to identify features of their development.The methodological basis of the study was the works of domestic and foreign scientists, which reveal the essence of the strategy of economic development of different countries. The comparative analysis, historical analysis, and statistical method were used in the study. Results of the study.In the study, growth strategies of "breakthrough" economies and developed countrieswere analyzed and systematized.Characteristic features of strategies for the development of "breakthrough" economies and developed countries were also highlighted.Among the common features of economic development strategies of countries with breakthrough economies are the following: withdrawal of maximum benefits from the openness of the world economy; support for macroeconomic stability; support for high growth rates of savings and investment, public investment in infrastructure; giving markets the opportunity to independently manage the allocation of resources; the presence of an ideological and qualified government. The results obtained have significant practical value and can be used to improve economic development policies and reduce inequalities between countries in the world.The authors conclude thatthe pace of economic growth of the country is most often determined by the pace of its technological progress. Strengthening productive capacity can help developing countries and the least developed countries to achieve sustainable economic development, reduce poverty, reduce inequality, increase exports.

The third way of inclusive growth in China

In much of the 20th century, the welfare state was regarded as the fundamental means for Western countries to embrace economic liberalization through domestic social contracts, whereas the developmental state was credited for East Asian economies’ growth with equality. However, economic globalization and technological changes have posed serious challenges for both models with respect to containing increasing inequality and achieving inclusive growth. China’s performance in inclusive growth has demonstrated distinct features that differ from the approaches of Western welfare states and East Asian developmental states. China has relied less on conventional means of redistribution, such as taxes and transfers. Instead, it has combined growth-oriented industrial policies, public infrastructure investment, and state-mediated poverty alleviation programs. China’s development strategy reflects a “third way” perspective on inclusive growth that might be instructive for latecomer economies.

Public infrastructure investment and private investment in East African community: crowding-in or crowding-out

Public infrastructure investment and private investment in East African community: crowding-in or crowding-out

Public Infrastructure Investment and Private Investment in East African Community: Crowding-in or Crowding-out

Public Infrastructure Investment and Private Investment in East African Community: Crowding-in or Crowding-out

BINOMIAL REAL OPTIONS MODEL WITH DYNAMIC PROGRAMMING APPLIED TO THE EVALUATION OF RAILWAY INFRASTRUCTURE PROJECTS IN BRAZIL

This paper presents a methodology for evaluating public investments in railway infrastructure based on the theory of real options, using the binomial model combined with dynamic programming procedures and Monte Carlo simulation. This modelling was proposed in order to overcome the inefficiencies in the evaluation process of projects conducted by the Brazilian public agencies, as pointed out by World Bank studies. According to these studies, there is evidence that the various managerial and regulatory instances of the Brazilian government have been limited to applying classical analysis techniques, considering only the discounted cash flow indicators, instead of paying more attention to risk issues, as well as to the possibilities of managerial flexibility. The proposed analytical procedures are recommended to support infrastructure investment decisions that can be transferred to the private sector or to guide the formation of public-private partnerships (PPPs).

Greening as a trend of becoming a smart econom

The article substantiates the need to understand the essence of the green economy as an ecosystem in which the processes of economic, social, ecological, and political development are balanced. This is manifested in the implementation of important global events, political decisions at various levels, and the strengthening of analytical activities. The green economy includes three main concepts: low-carbon, resource-saving and socially inclusive development. In a green economy, employment and income growth is supported by public and private investment in infrastructure and assets that reduce carbon emissions and pollution, improve energy and resource efficiency, and prevent biodiversity loss. Various indices and indicators for measuring the development of the green economy are distributed in international analytics. The main indexes of measuring the greening of the economy include social parameters, social inclusiveness and greening. The Green Growth Index measures the performance of governments in achieving sustainable development goals (efficient use of resources, protection of natural resources, opportunities for implementing environmental initiatives, and social integration). The UNEP Green Economy Progress Index (GEP) does not remain unchanged and is constantly being improved and filled with new content to measure progress in achieving an inclusive green economy. The Green Economy Progress Index is a key tool for policymakers, analysts and other stakeholders in understanding the progress of the green economy.

Новые инструменты привлечения инфраструктурных инвестиций в экономику региона

The article deals with modern investment instruments for the implementation of public and private infrastructure investments. In recent years, the creation of new and improvement of existing infrastructure investment instruments has been intensified. The development of the system of tools is associated with the complication of the economic and political environment, as well as with the increasing of the needs of the regions in the creation of modern infrastructure facilities. The purpose of the research is seen in the consideration and analysis of the regions practice of using infrastructure investment instruments for the identification the problems and further development the instruments of the regional investment policy. The review of the legislative aspects of the using of these tools, conducted by the authors, as well as the analysis of the factual data about the present and future of the infrastructure investment market in the regions, in particular, in the Khabarovsk Territory, are of scientific and practical interest. The relationship between the concepts of the infrastructure project, infrastructure investments, infrastructure menu and regional investment standard was established. The results of the research described in the article are interesting from the perspective of practical use by the government bodies in the realization of the investment policy of the region, as well as by researchers of the problems of the investment sphere. The authors' results verify the trends of recent years - despite the intensified activity of the federal center, which offers a variety of tools for infrastructure investment, the regions do not yet fully use them for the implementation of infrastructure projects.

Methodologies of international financial institutions for assessing the effectiveness of public investment management

The article analyzes the approaches of international organizations to assess the effectiveness of public investment management. The article considers the assessment and ratings of international organizations in Kazakhstan within the framework of public spending and the level of basic infrastructure. The article highlights the fact that a reliable management system for the entire chain of investment projects can increase the efficiency of public investment. It has been determined that the effectiveness of infrastructure investments and public administration in this area can be assessed in various ways. The study allows us to state that international organizations have developed and put into practice a number of new methods based on assessing the life cycle of a project, integrating infrastructure investments into the budget cycle, and forming national indices (ratings) of public investment efficiency. According to the authors, some of these methods are relevant for assessing the effectiveness of public infrastructure investments in the Republic of Kazakhstan.

A Study on the Method the Benefits of Agricultural Infrastructure Projects

The agricultural infrastructure projects exceeding a certain amount should be by law conducted a preliminary feasibility study by the Public and Private Infrastructure Investment Management Center (PIMAC) of Korea Development Institute (KDI). The results of the study are crucial for the projects to be funded and implemented. However, there have been some issues for the method of calculating the economic benefits. The main issues contain which benefits are included, how to evaluate the marginal effects of the projects, and which concept is applied among gross income, income and profit. Thus, this paper is designed to suggest a common method for calculating the economic benefit of agricultural infrastructure projects.

The Impact of Deforestation, Urbanization, and Changing Land Use Patterns on the Ecology of Mosquito and Tick-Borne Diseases in Central America.

Simple SummaryCentral America is a region that possesses distinct ecological and socioeconomic characteristics, making it increasingly vulnerable to vector-borne diseases. The emergence and resurgence of these diseases has been linked to environmental changes driven by human activities, particularly land use changes associated with deforestation, forest degradation, and urbanization. However, the effects of these environmental modifications on the transmission dynamics and the increase of infection risks are not well understood in Central America where information is limited and scattered. In this article, we review and analyze the current knowledge and potential impacts of deforestation and urbanization on the risk and transmission dynamics of the most relevant mosquito-borne and tick-borne diseases in Central America. Disease events, such as the recent Zika and dengue epidemics, and the uneven progress towards regional malaria elimination highlight the need to increase awareness regarding the complex ecological interactions and environmental changes taking place in this region and how this information could be used to improve prevention and control strategies.Central America is a unique geographical region that connects North and South America, enclosed by the Caribbean Sea to the East, and the Pacific Ocean to the West. This region, encompassing Belize, Costa Rica, Guatemala, El Salvador, Honduras, Panama, and Nicaragua, is highly vulnerable to the emergence or resurgence of mosquito-borne and tick-borne diseases due to a combination of key ecological and socioeconomic determinants acting together, often in a synergistic fashion. Of particular interest are the effects of land use changes, such as deforestation-driven urbanization and forest degradation, on the incidence and prevalence of these diseases, which are not well understood. In recent years, parts of Central America have experienced social and economic improvements; however, the region still faces major challenges in developing effective strategies and significant investments in public health infrastructure to prevent and control these diseases. In this article, we review the current knowledge and potential impacts of deforestation, urbanization, and other land use changes on mosquito-borne and tick-borne disease transmission in Central America and how these anthropogenic drivers could affect the risk for disease emergence and resurgence in the region. These issues are addressed in the context of other interconnected environmental and social challenges.

Institutional factors of transition to "green" economy

The goal is to reveal the essence of the "green" economy, mechanisms and factors that determine the process of transition to environmentally oriented model, a new vector of sustainable development. Methods - analysis, comparison, systematization, study and generalization of information. Results - domestic and foreign research works on institutional factors contributing to the creation of ecosystems have been studied. The authors proposed the formulation of the most accurate and capacious modern definition of the mechanism for production of environmentally friendly products. The article is devoted to the study of the main aspects of the "green" economy, according to which the activities of enterprises should be aimed at the rational use of natural resources and preservation of natural diversity. The possibility of its relationship with the specifics of the activities of economic entities of the agro-industrial complex has been revealed. Attention is focused on the reasons for their low innovative activity in agricultural sector. An economic analysis of the indicators of agricultural entities, including those with State participation, was done in reorientation aimed to reduce environmental risks. Conclusions – the following actions are needed: transformations from the extensive export-raw-material type of economic development to the environmentally balanced one, structural and technological changes, sustainable pricing, elimination of ineffective subsidies, public procurement, increased public investment in infrastructure, the use of preferential lending to agricultural enterprises, regardless of ownership, which effectively implement environmental protection, introduction of special taxation of environmentally harmful agricultural products, as well as the products which are produced using hazardous technologies. Conservation of ecosystem services increases social security and increases the income of the rural population. It is required to develop agro-technological measures to produce organic food, taking into account the climatic conditions of the regions.

Public infrastructure investment in the time of Covid

Public infrastructure investment in the time of Covid

Large-scale greenway intervention promotes walking behaviors: A natural experiment in China

• Among one of the first studies on causal inference of greenway intervention and walking behaviors. • Significantly positive effect of greenway infrastructure on weekly walking time. • Residents living within two kilometers from the greenway had increased weekly walking time. • Women and socioeconomically disadvantaged people benefited most from the greenway. Extensive evidence from cross-sectional studies has revealed a positive link between greenspace access and walking behaviors. However, the inherent weaknesses of the cross-sectional research design have provided little causal inference. In this natural experimental study, we assessed the effects of a large-scale greenway intervention (i.e., the opening of East Lake greenway) on walking behaviors in Wuhan, China. Longitudinal survey data on 1,020 participants were collected before and after the intervention in 2016 and 2019, respectively. The results of the mixed-effect difference-in-difference (DID) models showed that the greenway intervention had a significantly positive effect on the walking time, especially for residents living within two kilometers from the greenway. Furthermore, women and socio-economically disadvantaged people benefited most from the greenway implementation regarding walking time. Our findings provided compelling evidence that public investment in transportation infrastructure (e.g., greenway) effectively promotes walking behaviors and mitigates social inequities in physical activity.

Modeling the Impact of Electric Vehicle Charging Infrastructure on Regional Energy Systems: Fields of Action for an Improved e-Mobility Integration

Since e-Mobility is on the rise worldwide, large charging infrastructure networks are required to satisfy the upcoming charging demand. Planning these networks not only involves different objectives from grid operators, drivers and Charging Station (CS) operators alike but it also underlies spatial and temporal uncertainties of the upcoming charging demand. Here, we aim at showing these uncertainties and assess different levers to enable the integration of e-Mobility. Therefore, we introduce an Agent-based model assessing regional charging demand and infrastructure networks with the interactions between charging infrastructure and electric vehicles. A global sensitivity analysis is applied to derive general guidelines for integrating e-Mobility effectively within a region by considering the grid impact, the economic viability and the Service Quality of the deployed Charging Infrastructure (SQCI). We show that an improved macro-economic framework should enable infrastructure investments across different types of locations such as public, highway and work to utilize cross-locational charging peak reduction effects. Since the height of the residential charging peak depends up to 18% on public charger availability, supporting public charging infrastructure investments especially in highly utilized power grid regions is recommended.