Investment Projects Research Articles

Positive or Negative: The Heterogeneities in the Effects of Urban Regeneration on Surrounding Economic Vitality—From the Perspective of Housing Price

Urban regeneration is a sound, sustainable urban development strategy globally. In China, promoting urban regeneration has become the national sustainable urban strategy. Under the resource constraint, it is necessary to understand what benefits different types of urban regeneration projects can contribute to urban development. Much research has contributed to evaluating the benefits of urban regeneration on the project scale. The systematic investigation of their effects on surrounding economic vitality, especially the comparison between different types of projects, is relatively downplayed. This paper aims to evaluate and compare the effects of urban regeneration projects on surrounding economic vitality by calculating the change in housing prices. Chongqing is selected as the case city. Based on the housing transaction data from 2015 to 2021, a staggered difference-in-difference method is employed to capture the results. The finding shows that the overall effects are significantly negative, especially within a 400–800 m radius. Higher investment or better project location relates to stronger negative effects. Moreover, the differences in effects among the three types of urban regeneration projects are clearly revealed from diverse perspectives. It provides a valuable reference for policymakers and urban planners to make urban regeneration planning better by considering comprehensive benefits.

Estimating social discount rate for government investment projects in Russia

The article explores methods of estimating discount rate for investment projects financed with budgetary funds and aimed at creating social benefits. Social benefits often do not have a direct monetary value, so the methods for determining the discount rate for such projects differ from market ones. Spending budget funds on investment projects means that society gives up consumption at the current moment in time for the sake of future return on investment. The discount rate should reflect public preferences regarding the distribution of consumption between the current and future periods. The method for estimating these preferences is called the social rate of time preferences. Another approach to determine the discount rate allows one to consider the alternative possibility of implementing a project in the private sector (social opportunity cost of capital). The article describes the development of methods for evaluating the social discount rate and discusses the possibilities of their application for Russia. The value of the social rate of time preferences, equal to 2.5%, and the value of the social opportunity cost of capital, equal to 4.4—5%, are substantiated for short-and medium-term public investment projects in Russia. Rates are given in real terms.

TECHNOLOGIES FOR ASSESSING THE OPERATIONAL QUALITY OF INDUSTRIAL BUILDINGS AS A CONSEQUENCE OF PARTIAL MILITARY DESTRUCTION

Purpose. Research conducted in the direction of operational quality proves that the life cycle of construction products can also be significantly increased due to the use of the latest technologies of a complex technical approach. The complex technical approach covers the principles of using the latest technologies, which compensate for the functional costs of the object at the stage of operation. As part of the latest technologies, the modern world requires the presence of developments that effectively save resources and at the same time ensure the required level of security in various crisis situations, including during a state of war. The main purpose of implementing this approach is to establish the reasons for the loss of reliability and resource when accounting for changes in the conditions of the external and internal environment. Methodology. Methods and techniques for diagnosing the reliability and operational quality of construction objects make it possible to implement assessment procedures at various stages of the life cycle, including during the current period, in previous design cycles (prototype search stages), as well as comparative and analytical comparison with analogues . The results of the implementation make it possible to identify the promising direction of normalization of construction projects, to substantiate and develop technologies for the formation of its operational quality. Findings. The situation of the physical state of the industrial building due to military destruction is analyzed, after which the search for optimization technologies in the formation of reliability and operational quality of construction objects, including for the effective implementation of investment and construction projects, is substantiated and proposed. Originality. Adaptation approaches of timely response in emergency conditions, in order to comply with the planned standards of operational quality, are substantiated, implemented on the practical example of the implementation of the technical report of the production and mechanical building No. 132, located in the city of Zaporizhzhia, SE "Ivchenko-Progress" 63T-1286-OB – TK after military destruction. Practical value. Adaptation approaches of timely response in emergency conditions, in order to comply with the planned standards of operational quality, are substantiated, implemented on the practical example of the implementation of the technical report of the production and mechanical building No. 132, located in the city of Zaporizhzhia, SE "Ivchenko-Progress" 63T-1286-OB – TK after military destruction. Conclusions. The results of scientific and practical research made it possible to reveal the actual principles of management technologies, evaluation and methods of improving operational quality at all stages of the life cycle of a construction object, taking into account risky and dangerous situations during military operations. This technical report was prepared on the basis of the performed visual and instrumental research of construction structures of the industrial building. The decision of the scientific group of experts established that the operation of the object under study should be stopped until its operational suitability is restored in accordance with the proposed recommendations in accordance with the project documentation. The scientific and practical significance of the study justifies the need for further application of the latest technologies of the complex technical approach in the formation of operational quality for the effective implementation of investment and construction projects.

The new bond on the block — Designing a carbon-linked bond for sustainable investment projects

Over the last decade, the green bond market experienced strong growth rates fueled by the need to combat climate change. However, the discourse on enhancing the effectiveness of green bonds primarily revolves around regulatory measures, often overlooking the possibility of designing inherent incentives. We show that a green bond with a coupon structure positively related to the carbon price development stimulates (early) investment in an emission-reducing project and creates higher net present values (NPVs) when applied in project financing. In our simulation-based framework, we model carbon prices using a geometric Brownian motion, and create a general optimal stopping time problem regarding the start of the project. The green bond in our setting carries the risk of default, also mitigated by its carbon price-linked coupon structure.

CAPITAL BUDGETING

The project talks about a capital budgeting and its methods including discounted cash flow, payback, and throughput analyses. The process involves analyzing a project’s cash inflows and outflows to determine whether the expected return meets a set benchmark, we are going to talk about how capital budgeting is also important for small and big companies to evaluate major projects and investments, such as new plants or equipment. In the present scenario the efficient allocation of capital resources is a most important function of project management. This function involves firm’s decision to invest its funds in long-term assets like plant, machinery land, building, equipment etc. These assets are extremely important to the firm because the organizational profits are derived from the use of its capital investment in assets which represent a long-term commitment of funds. The future development of an enterprise depends on the capital investment projects. These projects may be the replacement of existing capital assets which turns out to be less attractive to the firm or expansion of business for implementing new ideas and planning. Thus, long term investment decisions of an enterprise fall within the definition of project budgeting or capital expenditure decisions. These decisions are concerned with the acquisition of assets in which funds will be invested by an enterprise. The assets of business include long term assets and short-term assets. Long term assets will yield a return over a period of time whereas short term assets are those assets which are easily convertible into cash within one accounting period, normally a year. The long-term investment decision is known as project budgeting/capital budgeting and the short-term investment decision are identified as working capital management.

STATE AND PROSPECTS FOR THE DEVELOPMENT OF ISLAMIC FINANCE INSTRUMENTS (SUKUK) IN RUSSIA AND ABROAD

The search for new sources of financing investment projects in modern Russia in the context of external sanctions and the implementation of geopolitical threats actualizes the problem of incorporating Islamic finance instruments into the structure of the financial market. The early twentieth century development experience of a number of foreign countries shows the steady growth of the assets of Islamic banks, investment funds and the volume of issuance of investment certificates (sukuk), which constitute the main segments of Islamic finance in the world. Islamic financial assets are widely represented in the Gulf countries, Southeast Asia, the Middle East and South Asia, and Africa. The implementation of the principles of Islamic finance in the Russian Federation is hampered by legal, cultural, historical and political factors. While there are certain Islamic financial products in Russia, there is no issue of sukuk at all. In this regard, the purpose of this paper is to study the principles of Islamic finance and the functioning mechanism of the market for the investment certificates (sukuk), possibilities and limitations of their implementation in the modern Russian economy. The author defines sukuk as an Islamic financial instrument used for securitization of assets, and identifies its differences from traditional bonds. Alternative approaches to solving the problem of compliance of sukuk with Sharia principles are analyzed. The prerequisites for realizing the potential of sukuk in modern Russia are determined and the obstacles to their issuance are formulated. It is concluded that the adoption of the Federal Law of 04.08.2023 N 417-FZ "On Conducting an Experiment to Establish Special Regulation in Order to Create the Necessary Conditions for Carrying out Partnership Financing Activities in Certain Constituent Entities of the Russian Federation and on Introducing Amendments to Certain Legislative Acts of the Russian Federation" and its implementation, taking into account its provisions of pilot projects in a number of Russian regions, will make it possible to intensify the process of incorporation of project financing instruments into the structure of the financial markets of modern Russia.

Design and Implementation of an Intelligent Metro Project Investment Decision Support System

The construction of subway projects involves tight engineering cycles, multiple technical challenges, and complex coordination among various stakeholders. Due to the influence of uncertain factors during the construction process, the investment in subway project construction exhibits non-linear changes over time. Investment decision-making is the process through which the investment entity determines its investment activities. For typical investment entities, project investment decision-making primarily entails analyzing and evaluating proposed engineering projects based on investigation, analysis, and argumentation, ultimately deciding whether to invest. With the widespread application of information technology (IT) across various fields, decision support systems (DSS) have emerged to enhance the decision-making capabilities of enterprise management. This article designs an intelligent subway project investment DSS, leveraging data mining (DM) technology to integrate DSS with a data warehouse (DW).

The health economic-industrial complex: production and innovation for universal health access, Brazil.

The coronavirus disease 2019 (COVID-19) pandemic has highlighted global disparities in accessing essential health products, demonstrating the critical need for low- and middle-income countries to develop local production and innovation capabilities. The health economic-industrial complex approach changed the values that guided innovation and industrial policies in Brazil. The approach directed health production and innovation to universal access; the health ministry led a whole-of-government approach; and public procurement was strategically applied to stimulate productive public and private investments. The institutional, technological and productive capacities built up by the health economic-industrial complex allowed the country to quickly establish local COVID-19 vaccines production and guarantee access for the population. Brazil has a universal health system that guarantees access to health for its 215 million population. Public policies and actions, based on the health economic-industrial complex, guided investment projects in line with health demands, strengthened local producers, and increased autonomy in the production of health products in areas of greater technological dependence. During the COVID-19 pandemic, the country was able to rapidly scale up local vaccine production. By August 2021, Brazil had produced 74.8% (151 463 502/202 437 516) of the vaccine doses used in the country. The Brazilian example shows that low- and middle-income countries can build systemic development policies that increase their capability to produce and innovate in concert with universal health systems. This increased capacity can guarantee access to health products and supplies that are critical during global health emergencies.

Green investment policy and maturity mismatch of investment and financing in China's heavily pollution enterprises

In the context of China’s heavily polluting enterprises facing a challenge of maturity mismatch due to long payback cycles and environmental risks, this study investigates the potential impact of China’s ‘Green Investment Guidelines (Trial),’ released in 2018. The guidelines serve as a policy focal point, aiming to address the challenges posed by long payback cycles and environmental risks in the investment projects of these enterprises. Analyzing data from 2015 to 2021, our findings reveal a negative correlation between the guidelines and the maturity mismatch problem. Long-term investment emerges as a crucial intermediary variable in this relationship. Notably, the inhibitory effect is more pronounced in non-state-owned enterprises, firms with weak governance capabilities, and those with high ownership concentration.

DETERMINANTS OF THE DIMENSIONS OF FINANCING FOR INVESTMENT PROJECTS TO CREATE JOBS DURING THE PERIOD 2002-2013: A QUANTITATIVE STUDY OF THE NATIONAL AGENCY FOR INVESTMENT DEVELOPMENT IN ALGERIA

The study aims to fix the determinants of the financing dimensions of investment projects completed during the period 2002-2013. The purpose of undertaking these investment projects is to reduce unemployment and create new jobs. The study is purely quantitative after a complete database was obtained for each of the 48 states of Algeria, according to the administrative division in that period, from the National Agency for Investment Development (NAID) in Algeria. The determinants of the dimensions of financing for investment projects were obtained after we used the statistical technique of multiple linear regression analysis. From the perspective of the objective database, the methodology used to analyze the data, and complete transparency in dealing with the research process, we can confirm that the research results are honest and reliable, and the results can be generalized and a strategy for promoting investment in Algeria can be drawn up on a correct basis.

PUBLIC-PRIVATE PARTNERSHIP AS A TOOL FOR FINANCIAL SUPPORT OF THE ENERGY SECTOR IN UKRAINE: ANALYSIS, MECHANISM, FINANCIAL REPORTING

Based on the analysis of the dynamics of implementation of public-private partnership (PPP) projects in Ukraine, key problems have been identified and its priorities in financial support for the recovery of the native energy sector have been determined. It is appointed that PPP concession agreements are the main mechanisms for attracting investment in the global electric power industry. The expediency of using the concession model on BOT terms for the implementation of large projects in the energy sector is substantiated, which will contribute to the intensification of investment attraction and will allow to distribute risks between the state and business. Recommendations on the formation of an information platform for participants in the implementation of PPP projects on the basis of disclosure of information on the effectiveness of concession operations in accounting and financial statements have been developed. The tools for the formation of the financial mechanism of public-private partnership, where the priority is budget and venture financing, are substantiated. To make decisions on the implementation of PPP investment projects, an approach to assessing the financial support of project initiatives is recommended, the basis of which is the proposed criteria for compliance with financial security, the choice of funding sources, indicators of scenario analysis and efficiency. The proposed methodical approach to assessing the effectiveness of PPP allows us to assess the synergistic effect, which reflects the totality of economic, social and environmental effects. The formulated recommendations for improving the relationship between the state and business will contribute to the intensification of the attraction of private investment resources on the basis of PPPs for the restoration of the energy sector in Ukraine.

Building integration of solar energy systems in Türkiye and world

Energy is one of the most important issues from the Industrial Revolution and in the Globalizing World. Energy is also a big problem for the Republic of Türkiye, which has made a serious industrial breakthrough in the last 20 years. Because Türkiye, which does not have rich fossil fuels like the Middle Eastern States or Russia, is a foreign-dependent country for its energy needs. It is known that fossil fuels will be depleted in the near future and waste materials generated as a result of energy production pose great threats to the world ecosystem. Therefore, in recent years, developed and developing countries have been developing investment projects for alternative energy sources instead of fossil energy sources. The most efficient and harmless of alternative energy sources is Solar Energy. It should be noted that the use of solar energy, which is so efficient for our world and more attractive than other alternative energy sources in terms of the energy size it produces, requires a certain technical knowledge. Because Türkiye is geographically located in the middle belt and due to its special location, the number of sunny days is much higher than in other countries. In this article, the reality of solar energy in Türkiye and its potential, the solar energy systems used and how they are integrated into buildings, and the advantages and disadvantages of these integrated systems is reviewed. In addition, some examples from some countries of the world will be discussed. Furthermore, projects of integrated solar energy application systems in buildings in Türkiye are reviewed, in addition to some suggestions and recommendations in this field.

Screening-Evaluation of Regional Investment Projects for the Provision of State Financial Support Measures

The object of the study is regional investment projects (RIPS). The subject of the study is a methodological toolkit for assessing the investment attractiveness of regional projects, including criteria, indicators, methods and stages of making informed decisions about government financial support measures in relation to them. The relevance of the study is due to the state’s interest in the socio-economic development of regions under the conditions of sanctions pressure and the need to ensure effective spending of budget funds allocated to regional investment projects, which requires the formation of new methodological recommendations for evaluating projects implemented within the framework of state financial support measures. The purpose of the study is to develop methodological recommendations for screening and evaluating regional investment projects in order for public authorities to make informed decisions on providing financial support. The methods of comparative analysis, classification, regulatory regulation, statistical indicators, screening and investment assessment, and the method of hierarchy analysis were used. Methodological recommendations on screening assessment of regional investment projects are proposed, within the framework of which: 1) the characteristics of RIP are identified and their classification is considered; 2) the criteria for assessing the investment attractiveness of the project and its contractor (partner) are defined: general (the purpose of the RIP, its significance, the quality of project documentation) and special (economic, budgetary, social, environmental efficiency, performance feasibility, compliance with ESG principles of doing business, business image); 3) evaluation indicators and their thresholds, the achievement of which means the expediency of investing budget funds in the project. It is concluded that in order to make a decision on the provision of state financial support to RIP, it is necessary to achieve target values by indicators corresponding to three components: “State” (customer), “Project” and “Partner (contractor). At the same time, using the hierarchy analysis method, it was found that the investment attractiveness of the contractor has the greatest importance (weight) when choosing a project. The choice of the performer is based on screening of applicants according to the specified criteria.

1D Piecewise Smooth Map: Exploring a Model of Investment Dynamics under Financial Frictions with Three Types of Investment Projects

1D Piecewise Smooth Map: Exploring a Model of Investment Dynamics under Financial Frictions with Three Types of Investment Projects

ANALYZING THE RELATIONSHIP BETWEEN HEALTH EXPENDITURE, RENEWABLE ENERGY AND LIFE EXPECTANCY: EVIDENCE FROM ASIAN COUNTRIES

This study investigates the relationship between health expenditures, renewable energy and life expectancy in Asian countries within a model covering the period 2000-2020. GDP data are also included in the model. In the study, after applying cross-sectional dependence test and Cross-sectional Augmented Dickey-Fuller unit root tests, panel cointegration test is employed to show whether there is a long-run mutual relationship between health expenditures and other variables, and then Dumitrescu-Hurlin (2012) panel causality analysis method is used to test the causality between the relevant variables in Asian countries. According to the empirical findings, while causality is found between health expenditures and renewable energy in most of the Asian countries, there is also a high level of causality between life expectancy and health expenditures. Moreover, the cointegration test between health expenditures and other variables confirms that there is a long-run relationship between the variables. It is concluded that policy makers in Asian economies should develop policy frameworks that provide opportunities for renewable energy consumption and support investment in renewable energy projects to promote the use of clean technologies. Thus, an increase in renewable energy consumption can lead to economic prosperity by not only improving quality of life but also increasing productivity.

Impact of the COVID-19 Pandemic on Investment Capital in Thai Nguyen Province, Vietnam

The COVID-19 pandemic has had a huge impact on investment capital in Thai Nguyen, including both domestic private businesses and businesses with foreign direct investment. In an effort to overcome the impact of the COVID-19 pandemic, Thai Nguyen province has proactively grasped difficulties and problems and has plans to support and create favorable conditions for businesses in the area, including FDI enterprises and production peace of mind. The results also show that Thai Nguyen proactively grasps the difficulties and problems of investors to promptly resolve, create and strengthen the trust of investors who have been implementing investment projects in the province.

Multi-dimensional identification of investment risks in renewable energy projects along the Belt and Road: an integrated framework based on HHM and WRT

ABSTRACT Due to the complexity of various risk factors and their interactive effects in the risk management of renewable energy project investment, this study uses Hierarchical Holographic Modelling (HHM) and WSR–RFRM–TSS (WRT) methods to construct a risk assessment model for energy project investment. Firstly, we comprehensively identify the risk sources by applying HHM method, and then construct the risk assessment index framework based on the Wuli–Shili–Renli (WSR) methodology. To identify the most significant risk indicators, the risk factors are secondarily filtered by using the Risk Filtering, Ranking, and Management Framework (RFRM). Following that, multi-dimensional risk scenarios are created by incorporating the Theory of Scenario Structuring (TSS). Finally, an empirical study is conducted using the Karot Hydroelectric Project project as a case study. The results show that in the two-dimensional risk scenarios, the highest risk value is the coupling of political stability risk and institutional imperfection risk. In the three-dimensional risk scenarios, the highest risk value is the coupling of political stability risk, institutional imperfection risk and communication barrier risk. The risk values of two-dimensional risk scenarios are generally higher than those of one-dimensional risk scenarios and three-dimensional risk scenarios.

Mitigation and conservation plant translocations: Do perspectives of practice, funding and success vary between sectors?

Conservation and mitigation translocations aim for similar positive outcomes for species under threat, however different motivations drive their implementation. Despite the clear human component behind motivation, there has been limited examination of practitioner perceptions and how they compare across the conservation and mitigation sectors, or how practitioners view budget, timelines, and outcomes. Using semi-structured interviews, we observed significantly greater investment of in-kind contributions, as well as longer planning and project duration phases in the conservation sector. The reliance of the conservation sector on in-kind contributions is fraught, because although it correlates with longer-term project investment, there are risks from fatigue of personnel. Despite general support for translocation, most practitioners perceived the goals of conservation and mitigation projects as different, and mitigation practitioners were less likely to feel that the resource expenditure was justified. Both practitioner types aligned perceptions of success, estimated via plant survival and recruitment, with IUCN Translocation Perspectives ranking criteria. Our results demonstrated that a large knowledge gap exists in understanding the motivational drivers of practitioners, which needs to be filled for improved translocation outcomes. Interviewees from both sectors identified people-related project elements, such as expectations and communication, as key areas requiring improvement for better project outcomes. Site, timelines, and maintenance were also nominated areas for improvement, but this perception was influenced by experience level. Given the rapid growth in this field, we suggest the most advantageous improvements could be made in mentoring, communication, and planning, ensuring staged success criteria aligned with both species and team goals.

Effectiveness of Public-Private Partnership Projects During the COVID-19 Pandemic

The purpose of the study is to assess the effectiveness of public-private partnership (PPP) projects during the COVID-19 pandemic, taking into account the specificities of the industry. The empirical research base included the main characteristics (contract price, federal district of the project, customer, general contractor, project start period, project start year, project deadlines, price reduction during project implementation, application security, contract security and type of activity) of 144 regional investment projects. The research methodology included mathematical modeling using the DEA (Data Envelopment Analysis) data convolution method, on the basis of which an efficiency index was assigned to each PPP project from 0 to 1. The study concluded that prior to the COVID-19 pandemic, regional investment projects received more funding; after the start of the COVID-19 pandemic, the implementation time of regional investment projects has increased, the contract value more often changes downwards during the project implementation; and the average support for a project application has increased. The efficiency of implementation of regional investment projects, calculated using the DEA method, was reduced. The results obtained will be useful to private investors and government authorities when implementing joint projects to improve their efficiency.

From Theory to Practice: Applying the Markowitz Model in Stock Portfolio Management under ESG

The study consisted of a month-long simulated stock market operation focusing on the comprehensive analysis of equity portfolio creation and management. Against the backdrop of growing concern for environmental protection, the S&P 500 Net Zero 2050 Climate Transition ESG Index was deemed the appropriate benchmark for the portfolios due to the average level of risk tolerance of customers. The investigation began with an in-depth assessment of macroeconomic and sector conditions, followed by careful selection of securities using both fundamental and technical analysis techniques. The portfolio was then optimized using the Markowitz model and subsequently managed using a variety of strategies, including trading, monitoring, and rebalancing. The subsequent phase of the research involves a rigorous evaluation of performance utilizing various metrics including single-period returns and the Sharpe ratio. The study culminates in a reflective analysis of the overall investment project. Despite the portfolio's underperformance against the benchmark, the project provides invaluable insights into the intricacies of stock market investment and portfolio management, accentuating the impact of market volatility and the significance of strategic asset allocation.