Subsidies For Projects Research Articles

R&D project subsidy V.S. government innovation reward: The effectiveness on corporate innovation

This paper compares the effectiveness of R&D project subsidies and government innovation rewards. Using a dataset of China's listed companies from 2008 to 2019, we investigate the associations of these two innovation grants with corporate innovation. The results indicate that both R&D project subsidy and government innovation reward can increase corporate innovation output. However, only government innovation reward can encourage private R&D investment. In addition, R&D project subsidy serves as an incentive role through the governance and financing mechanisms, whereas the government innovation reward has only a governance mechanism. Furthermore, the R&D project subsidy has a relatively poor impact on large firms and state-owned enterprises (SOEs), whereas the government innovation reward can still motivate their innovation. This study contributes to the expanding body of literature by providing diverse evidence of innovation grants from the perspective of the government subsidizing stage.

Addressing the dollar crisis by investigating underlying causes, effects, and strategic solutions in emerging economies

Foreign exchange reserves (FER), especially dollar assets, are vital for a developing country to maintain economic stability, foster growth, and protect against unexpected amendments. In recent years, particularly since the onset of COVID-19, several emerging countries have experienced significant economic hardship due to a crisis in foreign reserves. This has led to inflation and disruptions in supply chains, healthcare, and various service facilities. Despite the gravity of this issue, previous studies have not investigated the causes and consequences of such sudden crises. This study aims to fill this gap by investigating the causes and consequences of sudden FER crises in a developing country, specifically Bangladesh, through a systematic review. The study also explores innovative process-oriented policies to mitigate the immediate FER crisis. The systematic literature review followed the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines. It included 90 articles published between 2020 and 2023. The results discovered that the FER crisis in Bangladesh has been triggered by both external factors (such as the COVID-19 pandemic, the Russia-Ukraine conflict, trade imbalances, and remittances) and internal factors (including large infrastructure projects, complexities in the banking sector, local project subsidies, a managed floating exchange rate, and an over-reliance on the ready-made garments sector). These factors escorted deflation of the national currency, causing further inflation, declining domestic purchasing capacity, and raising concerns about food security. Additionally, price hikes and unauthorized storage of daily necessities made accessing daily essentials challenging for locals. The government has implemented three policy interventions, including managing consumer demand, safeguarding the supply of goods, and regulating continuous market monitoring to overcome the challenges. This study proposes eight innovative process-oriented policy recommendations for mitigating the immediate foreign exchange crisis and promoting sustainable economic development. Overall, this study offers valuable contributions in developing sustainable global economic policies. It fosters improved recovery and reuse of materials and energy while advancing long-term growth in developing nations.

Current Development Status, Policy Support and Promotion Path of China’s Green Hydrogen Industries under the Target of Carbon Emission Peaking and Carbon Neutrality

The green hydrogen industry, highly efficient and safe, is endowed with flexible production and low carbon emissions. It is conducive to building a low-carbon, efficient and clean energy structure, optimizing the energy industry system and promoting the strategic transformation of energy development and enhancing energy security. In order to achieve carbon emission peaking by 2030 and neutrality by 2060 (dual carbon goals), China is vigorously promoting the green hydrogen industry. Based on an analysis of the green hydrogen industry policies of the U.S., the EU and Japan, this paper explores supporting policies issued by Chinese central and local authorities and examines the inherent advantages of China’s green hydrogen industry. After investigating and analyzing the basis for the development of the green hydrogen industry in China, we conclude that China has enormous potential, including abundant renewable energy resources as well as commercialization experience with renewable energy, robust infrastructure and technological innovation capacity, demand for large-scale applications of green hydrogen in traditional industries, etc. Despite this, China’s green hydrogen industry is still in its early stage and has encountered bottlenecks in its development, including a lack of clarity on the strategic role and position of the green hydrogen industry, low competitiveness of green hydrogen production, heavy reliance on imports of PEMs, perfluorosulfonic acid resins (PFSR) and other core components, the development dilemma of the industry chain, lack of installed capacity for green hydrogen production and complicated administrative permission, etc. This article therefore proposes that an appropriate development road-map and integrated administration supervision systems, including safety supervision, will systematically promote the green hydrogen industry. Enhancing the core technology and equipment of green hydrogen and improving the green hydrogen industry chain will be an adequate way to reduce dependence on foreign technologies, lowering the price of green hydrogen products through the scale effect and, thus, expanding the scope of application of green hydrogen. Financial support mechanisms such as providing tax breaks and project subsidies will encourage enterprises to carry out innovative technological research on and invest in the green hydrogen industry.

Game Model of Green Financial Supply Chain Based on Government Subsidy Analysis

Rural Revitalization is not only the necessary way to achieve common prosperity, but also an important strategy to promote China’s sustainable development. However, under the centralized administrative management system such as China, it is still lacking that the impact research of central fiscal policy on local government behavior and market behavior in the game theory. Therefore, This paper consider the existence of two local governments with different Rural Revitalization strategies and a channel structure composed of two manufacturers (township enterprises) and two retailers (E-commerce platforms). Each retailer sells only one manufacturer’s products, and the two manufacturers can choose different sales channels and financing modes. This paper analyzes the three-party four stage Stackelberg game among manufacturers, retailers and local governments under the same conditions of central government project subsidies. The study finds that township enterprises will choose online retail for product sales in the presence of consumer preferences. The central government’s project subsidy policy has a significant positive impact on both the product demand volume and the improvement of product greenness. Although, this policy is very important for the Rural Revitalization, under the lending mode of e-commerce platforms, government subsidies and excessively high loan interest rate of e-commerce platform will damage the utility of consumers and products Innovativeness. Therefore, the combination of the central government’s project subsidy and the control of loan interest rate is the policy combination to realize the better development of township enterprises.

The Impact of Financial Risks on Financial Investment in Infrastructure: Based on a Two-Factor Stochastic Differential Equation

Financial risks, such as inflation and interest rate changes, significantly affect the costs and benefits of infrastructure projects. Nevertheless, there is a dearth of research concerning financial investment (government subsidies) for infrastructure projects in the context of inflation and interest rate changes. Accordingly, this study builds a stochastic differential equation model based on inflation rate and interest rate, through which the expression of government subsidies in public-private partnership is optimised. Specifically, the Monte Carlo simulation was used to undertake a calculation of the present value of operating loss subsidy and risk-sharing subsidy for the N City Metro Line 3. Subsequently, the effect of inflation, nominal interest rates, interest rate volatility, as well as inflation volatility, on the present value of operating loss subsidies was investigated. It was established that the dynamic random discount rate based on inflation rate and interest rate may effectively simulate the effect of inflation rate and interest rate changes on project operating loss. Moreover, it is feasible to calculate the present value of the risk-adjusted operating loss subsidy and the present value of the risk-sharing subsidy. Inflation rate, inflation volatility, and interest rate volatility are positively correlated with the present value of operating loss subsidies, whereas the interest rate is negatively correlated with the present value of inflation-adjusted operating loss subsidies. Inflation volatility has the greatest effect on the present value of subsidies, followed by interest rate volatility and inflation rate. Ultimately, this paper provides an effective tool for quantitative simulation of and risk-sharing in public-private partnership projects, which can facilitate a regional economy’s sustainable development.

Research on Government Logistics Subsidies for Poverty Alleviation with Non-uniform Distribution of Consumers

We develop a Hotelling model with an asymmetric triangular distribution of consumer density to analyze the influence of the agricultural product upstream logistics subsidy (PUS) and the cold chain logistics project subsidy (CPS) for poverty alleviation on the competitiveness of agricultural products between impoverished and less impoverished general regions. When the government subsidies are strong enough, farmers' profits in the impoverished region may exceed those in the general region, or even lead to a loss of income for farmers in the general region. The government needs to carry out different logistics subsidies according to the different consumer sensitivity to price and to the logistics services of different agricultural products. The results and insights from our study could help policymakers and farmers to devise and select appropriate logistics subsidies.

When experts feel threatened: Strategies of depoliticisation in participatory river restoration projects

This paper explores how experts involved in river management projects in Switzerland consider public participation. It reflects on the consequences that these considerations have on the potential for participation to become a political space. Public participation has become a standard practice in river management at the European level since the 1990s. In Switzerland, the federal government incentivises public participation in river‐work projects through guidelines and additional subsidies for projects planned in a participatory way, with the goal of avoiding costly conflicts. Based on an analysis of expert discourses, we examine how experts activate three different arguments to depoliticise participation: that participation should be implemented to ensure acceptance of the project; that the exclusion of some actors is justified based on assumptions about the type of knowledge required for participation; and that disagreement should not be expressed within participatory processes but through representative politics. We conclude that the consistent motivation of experts to depoliticise also indicates a potential for participation to become political, which is worth exploring with new perspectives for engaging the public.

Transition to decentralised electricity storage: The complexities of consumer decision-making and cost-benefit analyses

An industry-supported smart grid pilot on Bruny Island, Australia (2016–2019) trialled the cost-effectiveness and management of consumer-owned energy storage for a potential future grid. Understanding consumer decision-making is pivotal to smart-battery uptake and depends on a relevant value proposition. An in-depth, exploratory case study of a cost-benefit analysis (CBA) is presented, with the CBA found to be favourable, due to low ongoing costs and the pilot project subsidy. However, some pilot participants remained dissatisfied despite a beneficial CBA. This demonstrates additional logics outside of the CBA methodology. One example explored was the value of battery backup for reliability. Policy learnings include the fact that battery backup is an important value for prosumers in rural contexts. However, battery backup might have value and relevance in urban contexts where energy self-consumption can be maximised (for example, with the addition of electric vehicles). Finally, policy makers might consider smart-battery schemes to provide detailed, transparent, CBA-like data for energy consumers to enable transparency, trust, and more accessible information to assist decision-making processes.

INTERNATIONAL EXPERIENCE IN PROVIDING FINANCIAL SUPPORT FOR LOCAL INVESTMENT PROJECTS

The article underlines the prospect of studying international experience in the context of decentralization processes in Ukraine. Local authorities and self-governments solve problems of development of industrial and social infrastructure, expansion and modernization of means of production in the conditions of severe scarcity of financial resources. The purpose of the article is to summarize the European experience of financial support for local investment projects, in particular, energy efficiency of housing and communal services. The experience of European countries on the financial support of local investment projects is explored. In the Western literature on financial planning, the importance of cash flow analysis is essential. The development of a cash flow model is performed using the following tools of discounted cash flow analysis, net present value (NPV), internal rate of return (IRR). Financial modelling is a key part of all projects. Drawing attention to strategically important calculations is one of the main tasks in the implementation process. The basic approaches to risk management during the implementation of infrastructure projects are analyzed. Depending on the amount of information available, the risk can be assessed qualitatively or quantitatively. Quantitative risk analysis is performed to calculate risks in terms of cost and impact of time. Qualitative analysis is carried out on risks that have been prioritized for quality risk analysis and have a significant impact on the project. Public-private partnership agreements often do not fully take into account the interests of the financial sector. This limits the ability to attract funds from private investors, including international financial institutions, to local projects. The types of budget financing of local programs are separately identified in the form of project subsidies, government guarantees and targeted investment tax benefits. The main forms of project finance loan can be an investment bank loan, targeted bond loans, equipment leasing and commercial project loan. The experience of the Eastern European countries on the financial support of energy efficiency projects for housing and communal services is considered. The centres of energy efficiency centres or networks should become institutes for financial modelling of projects in Ukraine, according to the experience of Eastern European countries. Universities may be the starting points for such centres. Developing alternative models of energy-saving technologies or tariffs can be an information product and an example of creating a competitive environment in the housing and utilities system. Limited possibilities of the state budget in the context of rising external debt, deterioration of the level and quality of life of citizens, increasing the complexity of business activities require the need for further theoretical alternatives using the experience of other countries, taking into account their own experience and achieving social consensus. Keywords: decentralization, investment projects, financial modelling, financial risks, energy efficiency.

Influence of Municipalities on LAG's Effectiveness in Attracting Project Subsidies in Croatia

Local Action Groups LAGs are tri-sectoral bodies in which the economic and civil sectors in partnership with the public sector use EU policy funds for rural development. In such a decentralized approach to community led local development there is a risk of excessive municipal interference and principles of bottom-up development can be compromised. The basic assumption by which the leading public sector is trying to justify itself as having a better administrative capacity that can help LAGs to attract and absorb subsidies is statistically tested in this paper. Example of Croatia has shown that “municipalisation” of local partnerships have no justifications, as increasing the share of public partners in the membership structure reduces LAG effectiveness in attracting project subsidies, and in the same time municipalities that prove stronger absorptive capacity through larger share of EU funds in their budget, show no positive influence transferred to LAGs in which they are members.

Telecommunication access business model options in Maluku and Papua, the less-favored business regions in Indonesia

PurposeThis paper aims to provide feasible business model options that benefit all stakeholders; the government, the investor and especially the inhabitants in Maluku and Papua, the less-favored business regions in Indonesia.Design/methodology/approachThree feasible business model options result from ICT for development literature, current role of the government, other models and investment scheme review, statistical analysis, technology analysis and investment simulations.FindingsThis paper proposes three different feasible business model options. The infrastructure subsidy model, which combines 20 per cent private investment and 80 per cent government subsidy, is the most feasible business model based on investment simulations. This model which combines 20 per cent private investment and 80 per cent government subsidy provides stronger determination of Indonesian Government for serving rural and remote people. The revenue subsidy and the mixed project subsidy are alternative models that may provide more attractive schemes from the standpoint of investors.Research limitations/implicationsHowever, current paper has limitation which is subject to enhance for better analysis in future research such as implementation of the in-depth assessment of risk management system to deal with all exposed risks.Practical implicationsThis paper provides that setting up a complete telecommunication access infrastructures in eastern Indonesia is feasible under new proposed models.Social implicationsThe new proposed models provide stronger determination of Indonesian Government for serving rural and remote people and minimizing the digital divide in eastern area.Originality/valueUnder the new proposed models, the role and capacity of the government is adjusted. The government should dominate and be less dependent on private investment. Also, the government should shift from triggering service penetration into developing a complete infrastructure set up.

FRP Frange International Standardization Activities, Promotion awareness project subsidy adopted by Arai Science and Technology Promotion Foundation

FRP Frange International Standardization Activities, Promotion awareness project subsidy adopted by Arai Science and Technology Promotion Foundation

Efficiency measures of the Chinese biogas project subsidy policy using an additive two stage DEA

In this study, based on the perspective of effectiveness, the entire process of the biogas project is divided into two sub-processes (biogas production and biogas consumption). We utilize the additive two-stage Data Envelopment Analysis to evaluate the efficiency of biogas project subsidy policy. Our finding indicates that from the perspective of input-output efficiency, the efficiency of biogas project subsidy policy is low in China. There are two main reasons for this result: the subsidy is inadequate and its purpose deviates from the actual demand. First, because the subsidy is inadequate and the construction cost of the rural biogas project is high, farmers are unable to build rural household biogas digesters by raising funds themselves. Second, the biogas project subsidy policy only stimulates the increase in biogas production through increasing the construction of large and middle scale biogas projects. But the construction of a household biogas digester is ignored. Furthermore, macro-affecting factors have a significant influence on the implementation of biogas project subsidy policy. When formulating new biogas project subsidy policy, the government should consider the influence of urbanization, per capita annual income, and international oil price fluctuations. The above analysis could provide theoretical guidance for the government to formulate new biogas project subsidy policy.

The Economics and Politics of Process Innovation and the Sustainable Urban Development

The paper analyses process innovators and non-innovators and their characteristics and strategies. The sustainable urban development is dependent on many factors. One of them is the ability of large companies to adapt to changes. The likelihood of engaging continuous process innovation is higher for larger firms in the Czech manufacturing industry. Large companies are important part of region and their instability can negatively affect the whole region. Being part of a business net (part of a group, innovation cooperation activities) is a positive determinant of process but only in certain stages of innovation process. The public policy aimed at regional technological hubs and networks can provide necessary boost for regional development rather than grants and public subsidies for innovation projects.

Brussels and Contemporary Dance: Artistic Labor in a Creative City

Within my contribution, I present the research project “Choreographies of Precariousness. A Transdisciplinary Study of the Working and Living Conditions in the Contemporary Dance Scenes of Brussels and Berlin” (supervisors: Katharina Pewny, Rudi Laermans, Christel Stalpaert; UGent and KULeuven; sponsored by FWO). For this conference, I would like to concentrate on the specificity of the contemporary dance profession and to elaborate the landscape of working in Brussels.Working formats in contemporary dance revolve around internationalization, mobility, transnationalism, and collaboration. Contemporary dance therefore requires an appropriate social security system taking into account the specificity of the profession.Brussels attracts many foreign dancers, as it offers prominent training possibilities, and hosts several reputable companies and workspaces. Flanders has established a unique social security system for the performing arts professions; however I will elucidate where the system collapses when it comes to contemporary dance. I will demonstrate how dance artists question the working conditions they are confronted within Flanders by analyzing their performances of precaritiousness. Flemish dancer Benjamin Vandewalle uses his pieceCo-Productie(2011) to advert to the socio-economic situation, through abruptly stopping his performance in the middle of the piece, clarifying to the audience that he will not continue since the Minister of Culture decided to downsize project subsidies in the middle of the season. He calls for the investment of 2,500 euros by the audience so he can finish the piece. The latter tactic can be seen as one of many ways dance artists are bound to work collaboratively against their precariousness.

Model of an optimal public-private partnership project in the telecommunications sector

Svetlana V. MALTSEVA - Professor, Department of Innovation and Business in Information Technologies, National Research University Higher School of EconomicsAddress: 20, Myasnitskaya Street, Moscow, 101000, Russian FederationE-mail: smaltseva@hse.ruPolina V. KOTELNIKOVA - Post-graduate Student, Department of Innovation and Business in Information Technologies, National Research University Higher School of Economics; Chief Inspector, Russian Accounts ChamberAddress: 20, Myasnitskaya Street, Moscow, 101000, Russian FederationE-mail: kotelnikovapolina@gmail.com This article presents an investment project model in the telecommunications sector using public-private partnership (PPP), making it possible to link the main project parameters (duration, volume of investments, fare, request) with the expected indexes of effectiveness. When considering the project parameters and indexes of effectiveness, interests of both the state and private company are taken into account.The modeling algorithm and criteria of performance evaluation are developed based on the standards approved for evaluation of investment projects with state participation, namely the Guidelines on performance evaluation of the investment projects approved by the Ministry of Economy, Ministry of Finance, State Construction Committee of the Russian Federation on June 21, 1999, No. VK 477. This paper assumes that the most important criterion for evaluation of project effectiveness of a private company is the maximum of the net present value of the project, meaning the excess of the total cash receipts over the total cost for the project with regard to disparity of the effects (costs and benefits) related to different moments in time. Therefore, the higher this index, the greater is the interest of a private company to participate in the project. It seems that from the standpoint of the state two factors are most important: the social significance of the project and minimum expenses of the state for implementation of the investment project under conditions of a limited capacity of spending budget funds. The social significance of the project is defined by expert study as the impact of the operational results on at least one of the domestic or foreign markets: financial markets, product and service markets, labor market, etc., as well as the ecological and social environment. The model makes it possible to calculate various scenarios to determine optimal project parameters ensuring maximum efficiency for a given limit on the amount of budget investments. The calculation results for the proposed model can be used to make decisions to participate in the project by the authorities or public development finance institutions. It is proposed to document the model used and its evaluation criteria in the rules of granting subsidies for such projects.

Assessment of subsidies to minimize environmental pollution by Intensive Hog Feeding Operation (IHFO)

Environmental pollution caused by Intensive Hog Feeding Operations (IHFO) has long been an issue of common concern worldwide. The research constructs a theoretical framework development for the technological implementation of IHFO with Biogas project Subsidy, Fermented Bed Subsidy and Sewage Charge in the Government Policy design. Linear Programming method is used to simulate the impacts of policy variables on the manure disposal of IHFO. The result finds that: only above the threshold, that the Biogas subsidy is increased by 200 Yuan per head or the Fermented Bed subsidy by 100 Yuan per head, can policy variables play effective impact on the decision of manure disposal technology, and the maximal social benefit is achieved. Under the current subsidy policy, response of producers differs in the scale of Hog Farms. Biogas project subsidy can play roles in large-scale Hog Farms, while the litter subsidy of Fermented Bed plays mainly in small and medium-scale Hog Farms. The existing subsidy intensity needs to be strengthened in order to achieve maximum social benefit. An improvement of levying method and intensity of sewage charge will be able to stimulate producers' emphasis on manure disposal, increasing the implementation effect of subsidy policy.

GIS-based effect assessment of soil erosion before and after gully land consolidation: A case study of Wangjiagou project region, Loess Plateau

The Loess Plateau is one typical area of serious soil erosion in the world. China has implemented ‘Grain for Green’ (GFG) project to restore the eco-environment of the Loess Plateau since 1999. With the GFG project subsidy approaching the end, it is concerned that farmers of fewer subsidies may reclaim land again. Thus, ‘Gully Land Consolidation Project’ (GLCP) was initiated in 2010. The core of the GLCP was to create more land suitable for farming in gullies so as to reduce land reclamation on the slopes which are ecological vulnerable areas. This paper aims to assess the effect of the GLCP on soil erosion problems by studying Wangjiagou project region located in the central part of Anzi valley in the middle of the Loess Plateau, mainly using the revised universal soil loss equation (RUSLE) based on GIS. The findings show that the GLCP can help to reduce soil shipment by 9.87% and it creates more terraces and river-nearby land suitable for farming which account for 27.41% of the whole study area. Thus, it is feasible to implement the GLCP in places below gradient 15°, though the GLCP also intensifies soil erosion in certain places such as field ridge, village land, floodplain, natural grassland, and shrub land. In short, the GLCP develops new generation dam land and balances the short-term and long-term interests to ease the conflicts between economic development and environmental protection. Furthermore, the GLCP and the GFG could also be combined preferably. On the one hand, the GFG improves the ecological environment, which could offer certain safety to the GLCP, on the other hand, the GLCP creates more farmland favorable for farming in gullies instead of land reclamation on the slopes, which could indirectly protect the GFG project.

Effective strategy making: Co-designing scenarios as a tool for effective strategic planning

Effective strategy making: Co-designing scenarios as a tool for effective strategic planning

Effective strategy making: Co-designing scenarios as a tool for effective strategic planning

Effective strategy making: Co-designing scenarios as a tool for effective strategic planning