Public-private Partnership Investment Research Articles

Impact of public-private partnerships investment and FDI on CO2 emissions: A study of six global investment countries

This study investigates the impact of public-private partnerships investment in energy in energy and FDI on environmental quality in global investment countries during 1995–2018. Economic growth, technological innovations and consumption of clean energy are also considered as additional determinants of environmental quality. The study applied advanced panel econometric models. Our empirical results affirm the evidence of a long-run association between environmental quality and its determinants. Specifically, economic growth as well as clean energy use improves quality of environment by lowering carbon emissions. Public-private partnerships investment in energy in energy, FDI and technological innovations decrease carbon emissions. Energy consumption (generated from fossil fuel) increases carbon emissions. Heterogeneous causality evidence indicates the presence of a unidirectional causality relation from carbon emissions to public-private partnerships investment in energy in energy and a feedback causality occurs between consumption of clean energy and CO2 emissions. This empirical evidence provides new insights for both policymakers and governments to support public-private partnership investments in energy in energy for the improvement of quality of environment in global investment countries.

Research on Public-Private Partnership (PPP) Investment under Build - Operate - Transfer (BOT) and Build-Lease-Transfer (BLT) Contract Types in the High-Speed North-South Rail Project (HSR), the Hanoi - Vinh Line

Introduction The North-South high-speed rail development is a completely new field in Vietnam. Calculations show that Vietnam's high-speed rail system will attract a significant amount of investment, which is 4-5 times higher than developing highways, and the annual operation and maintenance costs are three times higher. Methods Public-Private Partnership (PPP) investment is effective and required to ease the strain on the state budget. This research aims to build a database for calculating the financial efficiency of the high-speed rail project (Hanoi -Vinh line), thereby establishing a mechanism for sharing benefits and risks between the state and investors through financial scenarios: applying Build - Operate - Transfer (BOT) contracts with state participation rates of 50% and 80%, respectively. Results The qualitative research method is used to determine the indicators influencing the project's benefits and costs, assume and adjust economic, financial, and fare parameters based on Vietnam's actual conditions, and investigate and survey the affected areas to assess passenger transport demand. Conclusion Furthermore, the financial efficiency of the project is calculated, and various participation options for the parties involved are proposed to attract investors.

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.

Identifying Critical Success Factors of Public Private Partnership Projects in Türkiye

Public private partnerships (PPPs) have become increasingly common as a result of states' shifting roles in infrastructure services from service providers and operators to policymakers and regulators. PPPs have been established as a prominent technique of public service procurement in both developed and developing countries. PPPs give the parties the opportunity to split the costs and risks of providing a public service or building a public infrastructure. Successful project management is crucial, especially in light of PPP projects' size and complexity. This study investigates the critical success factors (CSFs) of PPP investments in developing countries. In this regard, 23 CSFs were selected based on a thorough literature review, and a questionnaire survey was run to examine the impact of those factors on PPP performance. The information is gathered from 82 different companies in Türkiye that represent both the public and private sectors. The statistical analysis results show that favorable legal framework, detailed and clear project identification, and extensive cost-benefit assessment are the most significant drivers of success. Additionally, factor analysis is used on the data to investigate and identify underlying correlations between the factors, as well as to categorize them into fewer, more focused, and more thorough factors. The results of factor analysis suggest five dimensions; namely project finance, project management, operational factors, procurement, and organizational factors. The study's findings are anticipated to benefit both the public sector in its focus on legal concerns to permit better operation and the contractors in its examination of their capacity to manage big projects more effectively.

EFFICIENCY OF PUBLIC-PRIVATE PARTNERSHIP IN INFRASTRUCTURE DEVELOPMENT: ANALYSIS AND PROSPECTS

In 2022, the magnitude of investments in Public-Private Partnerships (PPP) within the infrastructure sector demonstrated a gradual resurgence. Beyond the well-established practice of attracting significant PPP investments in developed nations, there has been a notable increase in the engagement of middle-income countries in the utilization of public-private collaborative mechanisms for the advancement of their infrastructure. Among the sectors, transportation, and communications have consistently maintained a prominent position in terms of both investment influx and the quantity of successfully executed infrastructure projects on a global scale. Quantitative performance indicators within the sphere of PPP projects, encompassing metrics such as the count, monetary volume, and the proportion of different agreement types, manifest encouraging trends in the execution of infrastructure PPP initiatives. Conversely, the qualitative outcomes of this investigation reveal a spectrum of issues that are intrinsically linked to CSFs. These CSFs represent the principal benchmarks that exert a direct influence on the efficiency of PPP projects concerning their established objectives, processes, and management framework. The research undertaken by the authors has successfully identified a range of disparities in the challenges faced during the implementation of PPP projects across diverse nations, notwithstanding the similarity in the underlying mechanisms of cooperation.

Spatial diffusion of public-private partnership (PPP) in China: A county-level analysis

This paper explores the spatial diffusion of Public-Private Partnership (PPP) in China, assessing the effects of regional boundaries, including political and functional boundaries, and transaction costs on this process. We conduct an empirical analysis using county-level panel data from 2014 to 2020 and employ a combination of geographic information system (GIS) and spatial autoregressive models to analyze the spatial factors influencing PPP diffusion in China. Our findings reveal three key points: First, local governments' PPP investment positively correlates with neighboring regions, indicating a contagious effect. Second, the contagious effect is more significant within the same urban agglomeration, demonstrating a boundary effect and illustrating the impact of spatial rescaling on spatial diffusion. Third, the contagious effect is more pronounced for PPP sectors with lower output measurement difficulty, suggesting transaction costs influence spatial diffusion. These findings offer valuable insights into barriers to spatial diffusion and strategies to promote the spatial diffusion of innovation.

Exploring the impacts of public-private partnership investments and collaborative solutions for tackling inadequate funding in French language education

<p>Educational institutions are shifting from traditional government bonds to the dynamic landscape of Public-Private Partnerships and collaborative funding models. However, limited research efforts have been directed toward studying the effects of Public-Private Partnerships and collaborative funding solutions in education. The methodology of the paper involves a comprehensive literature analysis to examine the existing body of knowledge related to the implementation of Public-Private Partnerships (PPPs) in French language education. This study delineated the critical financial constraints faced by educational institutions, emphasizing the need for innovative approaches. Within the public-private partnership sphere, the study scrutinizes the effectiveness and viability of these collaborative arrangements. In tandem, the study covered perspectives on the multifaceted impacts of collaborative investments, recognizing the potential of these collaborations to ameliorate the financial gaps in French language education. The study proposed strategies for fostering effective Public-Private Partnerships, offered guidance for educational leaders and policymakers, and illuminated future considerations and emerging trends that may transform the funding landscape in French language education. The culmination of this study is a synthesis of key opinions and findings, shedding light on the implications for the future of French language education and the prospects of addressing inadequate funding. The study provided valuable perspectives and recommendations for stakeholders, policymakers, and educators grappling with the persistent challenge of funding within the sphere of French language education.</p>

Public-private partnership in the agrarian sector: conceptual framework for development

The article deals with the conceptual framework for the development of public-private partnership (PPP) in the agricultural sector of Ukraine. The author substantiates the need to reorient the model of agricultural development to the principles of deeper interaction between the State and business, one of the key mechanisms for ensuring which is PPP, which is carried out on a contractual basis to achieve a common goal by combining resources to obtain certain benefits for each participant. The purpose of the study is to develop a conceptual framework for the development of PPPs in the agricultural sector of Ukraine. The study shows a low level of implementation of PPP projects (18 projects out of 193, or 9,3 %) and its rather slow development in our country's economy, mainly due to legislative obstacles. It is substantiated that in the current conditions the issue of partnership development is extremely relevant, since budgetary funds are not enough to implement large-scale projects in wartime. Therefore, involvement of private partners and the use of mechanisms for building long-term relationships with them is essential. The author emphasizes the need for real changes in the implementation of PPP investment projects in agriculture, clarification of the tools for ensuring its development and their adaptation to sectoral issues, which requires the development of a Concept for the Development of Public-Private Partnership in the Agricultural Sector of Ukraine. The study argues that it is necessary to develop a unified approach to the development of PPPs, to determine the priority areas of application of such partnerships and the specifics of its use in solving the problems of agricultural development. The main factors hindering the development of such cooperation are identified and the main objectives of the Concept for the Development of Public-Private Partnership in the Agricultural Sector of Ukraine are substantiated. It is proved that improvement of PPP procedures will help to expand the scope of its application, accessibility, speed and scale of projects, as well as adaptation of such an investment support mechanism to the conditions of wartime/peace time. The article summarizes the main ways of activating PPPs as a mechanism for attracting investment in the reconstruction and development of the agricultural sector of Ukraine's economy. The fulfillment of these tasks will contribute to the revitalization of the use of PPPs in solving the problems of agricultural production development, development of the institutional framework for its implementation in Ukraine, in particular, the adoption of strategic directions for this development in the short and long term. Key words: state, concept, private partner, public-private partnership, agricultural sector, PPP projects, investment resources, development.

Public-private partnerships investment in energy as new determinant of renewable energy: The role of political cooperation in China and India

The most urgent global concerns revolve around environmental degradation and climate change. The potential approach to address these challenges is the implementation of a transition towards renewable energy sources. The acquisition of capital plays a crucial role in facilitating the transition towards clean energy. The government sector has demonstrated a lack of adequate funds in numerous instances. Given the substantial financial requirements associated with renewable energy, it is imperative to establish partnerships with the private sector. Hence, this study examines the influence of public-private partnership investments on renewable energy, specifically focusing on the significance of political cooperation, R&D expenditures, and technological innovation in China and India from 1990 to 2021. We used panel ARDL and the Pairwise Granger causality tests for analysis. The findings revealed that public-private partnerships, R&D investments, and political cooperation enhance renewable energy whereas, technology impedes renewable energy. The results of the causality test confirm that there exists a bidirectional relationship between investments in research and development and renewable energy. Additionally, the analysis reveals a unidirectional relationship between technology and renewable energy. The study suggested policy implications for guiding investments in public-private partnerships within the energy sector to enhance renewable energy generation and safeguard environmental integrity.

Impact of innovation in hybrid electric vehicles-related technologies on carbon dioxide emissions in the 15 most innovative countries

This research is motivated by worldwide concern about global warming and its negative environmental effects. Given the significant contribution of the transportation sector to carbon dioxide emissions (CO2e), it is imperative to comprehend the potential of emerging technologies or strategies, including innovations in hybrid electric vehicle-related technologies (IHVRT), in mitigating CO2e. The top 15 countries renowned for their innovation are at the forefront of clean energy and sustainable practices, rendering them ideal for researching the impact of IHVRT on CO2e. This study examines the nexus between IHVRT and CO2e and other related sustainability indicators using the latest data (1990–2020) for the 15 countries with the most innovative global economies. The long- and short-term interactions between IHVRT, public-private partnership investment in energy (PPPIE), renewable energy consumption (RNEC), expansionary fiscal policy (EFP), GDPPC, contractionary fiscal policy (CFP), and CO2e were assessed through a cross-sectional autoregressive distributed lag (CS-ARDL) model. Data analysis supported the favorable long-term impact of IHVRT, RNEC, and PPPIE in reducing emissions in the sampled economies. EFP emerged as a contributing agent of CO2e, while CFP had an inverse relation with CO2e. The current estimations support policy initiatives aimed at prioritizing IHVRT, PPPIE, and RNEC while cautioning against the detrimental environmental repercussions of EFC.

From Loan-Financed to Privatised Infrastructure? Tracing China's Turn Towards Public–Private Partnerships in Africa

Waning debt sustainability has challenged the debt-financed, infrastructure-led global expansion of Chinese capital. This article traces the gradual shift in the financial governance of the Belt and Road Initiative towards public–private partnerships (PPPs). We first document China's domestic PPP experience and its failure to check the unsustainable indebtedness of sub-national governments. We then conceptualise China's “turn” towards PPPs in Africa as an attempt at “metagoverning” its current growth model. Analysing official Chinese sources, we discern dominant Chinese narratives that present PPPs as panaceas for African debt problems. However, Chinese risk perceptions and empirical examples, such as the Nairobi Expressway, the Tanzania–Zambia Railway, and the Congolese Kolwezi–Kasumbalesa toll road, reveal that China's experimentation with PPPs in Africa engenders new challenges, including popular contestation, controversies over financial terms and corruption. Furthermore, contrary to the official Chinese narrative, profit imperatives behind PPP investments and potential financial complications that were widespread in China's domestic PPP experience risk adding to the financial burdens of African governments and populations.

Factors influencing investment attraction in road infrastructure BOT projects: A comprehensive analysis in the southern key economic zone of Vietnam

Over the course of the last two decades, Vietnam has demonstrated a growing interest in public-private partnership (PPP) investments within the domain of road transport infrastructure. However, the overall success rate of these endeavors has remained constrained and, in fact, has displayed a propensity for decline. Understanding the primary determinants behind this phenomenon, particularly the internal factors within the management system, has been a perplexing and protracted process, hindering the development of viable solutions. This research employs a qualitative analysis approach, leveraging in-depth interviews conducted with 250 road traffic infrastructure PPP project managers and experts. The objective is to discern the factors that exert influence over the investment attractiveness of build-operate-transfer (BOT) projects in the vital Southern Key Economic Zone of Vietnam. Subsequently, utilizing the collated data, this study employs a quantitative methodology to measure the impact of these factors via a derived multivariate regression equation. The findings reveal the existence of five distinct groups of factors that affect the investment attractiveness of BOT projects in the Southern Key Economic Zone, classified by their respective levels of influence. These groups encompass factors relating to the role of the state, the legal framework, human resources engagement in PPP ventures, supportive financial instruments, and the allocation of risk. Notably, these outcomes align with previous research efforts, further substantiating the robustness and reliability of the findings presented within this study.

Financing the economy in debt times: The crucial role of public–private partnerships

This paper aims to show that there is a great interest for countries to rely on Public–Private Partnerships (PPPs) as a tool for financing the economy, especially in times of debt. First, we conceptualize through game theory a better risk management between the public and private sectors in case of co-investment. Second, building on Iossa and Martimort (2009), we demonstrate that PPPs investments produce greater economic and social gains than pure public investments by providing incentives and transferring risks to the private sector. The implications of the model are diverse: financing the provision of public infrastructure through PPPs allows for sharing the associated risks, improves the quality and reduce the costs of the provision of public goods. The model has been empirically tested on 14 Sub-Saharan African countries over the period 1990–2017. The impact of PPP investments is significantly higher than that of pure public investments. The evidence also shows that the positive impact of PPP investments strengthens economic growth as the public debt grows to a point where there is no longer any significant pro growth impact.

Public–private partnerships and economic growth: a sectoral analysis from developing countries

Governments, particularly in developing countries, are continuously faced with the challenge of expanding infrastructure to keep up with population growth and rapid urbanisation. This challenge arises from the fact that public resources are strained as governments face high budget deficits and rising debt-to-GDP ratios. At the same time, development institutions alone have not succeeded in narrowing this financing gap. The constraints placed on the budgetary requirements of governments have shifted attention to public and private partnerships in financing infrastructure projects, which are at the heart of service delivery in developing countries. Whilst the use of Public–Private Partnership (PPPs) is a growing trend in developing countries, there is limited empirical studies that have assessed the impact of PPP investments on economic growth. This article, therefore, extends the limitations in the literature by investigating the effect of PPP sectoral investments on economic growth among 35 developing countries from 1997 to 2018 within the neoclassical growth framework. Using the system GMM estimation technique, we find aggregate PPP investment and energy investment to positively contribute to economic growth, which highlights the multiplier effect of energy in stimulating economic growth in developing economies. The policy implications of the findings are discussed.

Application of Asset Pricing Model in the determination of Public-Private Partnership

The study is to gain a better understanding of how the asset pricing model interacts with Public Private Partnership (PPP) in the larger domain of monetary policy. We employ monetary policy components that include a Panel least square test, and we apply it to the panel data set that contains 131 countries and 15 years of data on investment in the energy sector. According to the findings, the Policy rate is a critical factor in determining the minimum annual required rate of return that an investor earns on their investment. The viability gap refers to the difference between the actual return on investment from a public-private partnership project and the required rate of return of investors that is calculated by using the capital asset pricing model. This study benefits governments, private firms, and ultimately the public of a country. The paper shows how monetary policy can use to fill the issue of viability gaps in the case of public-private partnership investment projects.

The asymmetric relationship between public-private partnerships investment in energy and environmental degradation for sustainable development: new evidence from quantile-on-quantile regression approach.

According to the United Nations Agenda, the 2023 sustainable environment is necessary to secure this planet's future; public-private partnerships investment in energy is crucial to sustainable development. The research examines the quantile association between public-private partnership ventures in energy and environmental degradation in ten developing nations, and data is used from January 1998-December 2016. The advanced econometrics quantile-on-quantile regression approach is used to control the issues of heterogeneity and asymmetric relationship. According to the quantile-on-quantile approach, there is a strong positive association between public-private partnerships in energy and environmental degradation in Argentina, Brazil, Bangladesh, and India. But the negative relationship is observed on different quantiles of China, Malaysia, Mexico, Peru, Thailand, and the Philippines. The findings suggest that the world needs to act as a single community and divert its resources toward renewable energy sources to control climate change; also, to accomplish the UN 15-year road map of Agenda 2023 with 17-SDGs; out of these 17 sustainable goals, SDG-7 is related to affordable and clean energy, SDG-11 is about sustainable cities and communities, and SDG-13 focuses on climate action for sustainable development.

Green Masquerade: Neo-liberalism, Extractive Renewable Energy Transitions, and the ‘Good’ Anthropocene in South Africa

This chapter examines the ‘green’ energy developments apparent in the South African government’s energy policy and renewable energy programme. In 2011, the South African government introduced the Renewable Energy Independent Power Producer Procurement Programme as a new policy imperative for electricity generation from renewable energy sources through publicprivate partnerships. The Programme has been hailed for attracting a huge amount of direct foreign investment in climate mitigation in South Africa. This chapter analyses the material nature of the Programme and the publicprivate partnership investment conditions, based on a case study of the Tsitsikamma Community Wind Farm in the Eastern Cape in South Africa, an electricity generation project initiated prior to the introduction of the Independent Power Producer renewable energy programme on community reclaimed land. This community was a willing partner in the wind energy investment partnership. Despite their inclusion in this techno-capitalist development project, however, the material well-being of members of this community remains unchanged, as does the degraded state of the commercial agricultural land involved. The chapter argues that the capitalist neo-liberal logic of alternative ‘green’ energy interventions in investment models such as this renewable energy programme is embedded in the machinations of the extractivist productivist model through ‘new’ forms of financialisaton for capital accumulation.

Do natural resources impact economic growth: An investigation of P5 + 1 countries under sustainable management

Natural resources represent the base of our living and the entire economic activity. Their depletion is a major challenge for the economic development of both developed and developing economies. Their efficient use is an indispensable requirement and must be the aim of the public policies designed by the authorities worldwide. In this research, we have investigated the impact of the natural resources rent on the economic growth in some major wealthy economies of the world (P5 + 1 countries namely: US, UK, France, China, Russia, and Germany). We have applied a quantile-on-quantile regression to analyse this impact on different quantiles and a cross-sectional autoregressive distributed lag (CS-ARDL) approach for the panel of these six countries. The Dumitrescu-Hurlin panel causality test was also used to check the causality between natural resource rents and economic growth in these countries. Results show a negative relationship between natural resources rent and economic growth for the panel but a different impact on quantiles in each country. Only for China and the US, a positive effect can be noticed for both lower and higher quantiles of natural resources and economic growth. The Dumitrescu-Hurlin causality test shows that natural resources can predict economic growth only in China, the U.S., and the panel. In contrast, no causality was found for the other four countries included in the panel. We suggest that nations invest in wind and solar projects, use biofuels and nuclear energy, introduce a temporary profit tax to protect consumers from escalating energy prices, and increase energy efficiency in buildings and industry. Businesses would benefit from a regulatory framework that is uniform and exhaustive, as well as easier to traverse and more receptive to innovation and creativity. Public-private partnership investments in innovation, innovation incentives, and environmental sector opportunities may foster long-term economic growth.

Public Finance, Fiscal Rules and Public–Private Partnerships: Lessons for Post-COVID-19 Investment Plans

We explore the distribution of public–private partnerships (PPPs) among the European Union countries, with a special focus on fiscal rules and budgetary constraints while controlling for empirically identified drivers. While offering the opportunity to increase innovation and efficiency in the public sector infrastructure, PPPs allow governments to relax their budget and borrowing constraints. We find that the state of public finances influences the government’s choice of PPPs and makes them more appealing for reasons other than efficiency. Stringent numerical rules on the budget balance also foster government’s opportunism in the choice of PPPs. On the other hand, high levels of public debt increase the country risk, and discourage private investors from PPP contracts. The results highlight the importance of restoring PPP investment choices based on efficiency criteria and adapt fiscal rules to shield public investment while stabilizing private expectations by means of credible trajectories of debt reduction. The findings contribute to the debate on the role of fiscal rules in fiscal policy and of PPPs in infrastructure financing.

Boosting Energy Efficiency in Turkey: The Role of Public–Private Partnership Investment

This study draws motivation from the United Nations Sustainable Development Goals (7.8.11), which highlight pertinent issues across the globe, among which are access to energy, responsible consumption, and sustainable development. To this end, we explored the pivotal role of public–private partnerships (PPP) investment in energy in Turkey, which is currently on an aggressive trajectory for its energy mix to energy efficiency. To avoid omitted variable bias in econometric strategies, we controlled for vital macroeconomic indicators such as foreign direct investment (FDI), trade flow, and economic growth. Empirical results showed a long-run equilibrium relationship between the outlined variables as traced by the autoregressive distributed lag (ARDL) bounds test. Subsequently, we observed a positive relationship between public–private partnership (PPP) investment in energy and the country’s energy intensification in both the short and long runs. A similar trend was observed between FDI, GDP growth, and energy intensity. These outcomes have inherent policy caveats for the Turkish energy sector and economic trajectory. Policy implications include efficient investment in clean energy (renewables) as part of Turkey’s effort toward energy intensification to guarantee sustainable development. Additionally, the involvement of PPP is a welcome dimension for sustainable economic growth. Further insights are documented in the concluding remarks.