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on Project, Program and Portfolio Management |
| By: | Narbel, Patrick A. (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | The new Basel III regulations are likely to make long-term financing more expensive, which will affect the financing of capital-intensive renewable energy technologies, because they typically rely on long-term financing. In addition, the capital and liquidity requirements of Basel III are likely to limit the amount of capital available for renewable energy financing from banks in the future. Together, these are threats to renewable energy deployment because limited financing may prevent the financing of some projects and because more expensive loans are likely to make a number of projects uninteresting financially. A potential solution is proposed here, which requires financing capital-intensive energy projects, pooling these investments into a portfolio and selling down the portfolio in tranches to various types of investors. The benefit of this solution for banks is that it will allow them to maintain the financing of capital intensive renewable energy projects, while complying more easily with Basel III. |
| Keywords: | Renewable energy financing; Basel III; capital-intensive energy projects |
| JEL: | Q00 Q20 Q40 |
| Date: | 2013–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2013_010&r=ppm |
| By: | Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Michèle Gaultier (APESA - Association Pour l'Environnement et la Sécurité en Aquitaine - APESA); Benoît De Guillebon (APESA - Association Pour l'Environnement et la Sécurité en Aquitaine - APESA); Gilles Mardon (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech) |
| Abstract: | This case study describes the social aspects of Total's CO2 integrated capture, transport and storage pilot project in Frontsouthwestern France, from the initial press conference February 8th, 2007 to the announce of its end in 2013. The economic and social context was favorable. The company proactively conducted an outreach campaign relatively large for a 50 m€ investment. It was followed by an effective involvement of stakeholders, if not of the general public, through a formal continuous deliberation process led by the public authorities. Some neighbors used their rights to protest and challenge legally the project. It did not become an issue at the national level. |
| Keywords: | CCS; pilot project; outreach; communication; France; case study |
| Date: | 2013–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-00788427&r=ppm |
| By: | Ådne Cappelen; Arvid Raknerud; Marina Rybalka (Statistics Norway) |
| Abstract: | We address the question of whether the returns to R&D differ between R&D projects funded by public grants and R&D in general. To answer this question, we use a flexible production function that distinguishes between different types of R&D by source of finance. Our approach requires no adjustment of the sample or data in order to include firms that never invest in R&D, in contrast to the standard Cobb-Douglas production specification. We investigate the productivity and profitability effects of R&D using a comprehensive panel of Norwegian firms over the period 2001-2009. The results suggest that the returns to R&D projects subsidized by the Research Council of Norway do not differ significantly from R&D spending in general. Our estimate of the average rate of return to R&D is about 10 percent. This estimate is robust with respect to whether firms with zero R&D are included in the estimation sample or not. In contrast, using a standard Cobb-Douglas specification and restricting the sample of firms to those with positive R&D, leads to implausibly high estimates of the rate of returns. |
| Keywords: | Returns to R&D; Public grants; Public subsidies; Productivity |
| JEL: | C33 C52 D24 O38 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:740&r=ppm |
| By: | Marco Marini (Department of Computer, Control and Management Engineering, Università "La Sapienza" Roma); Paolo Polidori (Department of Law, University of Urbino “Carlo Bo”); Davide Ticchi (IMT Institute for Advanced Studies Lucca); Désirée Teobaldelli (Department of Law, University of Urbino “Carlo Bo”) |
| Abstract: | One of the standard predictions of the agency theory is that more incentives can be given to agents with lower risk aversion. In this paper we show that this relationship may be absent or reversed when the technology is endogenous and projects with a higher e¢ ciency are also riskier. Using a modi ed version of the Holmstrom and Milgroms (1987) framework, we obtain that lower agents risk aversion unambiguously leads to higher incentives when the technology function linking e¢ ciency and riskiness is elastic, while the risk aversion-incentive relation- ship can be positive when this function is rigid. |
| Keywords: | Principal-agent, Incentives, Risk aversion, Endogenous technolog |
| JEL: | D82 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:urb:wpaper:13_04&r=ppm |
| By: | Andrey Klevchuk (Cambridge Resources International Inc.); Glenn Jenkins (Queen's University, Canada and Eastern Mediterranean University, Cyprus; Queen's University, Kingston, Canada) |
| Abstract: | Over the past decade, South Africa has experienced a rising pace of economic and social development which has facilitated the expansion of the basic social programs, especially in health and education. The education sector has been given a high priority by the National and Provincial authorities in order to eradicate illiteracy and to step up the scope and standard of education in public schools. As such, capital appraisal of the potential projects carried out by the department is now the focus of increasing attention. As a part of the continuous effort by the Limpopo Provincial Government to improve the quality of public infrastructure delivery by its departments, this handbook focuses on the process of capital project selection by the Department of Education (DOE). The objective of this handbook is to assist the decision-makers at the DOE in the selection of capital projects for construction and for rehabilitation, using a ranking system being developed as an extension of cost-effectiveness and cost-utility analysis. The handbook shows that the overall effectiveness of budget spending can be maximized when the funds are allocated for school construction and/or rehabilitation according to a priority index. |
| Keywords: | education, cost-effectiveness analysis, school construction and rehabilitation, priority index, budget allocation, South Africa |
| JEL: | D61 H43 H52 H75 I28 |
| URL: | http://d.repec.org/n?u=RePEc:qed:dpaper:221&r=ppm |
| By: | Fernando Cossio Munoz-Reyes (International Institution for Economics and Business, La Paz, Bolivia); Glenn Jenkins (Queen's University, Canada and Eastern Mediterranean University, Cyprus; Queen's University, Kingston, Canada) |
| Abstract: | Fragmentation and severe inequalities in health status, health infrastructure and services were among the major problems the Limpopo Provincial Government had to deal with when they took office in 1994. Hence, as part of an intensive program of legislative and policy development to reform the health sector, it is the Government’s priority to allocate scarce resources between building new health facilities and renovating, upgrading and/or revitalizing existing facilities. Given the main focus of Limpopo Province Department of Health and Welfare (DoHW) on improving the existing facilities in order to make a more effective use of them, the main allocation decision is how to select among the existing facilities and types of service improvements for the annual investment budgets. This Handbook describes a methodology of the evaluation of investment possibilities in order to help public officials in the Department to develop investment projects and health policy interventions that maximize economic and social well-being. The methodology outlined represents a state-of-the-art tool for conducting an integrated financial, economic, stakeholder and risk analysis of capital investments in hospitals, clinics and related policy interventions. |
| Keywords: | health infrastructure and policy, cost-benefit analysis, budget allocation, South Africa |
| JEL: | D61 H43 H51 H75 |
| URL: | http://d.repec.org/n?u=RePEc:qed:dpaper:222&r=ppm |
| By: | Andrey Klevchuk (Cambridge Resources International Inc.); Glenn Jenkins (Queen's University, Canada and Eastern Mediterranean University, Cyprus; Queen's University, Kingston, Canada) |
| Abstract: | It has been a challenge for the Limpopo Provincial Government to tackle the eradication of poverty and the acceleration of the pace of economic growth in the province. It is of importance for the Government to provide the basic infrastructure facilities such as roads, water, electricity, and telecommunication for not only the development of the region, but also the creation of a strong private sector. This handbook focuses on the process of capital appraisal by the Roads Agency Limpopo (RAL) so as to contribute to the Government in its continuous effort to improve the quality of public infrastructure delivery by its departments. The appraisal methodology employed in the handbook is based on an integrated financial, economic, stakeholder and risk analysis of new investment projects, as well as maintenance, and expansion decisions. The handbook presents that the Government officials can use the proposed methodology together with the Deighton Total Infrastructure Management System (dTIMS CTTM) software program for the allocation of the funds to the Limpopo roads, new and old, in an economically and socially efficient manner. |
| Keywords: | road construction and maintenance, cost-benefit analysis, South Africa |
| JEL: | D61 H43 H54 H76 R42 |
| URL: | http://d.repec.org/n?u=RePEc:qed:dpaper:223&r=ppm |