nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2014‒11‒01
seven papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Network Determinants of a Collaborative Funding System: The Case of the German Innovation Policy By Florian Umlauf
  2. Inducing Private Finance for Renewable Energy Projects: Evidence from Micro-Data By Miguel Cárdenas Rodríguez; Ivan Haščič; Nick Johnstone; Jérôme Silva; Antoine Ferey
  3. Better Regulation of Public-Private Partnerships for Transport Infrastructure: Summary and Conclusions By Stephen Perkins
  4. Economic Impacts of Inter-Island Energy in Hawaii By Makena Coffman; Paul Bernstein
  5. Inter-firm R&D cooperation in local innovation networks: The case of Italian technological districts By Otello Ardovino; Luca Pennacchio
  6. Small Might Be Beautiful, but Bigger Performs Better: Scale Economies in "Green" Refurbishments of Apartment Housing By Claus Michelsen; Sebastian Rosenschon; Christian Schulz

  1. By: Florian Umlauf (University of Bremen)
    Abstract: The granting of publicly subsidized joint projects has become a popular policy instrument in Germany and other developed countries. However, little is known about how an emerging subsidization network affects the overall allocation process of further project grants. Employing a database that contains all funded R and D projects of the German federal government, this paper analyzes the extent to which the funding network tends to reproduce itself. The results of an empirical model show that participation within a collaborative project does not raise, per se, the chance of an enterprise obtaining another project grant. Rather, it is important to hold central positions within the network or have access to a diverse external knowledge base to receive anew project grant.
    Keywords: R&D subsidies, project allocation, network determinants, cooperation, R and D
    JEL: H32 L53 L60 O38
    Date: 2014–10–08
  2. By: Miguel Cárdenas Rodríguez; Ivan Haščič; Nick Johnstone; Jérôme Silva; Antoine Ferey
    Abstract: This paper analyses the effects of government policies on flows of private finance for investment in renewable energy (inducement effect). It also examines whether direct provision of public finance for a project increases the volume of private finance raised (“crowding in” effect). A unique dataset of financial transactions for renewable energy projects with worldwide coverage is constructed using the Bloomberg New Energy Finance database. The analysis covers 87 countries, six renewable energy sectors (wind, solar, biomass, small hydropower, marine and geothermal) and the 2000-2011 time-span. Main findings are that, in contrast to quota-based schemes, price-based support schemes are positively correlated with investors’ ability to raise private finance. The paper suggests that, rather than the type of instrument (price vs. quota), it is the specific design of such schemes that is key to providing a predictable signal and an effective incentive to attract private investors. It is also found that public finance supports precisely those projects that have had difficulty raising private finance (co-financed projects), where neither quota-based measures nor price-based support schemes have a significant effect on private finance flows. This raises the concern that in the absence of well-designed policies which incentivise private finance investment, governments wishing to secure project completion have no other choice than to support projects directly through the use of public finance. Ce document porte sur l’analyse des effets des politiques publiques sur les flux financiers privés affectés à l'investissement dans les énergies renouvelables (effet d'induction). Il examine également si l’apport direct de fonds publics à un projet renforce la probabilité d'obtention de financements privés (effet d'attraction). Cette analyse est fondée sur une base de données sans équivalent sur les financements d'actifs (c'est-à-dire sur les opérations d'investissement réalisées dans des projets d'énergie renouvelable) construite à partir de la base de données Bloomberg sur le financement des énergies nouvelles (BNEF, Bloomberg New Energy Finance), couvrant tous les pays. Les principaux résultats indiquent que contrairement aux systèmes fondés sur des quotas, les dispositifs de soutien fondés sur les prix sont corrélés positivement avec la capacité des investisseurs à obtenir des financements privés. Notre analyse suggère que, davantage que le type de dispositif utilisé (instrument fondé sur les prix ou système de quotas), c'est la conception spécifique de ces dispositifs qui est déterminante pour donner des signaux prévisibles et des incitations efficaces attirant les investisseurs privés. L’analyse conclue également que les financements publics sont précisément affectés aux projets qui ont eu des difficultés à attirer des fonds privés (projets cofinancés), très probablement parce qu'ils ne sont pas économiquement viables en l'absence d'un tel soutien. Cela laisse à penser qu'en l'absence de politiques publiques judicieusement conçues, permettant d'attirer des investissements financiers privés, les gouvernements souhaitant garantir l'achèvement d'un projet n'aient pas d'autre choix que de soutenir directement ledit projet à travers des financements publics.
    Keywords: renewable energy, technology deployment, investment, finance, policy instrument choice, choix des instruments d'action, innovation induite, financement d'actifs, investissement, énergie renouvelable
    JEL: G3 H23 L94 O3 Q42 Q48 Q54 Q55 Q58
    Date: 2014–10–16
  3. By: Stephen Perkins
    Abstract: This report is based on discussions at an International Transport Forum Roundtable convened in September 2012 to review experience with the regulation of public private partnerships (PPPs) in the transport sector. Conclusions from the debate are developed with reference to the literature, particularly in relation to managing the risks associated with forecasting traffic. The report focuses on actuarial, structural and behavioural approaches to improving the regulation of PPPs and containing liabilities created by PPPs for public finance. It also examines the potential for private financing of infrastructure by treating packages of transport projects as regulated utilities. The report aims to clarify the objectives of PPPs, their impact on public finance and the different types of risk that need to be managed.
    Date: 2013–04–01
  4. By: Makena Coffman (Department of Urban & Regional Planning; UHERO, University of Hawaii at Manoa); Paul Bernstein (Operations Reserach)
    Abstract: This study assesses the economic and greenhouse gas emissions impacts of a proposed 400MW wind farm in Hawaii. Due to its island setting, this project is a hybrid between an onshore and offshore wind development. The turbines are planned for the island(s) of Lanai and, potentially, Molokai. The project includes building an undersea cable to bring the power to the population center of Oahu. It is motivated by 1) Hawaii’s high electricity rates, which are nearly three times the national average, and 2) its Renewable Portfolio Standard mandating that 40% of electricity sales be met through renewable sources by the year 2030. We use an economy-wide computable general equilibrium model of Hawaii’s economy coupled with a detailed dynamic optimization model for the electric sector. We find that the 400MW wind project competes with imported biofuel as a least-cost means of meeting the RPS mandate. As such, the wind project serves as a “hedge” against potentially rising and volatile fuel prices, including biofuel. Though its net positive macroeconomic impacts are small, the estimated reduction by 9 million metric tons of CO2 emissions makes the project a cost-effective approach to GHG reduction. Moreover, variability in imported fuel costs are found to be a much more dominant factor in determining cost-effectiveness than potential cost overruns in the wind project’s construction.
    Keywords: Wind Energy; Hawaii; Renewable Portfolio Standard; Computable General Equilibrium
    Date: 2013–09
  5. By: Otello Ardovino; Luca Pennacchio
    Abstract: This paper explores the drivers of inter-firm R&D collaborations in a particular type of innovation network, the technological districts created in Italy under a specific public policy to promote innovation. The empirical analysis used an original database containing information on research projects activated by the districts and on the characteristics of participating firms. The main results show that districts with governance oriented towards market logic and districts that include several universities foster a stronger cooperation among firms than other districts. In addition, network effects such as structural embeddedness and interlocking directorate greatly influence the propensity to cooperate. Lastly, knowledge transfer and absorptive capacity of firms also play an important role in shaping collaboration strategies. Some considerations about the effectiveness of public policy also emerge from the analysis. In particular technological districts foster research collaborations among small firms and between small and large firms. The latter type of cooperation could be very important to enhance the innovation capabilities of small firms and their performance.
    Keywords: R&D cooperation, innovation networks, firm behaviour, dyadic regession.
    JEL: L14 O31 O32
    Date: 2014–10–09
  6. By: Claus Michelsen; Sebastian Rosenschon; Christian Schulz
    Abstract: The energy efficiency of the residential housing stock plays a key role in strategies to mitigate climate change and global warming. In this context, it is frequently argued that private investment and the quality of thermal upgrades is too low in the light of the challenges faced and the potential energy cost savings. While many authors address the potential barriers for investors to increase energy efficiency, studies on the capabilities different investors have to reduce energy requirements of their property are scarce. This study investigates potential advantages of housing company's size, i.e. economies of scale, economies of scope and institutional learning in thermal upgrades of residential housing. Based on unique data on energy consumption in 102,307 apartment houses in Germany, we present new evidence for advantages and disadvantages of housing company's size in "green" retrofitting projects. Our estimations show, that large housing companies outperform private landlords by far in high effort refurbishment projects. In contrast, private landlords appear to have advantages in low effort, incremental refurbishment activities. The results offer new options for policy makers to refine the support schemes towards a low carbon housing stock.
    Keywords: "green" real estate, energy efficiency, refurbishment, economies of scale, economies of scope
    JEL: R31 R32 Q48
    Date: 2014
  7. By: Lucian Dragos POPESCU (National Defense University „Carol I”)
    Abstract: The new realities, generated by globalization and asymmetric conflicts, have a great impact and influence upon society. The military organization has to adapt itself to this new reality. The efficacy of military action is based on the pragmatic process of defense resource management, through the instruments offered by project management.
    Keywords: military organization, project management, defense resources, degree of satisfaction of the actors involved
    Date: 2013–11

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