nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2016‒06‒18
nine papers chosen by
Arvi Kuura
Tartu Ülikool

  1. The role of community leadership in the development of grassroots innovations By Mari Martiskainen
  2. Appraising Transformational Projects: The Case of the Grand Paris Express By OECD
  3. Fit-risk in Development Projects: Role of Demonstration in Technology Adoption By Parks, Moon; Bansal, Sangeeta; Zilberman, David
  4. The Joy of Flying: Efficient Airport PPP contracts By Eduardo Engel; Ronald Fischer; Alexander Galetovic
  5. Microcredit Contracts, Risk Diversification and Loan Take-Up By Attanasio, O.; Augsburg, B.; de Haas, Ralph
  6. Evaluation of the Transition to High-Value Agriculture Project in Moldova: Baseline Findings from the 2013-2014 Farm Operator Survey By Evan Borkum; Seth B. Morgan; Jane Fortson; Alexander Johann; Kenneth Fortson
  7. Challenges for Australia in mining investment: lessons learned from mega-projects in small developing countries By Fisher, Brian
  8. Estimating supply functions for agri-environmental schemes: Water quality and the Great Barrier Reef By Rolfe, John; Windle, Jill
  9. Factors Supporting the Development of Producer Organizations and their Impacts in the Light of Ongoing Changes in Food Supply Chains: A Literature Review By Jan Falkowski; Pavel Ciaian

  1. By: Mari Martiskainen (Centre on Innovation and Energy Demand, Sussex Energy Group, SPRU)
    Abstract: This article focuses on the role of community leadership in the development of grassroots innovations. It asks: When community leaders initiate energy projects, what types of skills and knowledge practices do they utilise to nurture grassroots innovations? Grassroots innovations are usually driven by social and sustainability motives, and developed by civil society groups. Based on a mixed methods approach including research interviews and site visits, the article draws on previous literature on community leadership, grassroots innovations and niche literature. Community leadership is analysed via two in-depth community energy cases in the UK. Research findings show that community leadership can aid the development of grassroots innovations, which operate in niches and require nurturing. Community leadership benefits from being embedded into social networks, shared vision and decision making, but pre-existing skills and tacit knowledge also play a role. Community leaders can also assist niche building by working closely with intermediary actors.
    Keywords: community leadership, grassroots innovations, nurturing, intermediaries, community energy
    Date: 2016–10
  2. By: OECD
    Abstract: This paper starts from the premise that the scope of the appraisal of transport projects should depend upon the presence (or absence) of various forms of market failure. It reviews the purposes and processes of transport appraisal before setting out a typology of market failures. Then it examines what distinguishes marginal, non-marginal and transformational projects in appraisal terms and what special challenges are created by transformational projects. The report then considers the methods available for the appraisal of such projects and the challenges faced.
    Date: 2014–11–01
  3. By: Parks, Moon; Bansal, Sangeeta; Zilberman, David
    Keywords: technology adoption, fit-risk, demonstration, development subsidy, waste, unrealized demand., Institutional and Behavioral Economics, International Development, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, D8, I3, O1, O2, O3,
    Date: 2016
  4. By: Eduardo Engel; Ronald Fischer; Alexander Galetovic
    Abstract: We examine optimal contracts for PPPs which receive revenue from user fees as well as ancillary commercial revenue, for example from commercial space in the case of airports. We assume that demand for the project is exogenous. Ancillary revenue is observable and requires effort by the concessionaire. If this additional revenue is proportional to demand for the underlying PPP project, we show that the optimal contract of the concessionaire eliminates all exogenous risk but retains a fraction of the endogenous risk. The contract can be implemented via a standard Present-Value-of-Revenue (PVR) auction (Engel et al., 2001). JEL classiffications: H440, R420, L51 Key words: Creation-Date: 2015
  5. By: Attanasio, O.; Augsburg, B.; de Haas, Ralph (Tilburg University, Center For Economic Research)
    Abstract: We study theoretically and empirically the demand for microcredit under different liability arrangements and risk environments. A simple theoretical model shows that the demand for joint-liability loans can exceed that for individual-liability loans when risk-averse borrowers value their long-term relationship with the lender. Joint liability then offers a way to diversify risk and to reduce the chance of losing access to future loans. We also show that the demand for loans depends negatively on the riskiness of projects. Using data from a randomized controlled trial in Mongolia we find that these model predictions hold true empirically. In particular, we use innovative data on subjective risk perceptions to show that expected project risk negatively affects the demand for loans. In line with an insurance role of joint-liability contracts, this effect is muted in villages where joint-liability loans are available.
    Keywords: microcredit; joint liability; loan take-up; risk diversification
    JEL: D14 D81 D86 G21 O16
    Date: 2016
  6. By: Evan Borkum; Seth B. Morgan; Jane Fortson; Alexander Johann; Kenneth Fortson
    Abstract: This report describes the baseline findings from the 2013-2014 Farm Operator Survey for the evaluation of the Transition to High-Value Agriculture Project in Moldova.
    Keywords: agriculture, irrigation, Moldova, International
    JEL: F Z
  7. By: Fisher, Brian
    Keywords: Environmental Economics and Policy,
    Date: 2016–02
  8. By: Rolfe, John; Windle, Jill
    Abstract: Funding programs to improve water quality into the GBR are difficult to evaluate, and administering agencies typically need to allocate funds without a clear assessment of the cost-effectiveness of proposals. This is particularly the case for agri-environmental schemes where policy makers set targets for improvements in water quality from agricultural lands and then need to identify funds and programs to encourage changes in practices. The priorities for actions are often driven by bio-physical assessments of risks on the natural environment with little information about the opportunity costs and challenges in changing land management. The goal of the research reported in this paper is to develop a supply function for water quality improvements in agricultural lands in the Great Barrier Reef catchments. Costs of supply have been estimated from multiple sources, including modelling, expert opinion, and the analysis of water quality tenders and Reef Rescue grant programs. The study addresses challenges in reconciling cost estimates from different sources, dealing with heterogeneity across industries and catchments, and managing different influences on costs from factors such as risks, adoption issues and transaction costs.
    Keywords: Supply costs, Agri-environmental schemes, Great Barrier Reef, Water quality, Modelling, Agricultural and Food Policy, Environmental Economics and Policy,
    Date: 2016–02
  9. By: Jan Falkowski (University of Warsaw); Pavel Ciaian (European Commission – JRC - IPTS)
    Abstract: This report surveys the recent literature on producer organizations with a specific focus on factors affecting their establishment and their impact on farmers' market performance and welfare. The report also discusses producer organizations' role in improving farmers’ bargaining power and allowing them to respond to various challenges which result from dynamic changes characterizing commercial relations within the food supply chain. Key factors supporting the emergence and development of producer organizations include human and social capital, networking, interpersonal relationships between members (with an important role of trust) and the functioning of enforcement mechanism used to govern group behaviour. The existing literature provides also strong evidence that access to information and farming experience positively affect the emergence of producer organizations. There is also some evidence that larger farms are more likely to join collective action. The literature also clearly points that we are still far from reaching a consensus on who (private or public actors) should support promoting cooperation between farmers and what incentives should be provided to achieve this goal in the most efficient way. Although there are numerous studies pointing to positive effects of producer organizations on farm income or farm performance- in particular for high-value products – overall, the evidence is inconclusive and often mixed. For example, the existing literature often suggests that that the benefits of producer organizations in terms of improved farmer bargaining position in the food chain vary with time, place, technology, sector, scale of farming, and human and social capital available. An area where there is particularly little evidence on the impact of producer organizations concerns the nature and the dynamics of the contractual relationships at various stages of the food chain. Further research is also needed to improve our understanding of factors determining smallholders' participation in collective action, substitutability between formal and informal cooperation, determinants of power distribution throughout the food chain and the occurrence of unfair trading practices. Based on the surveyed evidence the report concludes with a set of policy recommendations.
    Keywords: Producer organizations, food chain, farmers, bargaining power, marketing, social capital, networking, agricultural policy
    JEL: L11 Q13 Q18
    Date: 2016–05

This nep-ppm issue is ©2016 by Arvi Kuura. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.