nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2017‒10‒22
five papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Do Clean Development Mechanism projects generate local employment? Testing for sectoral effects across Brazilian municipalities By Yadira Mori Clement; Birgit Bednar-Friedl
  2. Procurement with Unforeseen Contingencies By Herweg, Fabian; Schmidt, Klaus
  3. Examining actors into boosting the provision of universal service in the Vietnamese context By Thai Do Manh; Williams, Idongesit
  4. Principle-Agent Analysis of Technology Project (LINCOS) in Costa Rica By Mamoon, Dawood; Hernandez, SIlvia
  5. The Organizing Framework of Ecosystem Services and its use in River Management By Pamela Kaval; Marjan van den Belt

  1. By: Yadira Mori Clement (University of Graz); Birgit Bednar-Friedl (University of Innsbruck)
    Abstract: Clean Development Mechanism (CDM) investments have the two-fold objective of mitigating greenhouse gas emissions and contributing to sustainable development. But while the contribution to mitigation has been analysed extensively in the literature, the impact on development has barely been quantified empirically. This paper intends to address this latter gap by investigating the impact of different types of CDM investments on local employment generation. A dynamic panel regression model for the period 2004-2014 across Brazilian municipalities supports that some CDM projects have not only stimulated job creation beyond the renewable energy sector, but also had a contractive effect in some economic sectors. We find moreover a clear difference by project type: For waste handling and methane avoidance projects, overall employment increases while no such effect emerges for hydro projects. However, these job effects are mainly transitory, i.e. in the first or second year after the project's registration; the expansion effect can be explained as a result of local employment demands generated during the project's construction and operation phases. The lack of durability or the temporary effects in employment of these projects might question the contribution of their benefits to local sustainable development.
    Keywords: Employment generation; Clean development mechanism; Industry; Regional development; Municipality level; Brazil; Dynamic panel model
    JEL: P48 Q52 Q56 R23
    Date: 2017–05
  2. By: Herweg, Fabian (University of Bayreuth); Schmidt, Klaus (LMU)
    Abstract: The procurement of complex projects is often plagued by large cost overruns. One important reason for these additional costs are flaws in the initial design. If the project is procured with a price-only auction, sellers who spotted some of the flaws have no incentive to reveal them early. Each seller prefers to conceal his information until he is awarded the contract and then renegotiate when he is in a bilateral monopoly position with the buyer. We show that this gives rise to three inefficiencies: inefficient renegotiation, inefficient production and inefficient design. We derive the welfare optimal direct mechanism that implements the efficient allocation at the lowest possible cost to the buyer. The direct mechanism, however, imposes strong assumptions on the buyer\'s prior knowledge of possible flaws and their payoff consequences. Therefore, we also propose an indirect mechanism that implements the same allocation but does not require any such prior knowledge. The optimal direct and indirect mechanisms separate the improvement of the design and the selection of the seller who produces the good.
    Keywords: procurement; renegotiation; auctions; design flaws; adaptation costs; behavioral contract theory;
    JEL: D44 D82 D83 H57
    Date: 2017–10–17
  3. By: Thai Do Manh; Williams, Idongesit
    Abstract: Purpose - The paper looks at the formulation of the BMGF-VN project to examine which actors participated in the formulation of this project, how their interests were translated into this project, and what lessons may be drawn for the formulation and implementation of universal service policy in Vietnam in general. Design/methodology/approach - The paper recruits the actor network theory and qualitative analysis to analyse the BMGF-VN project. Findings - the involvement of non-government actors in formulating and implementing the project, the focus not only on the supply side but also demand side are very important in formulating and implementing universal service policy. Originality/value - There have been a few studies applying actor network theory in analysing the formulation of policy, especially in universal service. The paper wants to close this gap.
    Keywords: stakeholders,actor-network theory,universal service,telecommunications,Vietnam
    Date: 2017
  4. By: Mamoon, Dawood; Hernandez, SIlvia
    Abstract: In this paper we analyze the institutional arrangement between various actors to understand how ICT project objectives flow among actors in a standard LINCOS project and how they would affect the sustainability and effectiveness of LINCOS in particular and an ICT project in general. Since there are many actors involved in different stages and processes of a single LINCOS project, the paper analyses the bilateral and multilateral relationships among these actors to understand the factors that might affect the efficiency of the ICT project. In other words the paper looks at the actors involved in a LINCOS project in an effort to capture those circumstances under which a LINCOS project is exposed to principal- agent problems.
    Keywords: Technology, Game theory, Project Evaluation
    JEL: O19 O22 O32 O33
    Date: 2017–10–17
  5. By: Pamela Kaval; Marjan van den Belt
    Abstract: An Ecosystem Services approach can be used as an organizing framework to enhance the management of ecosystems, as multiple values and trade-offs can be identified and communicated through an ecosystem services lens. This can support more systemic, rather than incremental, planning, decision-making, and longer term value propositions. As rivers and their catchments/watersheds (RCW) are the lifeblood of many ecosystems, ecosystem services must adequately be taken into account in RCW planning, decision-making, and management to sustain and/or enhance this important natural capital. In this literature review, we discuss if/how an ecosystem services lens has been applied in the peer reviewed literature in the context of RCW management. Overall, the results reveal continual increases worldwide in the popularity and importance of considering ecosystem services in terms of RCW. Our findings also reveal that most of these studies have focussed on the themes of modelling, valuation, and/or mapping, but have not necessarily comprehensively used all three. We conclude that there is room for an ecosystem services approach to reach its full potential as an organizing framework, in particular across regions/countries and at multiple levels of scale.
    Keywords: ecosystem services; river; watershed; catchment; ecosystem service organizing framework; river management
    JEL: Q2 Q57 Q25 Q26 Q28
    Date: 2017–10–16

This nep-ppm issue is ©2017 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.