nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2019‒04‒15
five papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Mise en œuvre des Paiements pour Services Environnementaux : Utilités d’un questionnement juridico-économique ? By Michel, Pech; Kristell, Jegou
  2. Accounting for timing when assessing health-related policies By Claxton, Karl; Asaria, Miqdad; Chansa, Collins; Jamison, Julian; Lomas, James; Ochalek, Jessica; Paulden, Mike
  3. Japan’s Foreign Aid and ‘Quality’ Infrastructure Projects: The Case of the Bullet Train in India By Purnendra Jain
  4. A Note on the Behavioral Political Economy of Innovation Policy By Jan Schnellenbach; Christian Schubert
  5. Community participation and the quality of rural infrastructure in Ethiopia By Shigute, Z.

  1. By: Michel, Pech; Kristell, Jegou
    Abstract: Facing budgetary restrictions, public environmental policies are turning to innovative schemes that meet objectives of results, a better adequacy of actions in the territories will allow access to new sources of financing, especially private ones. This is reflected at European level by a desire to move towards more contractualisation (CAP 2020). It is in this context that the payments for environmental services (PES) appear in France as an attempt to modernize the agri-environmental policy, aiming at looking for a "fairer" payment for the farmers but also seeking a greater efficiency environmental. At the same time, many innovative financing tools are being developed (crowdfunding platforms, local complementary currencies, etc.) to respond to a growing desire of local actors to become involved in environmental decisions and to reclaim the use of their investments in a more equitable economy. From this observation, we have been able to draw an empirical model of PES implementation based on a concrete case (Breton agribusiness) that works. On the other hand, if contract law allows a simple and flexible implementation of adequate agri-environmental actions, it implies: i) An upward collective logic around a territorial project ii) A match between explicit local supply and demand for environmental services (ES) iii) A regulator to organize the marketing of ES (place of negotiation, communication and information) iv) To assess the compatibility between private and public payments (WTO rules)
    Keywords: Environmental Economics and Policy
    Date: 2019
  2. By: Claxton, Karl; Asaria, Miqdad; Chansa, Collins; Jamison, Julian; Lomas, James; Ochalek, Jessica; Paulden, Mike
    Abstract: The primary focus of this paper is to offer guidance on the analysis of time streams of effects that a project may have so that they can be discounted appropriately. This requires a framework that identifies the common parameters that need to be assessed, whether conducting cost-effectiveness or benefit-cost analysis. The quantification and conversion of the time streams of different effects into their equivalent health, health care cost or consumption effects avoids embedding multiple arguments in discounting policies. This helps to identify where parameters are likely to differ in particular contexts, what type of evidence would be relevant, what is currently known and how this evidence might be strengthened. The current evidence available to support the assessment of the key parameters is discussed and possible estimates and default assumptions are suggested. Reporting the results in an extensive way is recommended. This makes the assessments required explicit so the impact of alternative assumptions can be explored and analysis updated as better estimates evolve. Some projects will have effects across different countries where some or all of these parameters will differ. Therefore, the net present value of a project will be the sum of the country specific net present values rather than the sum of effects across countries discounted at some common rate.
    Keywords: health
    JEL: I10 O10 O20
    Date: 2019–01–26
  3. By: Purnendra Jain
    Abstract: This paper analyses Japan’s motivation for supporting the high-speed rail (HSR or bullet train) project in India, its largest ever single-country Official Development Assistance (ODA) yen loan project. The paper explores the strategic underlay for Tokyo’s new thinking about ODA projects, centered on ‘quality’ infrastructure, and argues that by nature, scale, and location, the HSR project is an outstanding example of Japan’s contemporary strategic aid. Concerned with ‘comprehensive national security,’ this aid is mindful of Japan’s economic interests as well as its national security and defence. India’s rising economic potential as a huge future market has great appeal for Japan, but foremost it is India’s current strategic importance in the context of power shifts at Asian regional and global levels that steers Japan’s rising interest. The HSR project’s multiple strategic dimensions are also shaped powerfully by the moves of China, Japan’s key economic and strategic competitor. Since these circumstances heighten the strategic stakes for guiding the region’s infrastructure development, Japan’s HSR ODA project for ‘quality infrastructure’ in India provides new insights into not only the country’s current relationship with India, but also Tokyo’s broader thinking about strategic aid, especially through the ‘quality’ lens in its contemporary aid narrative.
    Keywords: Japan, ODA, Japan?India Relations, Quality Infrastructure, Bullet Train, Aid Politics, Strategic Aid.
    Date: 2019–03
  4. By: Jan Schnellenbach (Brandenburg University of Technology); Christian Schubert (Faculty of Management Technology, German University in Cairo)
    Abstract: We propose that policy-making in the realm of innovation policy can be fruitfully analyzed from the perspective of Behavioral Political Economy. Citizens, policy-makers and also bureaucrats are prone to biases that have been empirically identified in behavioral economic and psychological research. When applied to innovation policy, it can be shown that under certain conditions, policy-makers are willing to support riskier innovative projects and that this tendency is amplified by public sector incentives, such as soft budget constraints. The same holds for a tendency to support ongoing innovative projects even if their profitability becomes increasingly doubtful. Finally, we also highlight how special-interest policies aimed at distorting risk perceptions can slow down the innovation process.
    Keywords: Biases, Heuristics, Sunk Cost Fallacy, Availability Bias, Overconfidence, Loss Aversion
    JEL: O38 D72 D78 H11
    Date: 2019–02
  5. By: Shigute, Z.
    Abstract: Ethiopia’s Productive Safety Net Program (PSNP) is one of the world’s largest food security programs. The program supports chronically food insecure rural households and at the same time promotes long-term food security through the creation of rural infrastructure. While studies on the PSNP have examined various features of the program, there is limited knowledge on the quality and durability of infrastructure built through the program. Ensuring and maintaining the quality of local public goods built through the PSNP and similar social protection programs is a costly and recurring issue. Motivated by the long-term objective of the program, this paper analyses the role played by a key design feature of the PSNP, that is, its Community Based Participatory Watershed Development approach in influencing a project’s physical condition and its operational status. The paper is based on survey data and technical assessments provided by soil and water conservation engineers covering a sample of 249 Soil and Water Conservation (SWC) projects located in 53 watershed communities. The survey is complemented by qualitative information gathered through interviews and discussions. The location of multiple projects, with differing levels of participation in the same watershed communities permits estimation of the effects of community participation after controlling for community fixed effects. We find that projects in which beneficiaries play a larger role in project monitoring and evaluation are substantially less likely to be damaged and be in better operational condition. These results support the idea that community participation translates into more durable infrastructure.
    Keywords: Productive Safety Net Program, community participation, quality rural infrastructure, Ethiopia
    Date: 2019–03–29

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