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on Project, Program and Portfolio Management |
| By: | Andrey Leonidov; Ilya Tipunin; Ekaterina Serebryannikova |
| Abstract: | The purpose of the study is to propose a methodology for evaluation and ranking of risky investment projects.An investment certainty equivalence approach dual to the conventional separation of riskless and risky contributions based on cash flow certainty equivalence is introduced. Proposed ranking of investment projects is based on gauging them with the Omega measure, which is defined as the ratio of chances to obtain profit/return greater than some critical (minimal acceptable) profitability over the chances to obtain the profit/return less than the critical one.Detailed consideration of alternative riskless investment is presented. Various performance measures characterizing investment projects with a special focus on the role of reinvestment are discussed. Relation between the proposed methodology and the conventional approach based on utilization of risk-adjusted discount rate (RADR) is discussed. Findings are supported with an illustrative example.The methodology proposed can be used to rank projects of different nature, scale and lifespan. In contrast to the conventional RADR approach for investment project evaluation, in the proposed method a risk profile of a specific project is explicitly analyzed in terms of appropriate performance measure distribution. No ad-hoc assumption about suitable risk-premium is made. |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2005.12173&r=all |
| By: | Robalino, David A. (World Bank); Romero, Jose M. (World Bank); Walker, Ian (World Bank) |
| Abstract: | Governments often aim to influence the amount and sectoral allocation of private investments through explicit or implicit subsidies. The rules used to select projects to benefit from subsidies may vary, depending on the policy objective. This paper develops a general framework to allocate subsidies to private investments in the presence of jobs-linked externalities (JLEs). JLEs emerge when wages exceed the opportunity cost of labor (labor externalities), or when there are social gains from creating better jobs for some classes of worker, such as women or youth (social externalities). Like all externalities, JLEs create a gap between private and social rates of return. Investments can be socially profitable (once the corresponding JLEs are internalized) but the private returns may be too low for the firm to go ahead. JLEs help to explain why many developing countries see insufficient investment in projects that would reallocate labor towards better jobs. The concept of JLEs is well established in economic literature, but there is a need for better operational approaches to address them. Like other externalities, JLEs can be corrected using a variety of possible subsidies (such as: grants, subsidized infrastructure, credit, training, technical assistance and tax exemptions). But doing this efficiently and at scale this requires mechanisms to (a) estimate the value of the externality and (b) discover the amount of subsidy needed to trigger the private investment. This paper shows that the optimal way to allocate subsidies to offset JLEs is through a competitive bidding process which selects projects based on the estimated amount of JLEs per dollar of subsidy. The bidding process provides an incentive to investors to reveal the subsidy needed for a project to become privately viable. We show that the proposed approach maximizes the jobs impacts of a given amount of fiscal resources that has been allotted to support better jobs outcomes |
| Keywords: | job creation, entrepreneurship, cost-benefit analysis, economic rates of return, social rates of return, social externalities, labor externalities, jobs-linked externalities, economic analysis, investment subsidies, investment incentives, competitive bidding |
| JEL: | J38 D61 D62 L26 O22 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13373&r=all |
| By: | Phoebe Koundouri; Lydia Papadaki; Alice Guittard (ICRE8); Elias Demian; Ebun Akinsete (ICRE8) |
| Abstract: | The Mediterranean Sea is a top tourism destination in the world hosting more than 320 million tourists a year but it's also one of the most affected areas by marine litter worldwide, polluting its shores and pristine coastal waters. Marine litter is estimated to cause an annual economic loss of � 61.7 million to the EU fishing fleet because of reduced catch and damage to vessels, while polluted beaches can discourage tourists with consequent job losses in the sector. In this chapter , two projects funded by EIT Climate-KIC (2020) are being presented. The BL.EU. Climate project addressed the challenge of plastic marine littering in southern European waters by building capacity in three Mediterranean countries: Greece, Portugal and Croatia. The project is identifying the plastic marine littering issue at the very beginning of its life cycle, and on the prevention side that can lead to plastic waste reduction and in consequence reducing carbon emissions from both production and waste management stages. The MEDfreeSUP project aims to set replicable voluntary protocols for free single-use plastics food packaging adoption for cafes, restaurants, foods stores, hotel, beach facilities, but also public events and public places in three Mediterranean countries: Greece, Italy and Croatia. The project, which is ongoing, provides support and guidance to local business to comply with the EU SUP Directive and to engage Mediterranean islands and cities in the transition toward a free single-use plastic environment. This chapter presents the key findings and challenges of these projects dealing the impact of single use plastics in Greece, which is one of the projects' countries. |
| Keywords: | plastic pollution, marine litter, single use plastics, Climate-KIC |
| Date: | 2020–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2024&r=all |
| By: | Marian Stuiver; Sander van den Burg; Wenting Chen; Claire Haggett; David Rudolph; Phoebe Koundouri |
| Abstract: | Shared multi-use of ocean space is associated to overcoming several complex technical, regulatory, financial, environmental and socio-economic problems. In achieving this goal several stakeholders of relevance need to participate in the design and implementation of multi-use platforms. This chapter reviews and discuss the participatory approaches employed in the MERMAID and TROPOS projects. The discussion draws on the methods employed in each case, the objectives and obstacles encountered resulting in useful conclusions for participatory design. |
| Keywords: | MERMAID, TROPOS, multi-use platforms, stakeholder engagement |
| Date: | 2020–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2019&r=all |
| By: | Phoebe Koundouri; Vassiliki Manoussi; Lydia Papadaki |
| Abstract: | Science and technology offer an opportunity to reconcile the protection of marine ecosystems with the development of sustainable maritime activities, through an integrated maritime policy. In this context, the European Commission has developed a strategy with the aim of proposing means for better integrating marine research with maritime research. To achieve this, the EU increases the integration between established research disciplines and improves cooperation between all the stakeholders concerned with seas and oceans. This book focuses on results of thirteen projects funded by the European Commission. These projects propose concrete measures and mechanisms to improve the efficiency and excellence of marine and maritime research in order to address the challenges and opportunities presented by the oceans and seas. This opening chapter provides an introduction to these projects by first reviewing the goals, partners, methodology and objectives of the each of the projects. |
| Keywords: | Marine ecosystems, Maritime activities, Sustainable oceans, Deep Demonstration, Multi-use offshore platforms, Marine Protected Areas |
| Date: | 2020–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2017&r=all |
| By: | Saul Torres-Ortega; Pedro Diaz-Simal; Fernando Del-Jesus; Raul Guanche; Phoebe Koundouri |
| Abstract: | The Oceans of Tomorrow (FP7-OCEAN) initiative aimed to foster multidisciplinary approaches between different economic and scientific sectors and disciplines, maintaining a common focus on marine and maritime challenges. Under this umbrella, three projects were developed focusing on the development of multi-use offshore platforms: H2Ocean, TROPOS and MERMAID. The development of all these three projects included the design of different concepts in terms of study cases and application of the main findings of the projects. The financial aspect of these design concepts was carried out in all projects, but the assumptions made to perform this analysis were quite different among the projects. Although none of the Oceans of Tomorrow projects had the objective to produce a viable proposal from the economic point of view, it is necessary to analyse the possibilities of the concepts developed. A common methodology and parameters need to be used in order to achieve a constancy and homogeneity that allows comparing the results. This chapter defines a common financial framework that permits to obtain comparable results of the financial performance of the different design concepts proposed in the Oceans of Tomorrow projects. |
| Keywords: | H2Ocean, TROPOS, MERMAID, financial framework, multi-use offshore platform |
| Date: | 2020–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2020&r=all |
| By: | Phoebe Koundouri; Lydia Papadaki |
| Abstract: | This chapter summarizes the concluding remarks and recommendations based on the analysis presented in the previous chapters. The chapters of this book capture a wide spectrum of sustainable (e.g. economic, societal and environmental) challenges related to the Seas presenting critical outcomes of marine and maritime research. The analysis in chapters 2 to 5 showed that MUOPs can potentially benefit from each other in terms of infrastructure, maintenance etc. It is clear that the main sources of uncertainty about the viability of the projects are coming from the lack of precise knowledge on the operational conditions of the technology. In this context, MERMAID's assessment tool provided researchers with an intuitive way to evaluate multiple scenarios that would be hard and time-consuming to assess manually. Chapter 6 presents novel IT applications, which can facilitate producers to engage in the technology race and chapter 7 sheds light to the source-to-sea concept, which bridges the chasm for a better integration, cooperation and coordination of activities from the rural area until the ocean aiming at a harmonized and sustainable land-sea are. Chapter 8 focuses on Marine research supporting that CES valuation can become an extremely useful tool that can bring to the surface the benefits derived from the cultural aspects of MPAs, while chapter 9 depicts the key challenges of plastic marine litter. From the analysis carried out in Chapters 10 and 11, it is clear that the maritime transport sector including ports not only are driving up global temperature but are essential part of the global economies. Ports role will be crucial in the law enforcement through reward schemes and priority entrance to ships complying with International and European regulation. Chapter 12 presents the circular economy approach, which can solve most of the challenges analysed in the previous chapters, and the synergies with the Smart Specialisation Strategies. All chapters underline the need for explicit targets and financial plans to be designed aiming at the implementation of ambitious climate and ocean related targets. |
| Keywords: | socio-economic methodology, participatory approaches, financial analysis, web-based tool, marine, maritime, sustainable development, marine litter, policy recommendations, sustainable oceans |
| Date: | 2020–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2027&r=all |