nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2022‒10‒24
six papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Integrating Climate Change and Natural Disasters in the Economic Analysis of Projects By Stephane Hallegatte; Rubaina Anjum; Paolo Avner; Ammara Shariq; Michelle Winglee; Camilla Knudsen
  2. Lost in taxation By Jérome Massiani
  3. Global Lessons Learned for Urban Resilience and Regeneration Projects By World Bank
  4. Innovation Spaces as Drivers of Eco-innovations Supporting the Circular Economy: A Systematic Literature Review By Fédoua Kasmi; Ferney Osorio; Laurent Dupont; Brunelle Marche; Mauricio Camargo
  5. Economies of scale versus the costs of bundling in the procurement of highway pavement replacement By Ridderstedt, Ivan; Nilsson, Jan-Eric
  6. Profit Taxation, R&D Spending, and Innovation By Andreas Lichter; Max Löffler; Ingo E. Isphording; Thu-Van Nguyen; Felix Poege; Sebastian Siegloch

  1. By: Stephane Hallegatte; Rubaina Anjum; Paolo Avner; Ammara Shariq; Michelle Winglee; Camilla Knudsen
    Keywords: Environment - Climate Change Impacts Environment - Coastal and Marine Environment Environment - Drylands & Desertification Environment - Environmental Economics & Policies Environment - Forests and Forestry Environment - Natural Disasters Environment - Water Resources Management
    Date: 2021–06
  2. By: Jérome Massiani
    Abstract: Cost-Benefit Analysis (CBA) was developed to assess the net socioeconomic benefits of a wide variety of projects in many fields. In this context, it is relevant to investigate how this method is actually used for project evaluation, and whether its merits and limitations are properly understood by a wider community of economists. In this study, we showcase a debate that took place in Italy in 2019 about an important high-speed rail project, following the publication of a CBA that received much criticism. To learn from this episode, we find it useful to set up a meta-model of CBA that allows the formalisation of a large number of CBA calculations (including potentially ill-funded calculations) and to verify their validity. With this meta model, we review the criticisms formulated during the 2019 CBA debate focusing on two salient topics; whether CBA should include taxation and whether the Rule-of-Half measure of users’ surplus is valid. Our analysis suggests: (1) That the proposed meta-equation can help in structuring the scientific debate regarding CBA and the relevant economic discussion about a given project; (2) with few exceptions, the criticisms formulated regarding the 2019 CBA on these topics were incorrect, mostly incoherent from an axiomatic point of view. This indicates that ill-founded methods are at risk of becoming well-accepted in the larger community of economists, with the risk of lowering the general quality of policy recommendations formulated by economists. This underlines the need for economists to revise the misguided views of CBA.
    Keywords: Cost-Benefit Analysis, transport infrastructure, welfare function.
    Date: 2022–08
  3. By: World Bank
    Keywords: Urban Development - Hazard Risk Management Urban Development - Urban Economic Development
    Date: 2021–06
  4. By: Fédoua Kasmi (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Ferney Osorio (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Laurent Dupont (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Brunelle Marche (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Mauricio Camargo (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine)
    Abstract: This paper explores the way in which academics address the role of innovation spaces in the development of circular economy. Considering their characteristics, objectives and functioning, we assume that innovation spaces can be favorable environments for eco-innovations facilitating the implementation of circular economy strategies. To examine this hypothesis, this paper mobilizes a mixed research method based on bibliometric analysis of keywords and content analysis. The results show that these collaborative environments can: foster sustainable experimental learning, provide methodologies and tools for the co-creation of circular solutions, drive the transition towards sustainable smart cities, foster the creation of new sustainable business models, promote sustainable urban entrepreneurship and facilitate knowledge exchange on circular solutions. However, most of the reviewed literature focuses mainly on their impacts on sustainability and less on the concept of circular economy per se. Consequently, this work provides insights on the potential of these spaces in the circular strategies' implementation.
    Keywords: Systematic Literature Review,Sustainability,Innovation Spaces,Eco-Innovation,Circular Economy
    Date: 2022
  5. By: Ridderstedt, Ivan (Swedish National Road & Transport Research Institute (VTI)); Nilsson, Jan-Eric (Swedish National Road & Transport Research Institute (VTI))
    Abstract: Although most public procurements involve decisions concerning bundling there is only a limited body of empirical research guiding policy on this matter. In this paper, we examine the cost effects of pure bundling in the competitive tendering of highway pavement replacement with hot-mix asphalt. For this we use linear regression on data from a comprehensive sample of such contracts procured by the Swedish infrastructure manager (IM) during the period 2012–2015. We find that bundling affects the procurer’s cost in multiple and partly counteracting ways. Our results show that economies of scale are strong but diminishing and counteracted by costs of bundling and bundling related factors. Overall, the findings support Swedish IM’s current design of bundles but also suggest that most of the contracts are still inefficiently small. Whilst not perfectly generalizable to other markets, the findings provide some support the increased promotion and use of bundling of small-scaled road rehabilitation projects in the US. Two main implications of the results are that bundling policy should emphasize proximity and similarity rather than whether work is small-scale and that the scope for efficient bundling should be accounted for when optimizing the timing of pavement replacement.
    Keywords: Public procurement; Efficiency; Bundling; Grouping; Highway; Road work
    JEL: H57 R42 R48
    Date: 2022–10–07
  6. By: Andreas Lichter (DICE and HHU Düsseldorf); Max Löffler (Maastricht University); Ingo E. Isphording (IZA – Institute for Labor Economics); Thu-Van Nguyen (Stifterverband Essen); Felix Poege (Technology & Policy Research Initiative, Boston University and Max Planck Institute for Innovation and Competition); Sebastian Siegloch (University of Cologne)
    Abstract: We study how business taxes affect establishments’ R&D activities. Relying on geocoded panel data targeting the universe of R&D-active establishments in Germany, we exploit around 7,300 changes in the local business tax rate over the period 1987 2013 for identification. Using event study techniques, we find a sizable negative and statistically significant effect of an increase in the local business tax on establishments’ total R&D spending and patents filed. Zooming into the process of innovation production, we uncover substantial heterogeneity in the impact of business taxation for various R&D inputs, among establishment characteristics, and for different types of research projects.
    Keywords: corporate taxation, firms, R&D, innovation, patents
    JEL: H25 H32 O31 O32
    Date: 2022–09

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