nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2023‒02‒27
six papers chosen by
Arvi Kuura
Tartu Ülikool

  1. The long-term effects of self pledging in reward crowdfunding By Tobias Regner; Paolo Crosetto
  2. Tools and Best Practices for Land Use Efficiency and Equity in Cities By Nguyen, Peter; Barajas, Jesus M
  3. Impacts of the Great Green Wall projects on children’s health: Evidence from Nigeria By Pauline Castaing; Antoine Leblois
  4. Country Practices in Project Aid Taxation: Benin, Cameroon and Kenya By Emilie Caldeira; Anne-Marie Geourjon; Grégoire Rota-Graziosi
  5. Exploring the cost-effectiveness of energy efficiency implementation measures in the residential sector By Fateh Belaïd; Zeinab Ranjbar; Camille Massié
  6. NPV, IRR, PI, PP, and DPP: A Unified View By Mikhail Sokolov

  1. By: Tobias Regner (Friedrich-Schiller-Universität = Friedrich Schiller University Jena [Jena, Germany]); Paolo Crosetto (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)
    Abstract: Crowdfunding recently emerged as an alternative funding channel for start-ups, creative artists and social endeavors. While it succeeded in establishing itself as a major player in entrepreneurial finance, its rather informal setup sparked concerns about its resilience to exploitative behavior by project creators. In this paper we explore one form of such opportunistic behavior: self pledging and its potential effect on the post-campaign development of crowdfunded projects. If project creators use own funds to reach the funding target in order to collect the crowd's funds, they end up with less fresh capital than needed, and might hence face problems in delivering on the promises made. Most reward crowdfunding platforms explicitly prohibit self pledges. Startnext, the biggest German platform, allows them. We exploit Startnext data to shed light on effects of self funding on post-campaign performance. We single out 140 substantially self-funded projects, and, by propensity score matching, a corresponding sample of 140 projects that did not receive any self pledges. For each of these projects we collect information about the project development three or more years after their campaigns ended. Projects may have failed to deliver, have run into severe delays, have delivered but then disappeared, or might have given rise to recurring events or led to the founding of a company/organization. Results indicate no structural long-term impact of substantial self funding.
    Keywords: Crowdfunding, Entrepreneurial finance, Self funding, Survival, Long-term viability
    Date: 2021–04
  2. By: Nguyen, Peter; Barajas, Jesus M
    Abstract: Lowering vehicle miles traveled (VMT) to meet greenhouse gas reduction targets through land use and transportation planning and investments is a primary goal of planning organizations in California. This report provides information about the landscape of methods and tools available to regional and local governments to evaluate the land use efficiency and equity within their jurisdictions. This study draws on an evaluation of web-based tools for analyzing VMT generation, gentrification, and equity, and a stakeholder workshop to identify promising practices and opportunities for improvement with respect to planning tools to support land use efficiency. Most of the 11 tools analyzed were easy to use, providing ease of navigation and interactive, intuitive interfaces. Some were static with minimal or no documentation to help understand how to use them. None of the tools reviewed addressed all three issues of VMT generation, gentrification, and equity that were the focus of the study. However, the three tools addressed VMT and equity together were intuitive to use and provided multiple indicators for which to visualize outcomes relevant to VMT and equity. Stakeholders from metropolitan planning organizations (MPOs), city governments, and county governments discussed and gaps of existing land use efficiency tools and the potential need for a new tool development or improvements to existing tools. Participants saw the value of existing quantitative mapping tools supporting their evaluations of proposed planning projects as well as helping to facilitate conversations among staff about the impacts and potential VMT or greenhouse gas emissions reductions. Key gaps included transferability of data and analyses across scales and limited data available for rural areas. Participants saw the need for a new tool that could integrate localized data with statewide data. The findings can inform interagency collaboration around equity analysis and tool development. View the NCST Project Webpage
    Keywords: Engineering, Social and Behavioral Sciences, Transportation equity, planning tools, land use, VMT, gentrification
    Date: 2023–02–01
  3. By: Pauline Castaing (CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne); Antoine Leblois (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier)
    Abstract: The Great Green Wall is a crosscountry initiative to improve the environment of desertification areas in Sub-Saharan Africa. This paper refers to the implementation of Great Green Wall projects in Nigeria to document the local impact of environmental restoration on children's food security and health. Our identification strategy uses two types of variation to capture these effects. The spatial variation comes from the heterogeneous exposure of the children to these new environmental restoration programs. The temporal variation comes from sudden changes between 2013 and 2016. Taking the height-to-age z-score as main outcome of interest, we find a significant and robust health improvement for children living next to community-based orchards whereas proximity to shelterbelts generates mixed impacts. Gains in health (+0.5 standard deviation in the height index) coexist with higher dietary diversity score for children living near orchards.
    Keywords: Environmental Restoration, Food security, Nigeria, Nutrition, Impact evaluation
    Date: 2023–01–26
  4. By: Emilie Caldeira (CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne); Anne-Marie Geourjon (FERDI - Fondation pour les Etudes et Recherches sur le Développement International); Grégoire Rota-Graziosi (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique, FERDI - Fondation pour les Etudes et Recherches sur le Développement International)
    Date: 2022–12
  5. By: Fateh Belaïd (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Zeinab Ranjbar; Camille Massié (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This research investigates the cost-effectiveness of energy performance measures in French residential buildings. We develop an empirical approach based on a multivariate statistical approach and Cost-Benefit analysis. The strength of this research relies on the designing of a large cross-sectional database collected in 2013 including rich technical information of about 1, 400 dwellings representative of the French residential sector as well as individual recommendations relative to the energy renovations to be implemented, their investment costs, and energy savings potential. We provide valuable information on the cost-effectiveness of energy renovation measures for the entire housing stock. Results show that low-temperature and condensing boilers, as well as floor insulation, are the most cost-effective energy efficiency measures, which could be inconsistent with actual subsidy policies. We demonstrate that the cost-effectiveness of energy renovation measures is widely dependent on dwelling initial characteristics and the value of the inputs used in the economic indicators such as energy-savings amount, energy price, and the discount rate. Moreover, we provide a classification of French dwellings, which may help policymakers, better identify their target. Finally, we show that the renovation of the entire French residential dwelling stock can lead to a great amount of energy–and CO2–reductions but requires significant financial capacity.
    Keywords: Energy efficiency, Cost-benefit analysis, Energy demand, Multiple correspondence analysis, Monte Carlo simulation, Energy policy
    Date: 2021–03
  6. By: Mikhail Sokolov
    Abstract: This paper introduces a class of investment projectÕs profitability metrics that includes the net present value criterion (which labels a project as weakly profitable if its NPV is nonnegative), the internal rate of return (IRR), the profitability index (PI), the payback period (PP) and its discounted counterpart (DPP) as special cases. An axiomatic characterization of this class, as well as of the mentioned conventional metrics within the class, is presented. This approach is useful at least in three respects. First, it suggests a unified interpretation for profitability metrics as measures of financial stability of a project with respect to a collection of scenarios of economic environment. Second, it shows that, with the exception of the NPV criterion, a profitability metric is necessarily incomplete (i.e., there are incomparable projects). In particular, this implies that any extension of the IRR to the space of all projects does not meet a set of reasonable conditions. A similar conclusion is valid for the other mentioned conventional metrics. For each of these metrics, we provide a complete characterization of pairs of compatible projects and describe the largest subset of projects to which the metric can be unambiguously extended. Third, it determines the conditions under which the use of one metric is superior to the others.
    Keywords: Capital budgeting, Net present value, Internal rate of return, (Discounted) payback period, Profitability index
    JEL: G11 G31
    Date: 2023–02–07

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