nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2023‒04‒03
six papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Starting small in project choice: A discrete-time setting with a continuum of types By Hua, Xiameng; Watson, Joel
  2. Is the Physical Infrastructure in Pakistan Enough to Attract Foreign Direct Investment By Shahid, Kunwer Arsalan
  3. Contract Design for Storage in Hybrid Electricity Markets By Billimoria, F.; Simshauser, P.
  4. BMF Collaborative Project 11: Transformation efforts’ impacts on entrepreneurs’ success likelihood By Mindsponge, AISDL
  5. Mega Solar Project & Amendment In NEPRA Distributed Generation & Net-Metering Regulation, 2015 By Maria Ali
  6. Eco-friendly Cooperative Traffic Optimization at Signalized Intersections By Hao, Peng; Oswald, David; Wu, Guoyuan; Barth, Matthew J

  1. By: Hua, Xiameng; Watson, Joel
    Keywords: Project choice, Principal-agent, Renegotiation, Starting small, Gradualism, Perfect Bayesian equilibrium, Economic Theory, Other Economics
    Date: 2022–09–01
  2. By: Shahid, Kunwer Arsalan
    Abstract: One suitable way for Pakistan to develop its infrastructure can be attracting FDI in infrastructure development and maintenance. The developing world needs a massive increase in private sector involvement in infrastructure investments. Although after 2000 Pakistan has realized and focused on the opportunity, driven by foreign direct investment, areas that had traditionally been defined as public sector responsibilities benefited from substantial commitments of capital and resources. The World Bank Project Database indicates that an estimated total of 1, 707 private infrastructure projects worth US$458.2 billion were concluded from 1990 to end-1998. Foreign direct investment is the engine behind this development, with foreign investors involved in over 80 percent of transactions. During this period developing countries received an estimated US$138.3 billion in foreign direct investment from these infrastructure investments. Supported by a strong policy framework, private sector financing and operation of infrastructure facilities can result in significant efficiency gains while alleviating budgetary pressures. There is a startling gap between, allegedly, globalization-induced changes in international competition for foreign direct investment (FDI) and recent empirical evidence on the relative importance of determinants of FDI in developing countries. Traditional market-related determinants are still dominant factors. This paper analyzes the role of infrastructure availability in determining the attractiveness of countries for FDI inflows for export-orientation of MNE production. We posit that investments by governments in providing efficient physical infrastructural facilities improve the investment climate for FDI. MNEs may be particularly sensitive to infrastructure availability for locating their investments designed to feed the global, regional or home country markets. E.g. Transport infrastructure, telecommunications infrastructure, information infrastructure, energy availability for countries. The role of infrastructure in explaining the attractiveness for foreign production by MNEs, MNEs’ decision making pertaining to location of product mandates for global or regional markets sourcing is significantly influenced from infrastructure availability considerations. These findings suggest that infrastructure development should become an integral part of the strategy to attract FDI inflows in general, and export-oriented production from MNEs in particular.
    Keywords: FDI
    JEL: E0
    Date: 2022–12–24
  3. By: Billimoria, F.; Simshauser, P.
    Abstract: Challenges to the term financing of standalone storage in energy-only electricity markets relate to the difficulty of obtaining long-tenor contracts given multiple volatile revenue streams. Government and central agency-initiated contracting and procurement of storage has garnered interest as a means of catalysing adoption and learning curve effects, particularly given the required scale and pace of the decarbonisation objective. Given the complexity of storage operations and multiple streams of value, standard contract forms are yet to emerge. While there is flexibility in the design of forward contract arrangements, flow on effects of design on incentive compatibility in dispatch, risk-trading and investment represent a critically important avenue of investigation. This article establishes six principles for government-initiated contracting and examines the incentive compatibility of storage contract designs. We find that that preferences for structural simplicity in contract design could introduce incentive incompatibility without careful consideration of the interactions between storage operations and investment.
    Keywords: Electricity markets, risk trading, project finance, renewables, energy storage
    Date: 2023–03–06
  4. By: Mindsponge, AISDL
    Abstract: The present study explores how entrepreneurs’ business-related knowledge and learning from other failures affect their success likelihood in relation to their willingness to transform ways of thinking, acting, or beliefs.
    Date: 2023–02–04
  5. By: Maria Ali (Pakistan Institute of Development Economics)
    Abstract: The Quaid-e-Azam Solar Power Park was designed and built at the incorrect location. Bahawalpur’s climate is not suitable for the project. The temperature rises above 45 degrees Celsius, which does not produce the required amount of electricity. The project was designed to project 1000 MW of energy; however, up until this point, it has only generated 400 MW.
    Date: 2022
  6. By: Hao, Peng; Oswald, David; Wu, Guoyuan; Barth, Matthew J
    Abstract: Surface transportation systems (e.g., arterial roadways with signalized intersections) are inherently inefficient, particularly at higher traffic volumes. In general, both the infrastructure (e.g., traffic signals) and the vehicles operate independently, with little coordination between them. Previous research has shown that implementing strategies that take advantage of infrastructure-tovehicle communication can improve overall mobility and reduce environmental impacts, e.g., the Eco-Approach and Departure (EAD) application that takes advantage of communicating signal phase and timing information to the vehicles. In this paper, the authors build upon this past research to develop a new cooperative traffic operation approach that takes advantage of not only infrastructure-to-vehicle communications, but also vehicle-to-infrastructure communications. This effort integrates a dynamic traffic signalization algorithm together with EAD algorithm to achieve even greater traffic efficiency. The research was carried out in a high-fidelity simulation environment and shows upwards of 15% fuel savings and 85% reductions in waiting time. View the NCST Project Webpage
    Keywords: Engineering, Physical Sciences and Mathematics, Cooperative traffic optimization, eco-approach and departure, SUMO, traffic simulation, vehicle-to-infrastructure communication
    Date: 2023–02–01

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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.