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on Project, Program and Portfolio Management |
| By: | Gohdes, N.Nicholas; Simshauser, P.; Wilson, C. |
| Abstract: | Energy markets were designed to maximise productive, allocative and dynamic efficiency. Although renewables have become the dominant investment in deregulated energy markets, decarbonisation may not proceed at a pace consistent with the aspirations of policymakers. This has led governments in a number of jurisdictions to prime markets through ‘Contracts for- Differences’ (CfDs) or Power Purchase Agreements (PPAs), thus bringing forward investment and decarbonisation efforts. The war in Ukraine and its adverse impact on energy prices only emphasises a sense of urgency on an energy security dimension. Variable Renewable Energy (VRE) projects in Australia are typically underpinned by run-of-plant PPAs, but an emerging trend has been rising number of semi-merchant projects whereby some level of spot market exposure is retained. In this article, we examine how and why the semi-merchant investment model has arisen along with the minimum contracted coverage for a bankable project financing. Results reveal for investors with a target of 60-65% debt within the capital structure, a revenue mix comprising 73-78% PPA coverage and 22-27% merchant plant exposure is viable and a tractable project financing. For policymakers seeking to elicit 5000 MW of VRE plant capacity, the auction need only offer ~3800MW of CfD’s capacity, which has the benefit of reducing taxpayer exposures (cf. on-market transactions). |
| Keywords: | PPAs, Renewable Energy, Counterparty Credit, Project Finance, Cost of Capital |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2334&r=ppm |
| By: | Liam Welsh; Sebastian Jaimungal |
| Abstract: | In response to the global climate crisis, governments worldwide are introducing legislation to reduce greenhouse gas (GHG) emissions to help mitigate environmental catastrophes. One method to encourage emission reductions is to incentivize carbon capturing and carbon reducing projects while simultaneously penalising excess GHG output. Firms that invest in carbon capturing projects or reduce their emissions can receive offset credits (OCs) in return. These OCs can be used for regulatory purposes to offset their excess emissions in a compliance period. OCs may also be traded between firms. Thus, firms have the choice between investing in projects to generate OCs or to trade OCs. In this work, we present a novel market framework and characterise the optimal behaviour of GHG OC market participants in both single-player and two-player settings. We analyse both a single-period and multi-period setting. As the market model does not elicit a closed form solution, we develop a numerical methodology to estimate players' optimal behaviours in accordance to the Nash equilibria. Our findings indicate the actions players take are dependent on the scale of their project opportunities as well as their fellow market participants. We demonstrate the importance of behaving optimally via simulations in order to offset emission penalties and the importance of investing in GHG reducing or capturing projects from a financial perspective. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.01427&r=ppm |
| By: | Marco Di Cataldo (Department of Economics, Ca’ Foscari University of Venice; Department of Geography and Environment, London School of Economics); Elena Renzullo (Department of Economics, Ca’ Foscari University of Venice; Department of Geography and Environment, London School of Economics) |
| Abstract: | The EU Cohesion Policy, with its ability to influence the socio-economic trajectories of European regions and cities, also has the potential to shape the political preferences of citizens. While some evidence exists regarding the impact of EU funds on national electoral outcomes, their role for local elections remains largely unexplored, overlooking the inherently territorial nature of Cohesion Policy and the pivotal role played by local policymakers in its activation and implementation. This study leverages detailed administrative data on European development projects to investigate the impact of EU funds on the political support for local incumbent politicians in Italy. It studies the relationship between the inflow of European funds and the probability of re-election for Italian mayors, considering different project types that reflect the mayors’ ability to attract European funds. The results reveal that Cohesion Policy plays a critical role in shaping local voting behaviours. Larger and more visible projects significantly increase the chances of mayoral re election. Moreover, local contexts characterised by faster growth, where EU projects effectively improve municipal public services, witness the greatest electoral gains for incumbents. These results underscore the importance of the design, visibility, and effectiveness of local development projects in determining the political impact of EU redistributive policies. |
| Keywords: | EU Cohesion Policy, incumbent re-election, political preferences, redistribution, local voting behaviour |
| JEL: | D72 I38 H7 R58 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2024:02&r=ppm |
| By: | Ziyang Chen; Maggie Rong Hu; Ginger Zhe Jin; Qiyao Zhou |
| Abstract: | This paper provides the first theory and evidence on the role of presale policies in the residential housing market. We start with constructing a novel dataset of unfinished projects, presale policies, and land auction outcomes across 270 major cities in China. We then identify 2, 330 unfinished residential projects from 2010 to 2017 on a citizen complaint website run by the central government. We find that both presale criterion and postsale supervision of construction costs relate to a lower probability of unfinished projects. But only presale criterion relates negatively to the pace of new housing development, measured by developers' multitasking and land auction outcomes. A back-of-the-envelope calculation suggests that the average bundle of presale policies is inferior to the Pareto frontier in our sampled cities. Tightening the regulation on postsale supervision by 2 standard deviations may lead to a 58% reduction in the occurrence of unfinished projects, while keeping the pace of new housing development unchanged. Eliminating unfinished projects would entail a drastic increase in both presale criterion and postsale supervision, with slower housing development. |
| JEL: | D22 D82 H7 K23 L52 L78 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32013&r=ppm |
| By: | Juan S. Mora-Sanguinetti (Banque de France - Eurosystème and Banco de España - Eurosistema); Andrés Atienza-Maeso (Universidad Carlos III and Banco de España - Eurosistema) |
| Abstract: | The achievement of an environmentally sustainable growth model, the development of renewable energies or the adoption of energy efficiency measures are nowadays fundamental issues in economic analysis and are a substantial part of the public debate. However, while there may be an increased social awareness of these issues, a different question is at what pace these social concerns have been translated into regulation, fostering or hindering the development of new markets or “green” technologies. This paper proposes a rigorous empirical study identifying and quantifying, through text analysis, all regulations related to four different subject blocks associated with “green growth” (renewable energies, sustainable transportation, pollution and energy efficiency), issued by Spanish national or regional governments over the period 2000-2022. This research thus constructs a database in panel data format. Among other results, we identify 3, 482 regulations related to renewable energies, 783 regulations dealing with sustainable transportation, 108 on pollution management and 5, 116 related to the measurement (and management) of energy efficiency. The results show that regulation is diverse by subject matter, reflects significant regional diversity and has increased over time, especially in more recent years, after a certain standstill during the Great Recession. This database could help develop future research projects on the impacts of “green” regulation on certain economic or institutional variables (such as “green” innovation or environmental conflict). The paper concludes with a comparison of renewable energy regulation in France and Spain, also based on text analysis. Spain shows a higher and more disaggregated volume of regulation. |
| Keywords: | energy efficiency, renewable energies, sustainable transport, pollution, regulation, regulatory complexity, text mining |
| JEL: | K32 Q5 O13 O44 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2336&r=ppm |
| By: | Ilma Nurul Rachmania ("School of Business and Management, Bandung Institute of Technology, 40116, Bandung, Indonesia" Author-2-Name: Gatot Yudoko Author-2-Workplace-Name: "School of Business and Management, Bandung Institute of Technology, 40116, Bandung, Indonesia" Author-3-Name: Mursyid Hasan Basri Author-3-Workplace-Name: School of Business and Management, Bandung Institute of Technology, 40116, Bandung, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | " Objective - The concept of the service ecosystem is gaining recognition in the academic community of management scholars. In this context, the discussion revolves around service-dominant logic, where the focus shifts to the value derived from service and relationships in the broader ecosystem. Therefore, this study aimed to explore the phenomena of healthcare access and how to navigate the service ecosystem to enhance healthcare accessibility management. Methodology - The qualitative method was used with a case study design across two private primary care facilities in West Java. Results - The results showed that challenges related to healthcare access were prevalent in developing countries, including Indonesia. However, there was a significant potential for innovation to achieve improvements. The results underscored the crucial need for collaborative efforts from multiple sectors and critical stakeholders. Novelty - The novelty of this study lies in the adoption of an ecosystem perspective, accentuating the significance of value co-creation through collaborative efforts among interconnected actors. The results also contributed to a more comprehensive understanding of healthcare accessibility management in developing countries, offering insights that could inform strategies for fostering a more equitable and inclusive healthcare service management. Type of Paper - Empirical" |
| Keywords: | Healthcare Access, Service Ecosystem, Value Co-Creation, Healthcare Services, Primary Care |
| JEL: | I11 M15 D63 I12 I13 |
| Date: | 2023–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jmmr325&r=ppm |