|
on Project, Program and Portfolio Management |
| By: | Aude Farnault; Khalifa Sarr |
| Abstract: | This working paper provides an in-depth review of the opportunities and challenges surrounding water investment in Africa. It also presents the state of play in the use of ultimate sources of funding (the “3Ts”: tariffs, taxes, and transfers) and financing for water on the continent, showing that these sources are not currently being used to their full potential and in the most efficient and equitable way. In this context, there is a wide range of options to scale up and improve water finance in Africa and to achieve SDG 6 - and, by extension, all the Sustainable Development Goals - on the continent. This paper follows the lifecycle of a project, paying particular attention to equity and affordability. It presents concrete proposals to strengthen water policy investment frameworks, build well-prepared and investment-ready water projects, scale up risk mitigation instruments for water, and diversify financing instruments and sources. |
| Keywords: | Africa, economics, finance and investment, tariffs, taxes, transfers, water, water finance |
| JEL: | F30 G10 G20 H23 H54 H81 O13 Q21 Q25 Q28 O20 |
| Date: | 2024–08–23 |
| URL: | https://d.repec.org/n?u=RePEc:oec:envaaa:248-en |
| By: | Gollier, Christian |
| Abstract: | Because of risk aversion, any sensible investment valuation system should value less projects that contribute more to the aggregate risk. In theory, this is done by adjusting discount rates to consumption betas. But in reality, most public institutions use a dis-count rate that is rather insensitive to the risk profile of their investment projects. The economic consequences of the implied misallocation of capital are severe. I calibrate a Lucas model in which the investment opportunity set contains a constellation of projects with different expected returns and risk profiles. The model matches the traditional finan-cial and macro moments, together with the observed heterogeneity of assets’ risk profiles. The welfare loss of using a single discount rate is equivalent to a permanent reduction in consumption that lies somewhere between 15% and 45% depending upon which single discount rate is used. |
| Keywords: | Discounting; investment theory; asset pricing; carbon pricing; Arrow-Lind theorem; WACC fallacy; rare disasters; capital budgeting |
| JEL: | G12 H43 Q54 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:129648 |
| By: | Brückbauer, Frank; Kirschenmann, Karolin |
| Abstract: | Ongoing global trends like climate change require firms to invest in projects that support their transformation. In order to unlock the huge sums of private capital necessary for these investments, the engagement of institutional investors appears to be crucial. In a project funded by ZEW's Sponsors' Association, we investigate whether and how a better integration of the European banking system and capital markets can be an effective short- and medium-term solution to unleash the financial sector's potential in supporting the green transformation. Capital markets can support bank lending by financing assets on- and off-balance-sheet. Securitizations allow institutional investors to directly invest into cash flows from specific assets. Our analysis shows that the current market potential of European securitizations is much smaller than wished for and that the securitization model envisaged by the Capital Markets Union (CMU) project does not seem to fit the European context. Instead, policymakers should embrace a realistic view on the market potential of European securitizations. They also need to be clear in their communication about the trade-offs between unconventional central bank policies and the development of securitization markets. Additionally, they should closely watch the incentives that come with the new non-financial reporting indicators for banks regarding securitization. Most importantly, to accelerate the green transition, policymakers need to encourage the necessary private real investments in the first place by creating a conducive economic environment and the right incentives. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewpbs:300833 |
| By: | Gillian Oriol (AMU - Aix Marseille Université, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon, AMU IMPGT - Institut de management public et de gouvernance territoriale - AMU - Aix Marseille Université); Céline Du Boys (AMU - Aix Marseille Université, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon, AMU IMPGT - Institut de management public et de gouvernance territoriale - AMU - Aix Marseille Université); Edina Soldo (AMU IMPGT - Institut de management public et de gouvernance territoriale - AMU - Aix Marseille Université, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon, InCIAM - Institut de Créativité et d'Innovation d'Aix-Marseille Université, AMU - Aix Marseille Université) |
| Abstract: | Crises and shocks that shake territories are intensifying and are characterized by increasing frequency and uncertainty (Boin & Lagadec, 2000). Local authorities are on the front line to absorb these shocks and adapt to them. They are in charge of public policies in the fields of transport, waste management and urban planning, all of which pose challenges for the sustainability of territories (Bhagavathula et al., 2021). The heterogeneous and ambiguous nature of the pressures experienced at the local level thwarts pre-established procedures to address them and enhances the need for resilience. Resilience constitutes an innovative, integrative, and unifying approach (Tanguy & Charreyron-Perchet, 2013) where the role of the local authority is to bring actors together around common visions (Soldo, 2018) to meet challenges that require different expertise. Developing resilience capabilities at the organizational or territorial level helps to limit the effects of disruptions, shocks, or crises and promotes a strategic vision suitable to change and adaptation (Duchek, 2020; Williams, 2011). The multi-level nature of resilience implies an interaction between individual, organizational, and territorial levels (Altintas, 2020; Lengnick-Hall et al., 2011; Weick, 1993). Furthermore, the concept of dynamic capabilities, derived from the strategic management literature, provides a framework for understanding how individuals, organizations, or territories evolve despite constraints (Mendez & Mercier, 2006; Teece, 2007). Hence, we mobilize the notion of dynamic resilience capabilities, which we define as the ability to prevent crisis situations, maintain a level of functioning, recover from shocks, and learn from experiences thanks to a continuous reconfiguration of local resources and skills. Top managers influence the strategic choices of the organizations they lead (Hambrick & Mason, 1984), particularly because they are able to decide how to allocate and orchestrate resources (Adner & Helfat, 2003; Augier & Teece, 2009; Helfat & Martin, 2015). Thus, we state that the stance of leaders in the face of local challenges conditions the development of dynamic capabilities for territorial resilience and thus promotes the resilience of the territory. We sought to understand how a network of local authorities engages in the construction of a territorial resilience project. Since local governments have a hierarchical structure, we aim to understand the role of managers when considering and driving internal and external governance modes for enhancing local resilience and adaptation to potential crises. Between the months of June and November 2023, we conducted a comparative study of the cities of Lyon and Grenoble as well as their respective metropolitan areas. Thus, we performed fifty semi-structured interviews (Romelaer, 2005) with public managers (chief executives of local authorities and project managers) involved in change management. The interviews were fully transcribed and analyzed using the Nvivo 14 software. The two territories studied have distinct landscapes and specificities. However, both are faced with the climate urgency and have taken the initiative to strengthen their resilience. The political support and the internal commitment of public managers towards transition are strong. The initial results of this study revealed obstacles and levers in the development of the resilience project. Engaging in territorial resilience on two different administrative levels implies a different understanding of local issues. At the organizational level, this translates into difficulties working with other administrations (State, region, department, municipality). Internally, resilience implies the integration of all services, however the visions and goals of each unit do not always converge due to different priorities on the delegation's agenda. Faced with these challenges, project managers provide support to enhance the coherence of the resilience project. They are a key lever and demonstrate the need for highly qualified internal staff to strengthen organizational resilience. Both cities rely on their potentialities and resources to strengthen their resilience. They have an associative network, legal prerogatives, internal and external funding, and their respective workforce. They are innovative in resources management, as they created new spaces for consultation and collaboration among various actors. Concerning external stakeholders, examples include the citizens' convention on climate or the school of resilience. Internally, chief officers drive management fashions to include the whole organization's staff through proactive approaches, which enhances transversality. Public managers leverage on external pressures to bring about long-term changes, as it was observed with the energy crisis in winter 2022, which influenced public facilities management. |
| Keywords: | Dynamic capability for territorial resilience, Strategic territorial management, Public managers, dynamic capability for territorial resilience strategic territorial management public managers, dynamic capability for territorial resilience, strategic territorial management, public managers |
| Date: | 2024–04–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04647406 |
| By: | Timmermans, Oscar |
| Abstract: | This study examines the risk-taking properties associated with incentive plans that use relative performance evaluation, with a focus on the form of payout, whether in cash or shares. By analyzing determinants and consequences of payout form choice, I find that share-based plans offer risk-averse managers weaker incentives to pursue projects with idiosyncratic risk compared to cash plans. This occurs because share plans—unlike cash plans—expose managers to systematic performance trends, as payout values are linked to stock prices. Additionally, I document that the variation in risk-taking incentives depends on expected relative performance and the strength of the incentives. Overall, this study’s findings suggest that commonly used share-based relative performance plans might not always motivate managers to pursue innovative projects with high idiosyncratic risk when projects with systematic risk are available. |
| Keywords: | idiosyncratic and systematic risk; relative performance evaluation; cash bonuses; payout convexity; executive incentive-compensation |
| JEL: | G30 J33 M12 M41 |
| Date: | 2024–06–21 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123696 |
| By: | Sarah Peigné (G-SCOP - Laboratoire des sciences pour la conception, l'optimisation et la production - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Helmi Ben Rejeb (G-SCOP - Laboratoire des sciences pour la conception, l'optimisation et la production - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Elise Monnier (LITEN / CEA-DES - Laboratoire d'Innovation pour les Technologies des Energies Nouvelles et les nanomatériaux - CEA-DES (ex-DEN) - CEA-Direction des Energies (ex-Direction de l'Energie Nucléaire) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - INES - Institut National de L'Energie Solaire - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc - CNRS - Centre National de la Recherche Scientifique); Peggy Zwolinski (G-SCOP - Laboratoire des sciences pour la conception, l'optimisation et la production - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Abstract: | This paper examines the growing importance of eco-innovation in aligning sustainability with technological development. It explores the 'eco-design paradox, ' which emphasizes the tension between the need for flexible design and the availability of data required for assessing environmental impacts during early innovation stages. This paradox presents a challenge: the lack of detailed data can have an impact on the ability to make sustainable optimal design decisions as designs are still fluid. The study investigates the essential sustainability aspects to be evaluated in the initial phases of innovation and explores the involvement of decision-makers and entrepreneurs in the sustainability assessment process. The paper uses a robust action research methodology to examine various eco-innovation diagnostic tools in collaboration with two French Institutes of Technology (FITs). A comparative analysis is conducted to assess these tools' efficacity in evaluating several dimensions of sustainability, including environmental, social, and economic aspects. Our investigation identifies key criteria that are crucial for early-stage sustainability assessments, such as innovation description, systemic vision, functionality, and stakeholder involvement. The findings will guide policy makers, researchers and practitioners in the field of eco-innovation by providing a comprehensive framework for evaluating and promoting sustainable innovations in their early stages. The insights from our findings show how important expert knowledge is in the eco-innovation diagnostic process. They also demonstrate the need for more integrated approach to eco-innovation. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:cea-04662880 |
| By: | Bangsund, Dean A.; Hodur, Nancy |
| Keywords: | Community/Rural/Urban Development, Environmental Economics and Policy, Production Economics |
| Date: | 2024–08–21 |
| URL: | https://d.repec.org/n?u=RePEc:ags:nddaae:344617 |
| By: | Christos Giovanopoulos (Cultural H.ID.RA.N.T.) |
| Abstract: | The Cultural H.ID.RA.N.T project focuses on sustainable management of cultural and natural heritage in Chalandri (Athens), Greece. For additional information, see the [project overview](https://rsijournal.eu/wp-conte nt/uploads/CONF.2024.06.1.pdf). |
| Keywords: | Cultural Heritage, Sustainability, Management, H.ID.RA.N.T |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:bfb:cnfser:2024-5 |
| By: | Troncone, Massimo |
| Abstract: | This article argues that in a context of widespread clientelism and poverty, local public goods provision is a tool for mass patronage. Clientelistic incumbents under threat entice economically vulnerable voters into supporting the regime by creating jobs in the construction sector through infrastructural investments. The theory is tested using data on public works projects funded by the Cassa del Mezzogiorno, a massive place-based policy for the development of Southern Italy introduced after WWII. Empirically, I exploit within-politician shocks in competition induced by the electoral rule of the post-war Italian Senate. The results reveal that public works investments increase when Christian democratic senators are threatened in their own districts by the election of a communist senator, that this effect is particularly strong in areas characterized by low levels of employment, and that this distribution generates electoral returns. |
| Date: | 2024–07–26 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:rgz9t |
| By: | Ume, Chukwuma; Ume, Sunny |
| Abstract: | This study, conducted in Southeast Nigeria, investigates the impact of Smart Alternate Wetting and Drying (SAID) on sustainable rice farming, using a randomised controlled trial and focusing on water use efficiency and greenhouse gas emissions. The research involved a pilot project with 15 rice farms, categorized into three groups employing SAID, manual Alternate Wetting and Drying (AWD), and continuous irrigation methods. The results revealed that SAID led to a 30% reduction in water usage compared to continuous irrigation and significantly lowered methane emissions. These findings corroborate global research advocating for sustainable agricultural practices. The integration of digital technology in SAID resolved the limitations associated with manual AWD, potentially making agriculture more appealing to younger generations. This study not only confirms SAID's effectiveness in enhancing water conservation and reducing environmental impact but also suggests its applicability as a scalable solution for rice cultivation. The research supports the advancement of climate-smart agricultural technologies, which are crucial for addressing global challenges of water scarcity and environmental sustainability in farming. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:cfcp15:344260 |