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on Project, Program and Portfolio Management |
| By: | Eoin F. McGuirk; Nathan Nunn |
| Abstract: | We study the consequences of a clash between contemporary development initiatives and traditional economic practices in Africa. Crop agriculture has expanded considerably across the continent in recent years. Much of this expansion has occurred in traditionally pastoral areas, where land is typically managed according to customary arrangements. This is believed to be a major cause of conflict between pastoral and agricultural ethnic groups. We test this hypothesis using geocoded data on agricultural development projects across Africa from 1995-2014. We find that implementing agricultural projects in traditionally pastoral areas leads to an almost two-fold increase in the risk of conflict. We find no equivalent effect for agricultural projects implemented in traditionally agricultural areas, nor for non-agricultural projects implemented in either location. We also find that this mechanism contributes to the spread of extremist-religious conflict in the form of jihadist attacks. The effects are muted when agricultural projects are paired with pastoral projects. This is more likely to occur when pastoral groups have more political power. Despite these effects on conflict, we find that crop agriculture projects increase nighttime luminosity in both agricultural and pastoral areas. Evidence from survey data suggests that the gains in pastoral areas are concentrated in non-pastoral households. Our findings indicate that "development mismatch"---i.e., imposing projects that are misaligned with local populations---can be costly. |
| JEL: | O1 P0 Q10 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33191 |
| By: | Russo, Suzanne (Resources for the Future); Holmes, Brandon (Resources for the Future) |
| Abstract: | The need to transform the energy infrastructure of the United States to support a low-carbon economy will bring extensive development opportunities and challenges to communities, particularly those in the vicinity of existing oil and gas installations. These frontline communities are the most likely to also host new large clean energy projects, such as the Department of Energy (DOE) Regional Clean Hydrogen Hubs and Carbon Capture and Storage facilities (The White House, 2023; Musick et al., 2023).The process of energy redevelopment to meet ambitious climate targets will attract tens of billions of dollars in private and public investment over the coming decades, with capital already deployed through the Biden-Harris administration’s Inflation Reduction Act and Bipartisan Infrastructure Law (De La Garza, 2022; US Department of Energy, 2022). Local residents are often economically dependent on the fossil fuel industry for direct employment, local tax revenue, and spillover demand supporting local restaurants, shops, and other small businesses (Kaufman, 2024). However, fossil fuel communities can suffer social and environmental harms from new energy infrastructure (Resources for the Future, 2021). Neighborhoods adjacent to oil and gas wells and refineries, for example, have been disproportionately exposed to harmful air and water pollution for decades, resulting in lower public health outcomes (Proville et al., 2022). The section of the Lower Mississippi River in Louisiana between Baton Rouge and New Orleans has earned the infamous nickname Cancer Alley because of the more than 200 fossil fuel installations located there, which are responsible for a quarter of domestic petrochemical production (Castellón, 2021).Low-income people of color often constitute a significant demographic in fossil fuel communities (Donaghy et al., 2023). A 2024 paper found that Black Americans are three-quarters more likely than all other racial groups, on average, to reside near polluting sites, and more than one million Blacks live less than half a mile from a petrochemical plant (McCoy, 2022). Historically, disadvantaged communities have lacked the bargaining power to ensure that infrastructure developers invest in local economies as part of their projects and to hold industry accountable for pollution and other environmental impacts (Willis & Buonocore, 2023). As the sustainable energy transition ushers in a new era of large-scale energy facility construction, such as hydrogen hubs and direct air capture facilities, there is a need for additional community engagement, planning, and agreements to ensure that communities adjacent to existing and new energy investments benefit from the clean energy transition.In recognition of the need for community representation and economic benefits in the clean energy transition, DOE currently requires Community Benefits Plans (CBPs) for large-scale energy facilities funded through its Office of Clean Energy Demonstrations, which include hydrogen and direct air capture facilities, as well as other competitively awarded projects funded by the Bipartisan Infrastructure Law and the Inflation Reduction Act. DOE also recently launched the Regional Energy Democracy Initiative (REDI), which is intended to provide technical assistance and capacity building to support communities in meaningful engagement in the design and implementation of community benefits associated with DOE-funded projects in the US Gulf South region (US Department of Energy, n.d.).CBPs, when done well, require considerable time on the part of community members and project developers. Understanding whether CBPs are the optimal vehicle to generate community representation in project planning decisions and to deliver local social, economic, and environmental benefits is important to determine whether CBPs should continue as the preferred community engagement and benefits tool for DOE-funded projects. To inform the approaches undertaken through REDI and in other communities across the country where DOE-funded energy projects will take place, we sought to understand how the DOE CBP process is currently unfolding, if there are opportunities for improvement, and if Community Benefits Agreements (CBAs)—legally binding contracts negotiated between a community and a developer—can provide a useful paradigm for improved community outcomes.Ideally, such an analysis would include review of CBPs developed by DOE-funded project teams, including an examination of whether and how the CBPs changed between application submission and contractual obligation, as well as the nature of community participation in the drafting of these plans. Unfortunately, such an analysis is not currently possible, as the only documentation presently released on the CBPs of DOE-funded projects is a high-level “Community Benefits Commitment Summary, ” describing the types of benefits a project will aim to provide to the community and discussing possible future community engagement. However, through literature review and evaluation of community-generated statements and papers, lessons can be learned to guide future public sector efforts that seek to ensure representative community participation, benefits sharing, and reduction of cumulative impacts. |
| Date: | 2025–01–22 |
| URL: | https://d.repec.org/n?u=RePEc:rff:dpaper:dp-25-02 |
| By: | Khaled Eltokhy; Nicoletta Feruglio; Kezhou Miao; Arturo Navarro; Mr. Eivind Tandberg |
| Abstract: | This How to Note discusses how low-income developing countries (LIDCs) can strengthen the effectiveness and efficiency of their public investment. The note draws on Public Investment Management Assessments and focuses on eight institutions that are likely to be key reform priorities in many LIDCs: project appraisal, multi-year budgeting, maintenance, project selection, procurement, availability of funding, project management, and monitoring of public assets. For each of these, the note discusses basic practices, which should be realistic initial reform objectives for low-capacity countries, as well as medium practices that may be relevant objectives for medium-term reforms. The note also discusses how to overcome reform implementation challenges and consolidate the reforms and provides examples of action plans to implement the different reforms. |
| Keywords: | Public investment management; public financial management (PFM); low-income developing countries; public investment management assessment (PIMA); public investment efficiency; reform agenda; management bottleneck; management priority; efficiency frontier; management reform; Public investment spending; Budget planning and preparation; Government cash forecasting |
| Date: | 2025–01–15 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfhtn:2025/001 |
| By: | Hwang, Sunjoo |
| Abstract: | Over the past several decades, real estate project financing (PF) has repeatedly triggered economic disturbances in Korea, with no fundamental remedies in sight until now. Project sponsors are at the heart of this issue, investing minimal equity while heavily relying on guarantees from third parties, such as construction firms, to push forward development projects entirely on debt. This financing structure is unheard of in major advanced countries. Korea needs to reform its unique PF structure by augmenting capital and reducing dependence on guarantees. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kdifoc:308155 |
| By: | Leonardo D'Amico; Edward L. Glaeser; Joseph Gyourko; William R. Kerr; Giacomo A.M. Ponzetto |
| Abstract: | We document a Kuznets curve for construction productivity in 20th-century America. Homes built per construction worker remained stagnant between 1900 and 1940, boomed after World War II, and then plummeted after 1970. The productivity boom from 1940 to 1970 shows that nothing makes technological progress inherently impossible in construction. What stopped it? We present a model in which local land-use controls limit the size of building projects. This constraint reduces the equilibrium size of construction companies, reducing both scale economies and incentives to invest in innovation. Our model shows that, in a competitive industry, such inefficient reductions in firm size and technology investment are a distinctive consequence of restrictive project regulation, while classic regulatory barriers to entry increase firm size. The model is consistent with an extensive series of key facts about the nature of the construction sector. The post-1970 productivity decline coincides with increases in our best proxies for land-use regulation. The size of development projects is small today and has declined over time. The size of construction firms is also quite small, especially relative to other goods-producing firms, and smaller builders are less productive. Areas with stricter land use regulation have particularly small and unproductive construction establishments. Patenting activity in construction stagnated and diverged from other sectors. A back-of-the-envelope calculation indicates that, if half of the observed link between establishment size and productivity is causal, America’s residential construction firms would be approximately 60 percent more productive if their size distribution matched that of manufacturing. |
| JEL: | D24 E23 L7 R31 R52 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33188 |
| By: | Bouchta Aloui (ESSOR - Laboratoire Essor: droit, philosophie et société, FSJES-Fès - Faculté des Sciences Juridiques, Economiques et Sociales de Fès); Salim El Alaoui (FSJES-Fès - Faculté des Sciences Juridiques, Economiques et Sociales de Fès, USMBA - Université Sidi Mohamed Ben Abdellah, ESSOR - laboratoire essor : droit, philosophie et société) |
| Abstract: | Grüne Finanzen, auch bekannt als nachhaltige oder ethische Finanzen, erheben sich als ein aufkommendes Paradigma, das auf die wachsenden Bedenken hinsichtlich des Umweltschutzes und des imperativen Bedarfs an nachhaltiger Entwicklung reagiert. Ihr Hauptziel besteht darin, finanzielle Mittel in Projekte und Initiativen zu lenken, die dem Umweltschutz, der Verringerung der Treibhausgasemissionen und der Förderung einer Wirtschaft, die den Schutz der Biodiversität priorisiert, gewidmet sind. Die wesentlichen Dimensionen grüner Finanzen sind erstens die Förderung von Investitionen in Projekte, die die Umweltverträglichkeit unterstützen, wie erneuerbare Energien, Energieeffizienz und die nachhaltige Bewirtschaftung natürlicher Ressourcen. Zweitens müssen Projekte, die unter grünen Finanzen finanziert werden, strenge Umweltkriterien erfüllen, um mit den internationalen Nachhaltigkeitsprinzipien übereinzustimmen. Diese Kriterien umfassen Umweltleistungsstandards, ökologische Auswirkungenbewertungen und andere relevante Maßnahmen zum Schutz der Umwelt. Allerdings, in Abwesenheit eines expliziten und rigorosen rechtlichen Rahmens, besteht das Risiko von „Greenwashing", bei dem einige Projekte fälschlicherweise als ökologisch ausgeben, um Investoren anzulocken. Daher werden Transparenz und Verifizierung zwingend erforderlich, um solche betrügerischen Praktiken zu verhindern. Es ist daher entscheidend, dass Finanzinstitute wie Banken, Investmentfonds und Versicherungsunternehmen strenge Umweltkriterien in ihre Investitionsentscheidungsprozesse integrieren und verantwortungsvolle Finanzpraktiken fördern. Die größte Herausforderung der grünen Finanzen liegt darin, die finanziellen Mittel vom traditionellen Sektor in Projekte umzuleiten, die auf den Umweltschutz ausgerichtet sind. Indem sie die Entwicklung von Sektoren wie erneuerbaren Energien fördert, trägt sie aktiv zur Minderung schädlicher Umweltauswirkungen bei. Im Wesentlichen stellt die grüne Finanzierung einen innovativen Ansatz dar, der darauf abzielt, finanzielle Interessen mit den Anforderungen der Umweltverträglichkeit in Einklang zu bringen und somit eine grundlegende Rolle im Übergang zu einer ökologischeren und widerstandsfähigeren Wirtschaft zu spielen. |
| Abstract: | Green finance, also known as sustainable or ethical finance, is emerging as a paradigm that addresses growing concerns about environmental preservation and the imperative to promote sustainable development. Its primary goal is to direct financial flows toward projects and initiatives dedicated to environmental protection, reducing greenhouse gas emissions, and fostering an economy that prioritizes biodiversity conservation. The key dimensions of green finance are, first, the promotion of investments aimed at projects that support environmental sustainability, such as renewable energy, energy efficiency, and the sustainable management of natural resources. Second, projects financed under green finance must meet strict environmental criteria to align with international sustainability principles. These criteria include environmental performance standards, ecological impact assessments, and other relevant measures for environmental protection. However, in the absence of an explicit and rigorous legal framework, the risk of "greenwashing" arises, where some projects may falsely claim to be ecological in order to attract investors. Consequently, transparency and verification become imperative to prevent such fraudulent practices. Therefore, it is crucial that financial institutions, such as banks, investment funds, and insurance companies, integrate stringent environmental criteria into their investment decision-making processes and promote responsible financial practices. The major challenge of green finance lies in redirecting financial flows from traditional sectors to projects focused on environmental preservation. By supporting the development of sectors such as renewable energy, it actively contributes to mitigating harmful environmental impacts. In essence, green finance represents an innovative approach that seeks to align financial interests with the demands of environmental sustainability, thus playing a fundamental role in the transition to a more ecological and resilient economy. |
| Abstract: | La finance verte, aussi connue sous les termes de finance durable ou éthique, s'affirme comme un paradigme émergent répondant aux préoccupations croissantes concernant la sauvegarde de l'environnement et l'impératif de promouvoir le développement durable. Son objectif primordial réside dans l'orientation des flux financiers vers des projets et initiatives dédiés à la préservation de l'environnement, à la réduction des émissions de gaz à effet de serre et à la promotion d'une économie qui accorde une priorité à la sauvegarde de la biodiversité. Or, les dimensions essentielles de la finance verte se déclinent, primo, dans la promotion des investissements orientés vers des projets favorisant la durabilité environnementale, tels que les énergies renouvelables, l'efficacité énergétique et la gestion durable des ressources naturelles. Deuzio, les projets financés sous l'égide de la finance verte doivent répondre à des critères environnementaux stricts, afin d'être conformes aux principes internationaux de durabilité. Ces critères incluent des normes de performance environnementale, des évaluations de l'impact écologique et d'autres mesures pertinentes pour la sauvegarde de l'environnement. Toutefois, en l'absence d'un cadre juridique explicite et rigoureux, le risque de « greenwashing » se manifeste, où certains projets peuvent se revendiquer abusivement comme écologiques dans le but d'attirer des investisseurs. Dès lors, la transparence et la vérification deviennent impératives pour prévenir de telles pratiques frauduleuses. En conséquence, il est crucial que les institutions financières, telles que les banques, les fonds d'investissement et les compagnies d'assurance, intègrent des critères environnementaux stricts dans leurs processus décisionnels d'investissement et promeuvent des pratiques financières responsables. L'enjeu majeur de la finance verte réside dans la réorientation des flux financiers du secteur traditionnel vers des projets centrés sur la sauvegarde de l'environnement. En favorisant le développement de secteurs tels que les énergies renouvelables, elle contribue activement à atténuer les impacts environnementaux néfastes. En essence, la finance verte incarne une approche novatrice visant à harmoniser les intérêts financiers avec les exigences de durabilité environnementale, jouant ainsi un rôle fondamental dans la transition vers une économie plus écologique et résiliente. |
| Keywords: | finance verte développement durable RSE prêt vert entreprises banques charte, finance verte, développement durable, RSE, prêt vert, entreprises, banques, charte |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04775425 |
| By: | Dakshina G. De Silva; Benjamin Rosa |
| Abstract: | We study highway procurement in Texas during the Great Recession and stimulus period, finding increased competition with more bidders and lower bids. We argue that the recession reduced opportunity costs, in part due to a slump in private-sector construction. We evaluate costs and efficiency by developing methods to estimate an empirical auction model tailored for public bidding and demonstrate that contracts became more efficient and less costly. A counterfactual analysis confirms that infrastructure procurement during recessions not only stimulates the economy but also enables the government to complete necessary projects at lower costs. |
| JEL: | D44 H57 H71 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33299 |
| By: | Martinez, Natalie; Guarino, Jenny |
| Abstract: | Our project was largely inspired by the report Decarcerating Transportation - a Mobility Justice Framework, by the Anti-Police Terror Project. This report gives background on the link between transportation and the criminal legal system and the negative repercussions especially for communities of color. It also provides a roadmap with concrete policy recommendations for localities to take on the task of decarcerating transportation, with the goals of removing police from public transit and traffic enforcement, universalizing accessibility to public transportation, and ending punitive systems involving fines and fees that further exacerbate financial insecurities of marginalized communities. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2024–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsrrp:qt1bc5c16h |
| By: | Zenne Hellinga; Julia Bachtrögler-Unger; Pierre-Alexandre Balland; Ron Boschma |
| Abstract: | The Smart Specialization Strategy (S3) is a cornerstone of the EU’s Cohesion Policy, with over €61 billion allocated for Research & Innovation from 2014 to 2020. This paper explores the prioritization of technological domains within regional S3 strategies and their influence on funding allocation of the European Regional Development Fund. Our findings indicate that while regions select a broad range of S3 priorities, they tend to prioritize those more related to their existing technological capabilities. This is particularly true for less developed andtransition regions. The lack of selectivity in S3 strategies appears to be mitigated when these priorities are converted into funding allocations. There we observe that funding allocation appears to align more closely with regional capabilities than initial S3 priorities. We also find that, although the complexity of technologies is somewhat considered in selecting S3 priorities, it seems to gain importance when regions dedicate their funding to specific R&I projects. |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2502 |
| By: | Kovvali, Aneil; Macey, Joshua C. |
| Abstract: | A common justification for shareholder primacy is that shareholders' financial interests give them an incentive to pursue projects that increase social welfare. This alignment of interests occurs because shareholders hold a residual claim on firm value: Because they receive only what remains after the firm has met its contractual and regulatory obligations, they have a unique incentive to pursue innovative projects, increase profits, and keep costs down. According to the conventional view, third parties protect their interests through external mechanisms such as regulations and contracts negotiated against the backdrop of competitive markets. This Article builds on the relational contracting literature to identify a class of situations in which government interventions cause some of these assumptions break down. In many industries, including electric utilities, defense contracting, financial services, and pharmaceuticals, the government sets firm profits, establishes demand for a good or service, or protects counterparties from the negative consequences of excessive risk-taking. Whether justified or not, these interventions can put firms in a position to hold up the government. For example, if an intervention ensures that only the regulated firm can provide an essential service, the government may be unable to credibly threaten to resolve the firm and may therefore be unable to force the firm to accept lower earnings. (Or course, similar bargaining dynamics arise without a government intervention when the government feels compelled to bail out firms that provide systemically important goods and services.) As a result, the firm can demand additional revenues to cover unexpected costs or pass the costs of regulatory noncompliance onto customers. That, in turn, weakens shareholders' financial incentives to pursue socially beneficial projects. The implication is that outside stakeholders, particularly the government, should participate more directly in corporate governance in these industries. Potential interventions include heightened merger review; a say in personnel decisions such as hiring, firing, and executive compensation; expanded fiduciary duties; and perhaps wider board representation. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cbscwp:308818 |