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on Project, Program and Portfolio Management |
| By: | Jean-Michel Benkert; Igor Letina |
| Abstract: | We provide a model of investment in innovation that is dynamic, features multiple heterogeneous research projects of which only one potentially leads to success, and in each period, the researcher chooses the set of projects to invest in. We show that if a search for innovation starts, it optimally does not end until the innovation is found -- which will be never with a strictly positive probability. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.03227 |
| By: | de Castro, Luciano; Frischtak, Claudio; Rodrigues, Arthur |
| Abstract: | Most developing economies rely on foreign capital to finance their infrastructure needs. These projects are usually structured as long-term (25–35 years) franchises that pay in local currency. If investors evaluate their returns in terms of foreign currency, exchange rate volatility introduces risk that may reduce the level of investment below what would be socially optimal. In this article, we propose a mechanism with very general features that hedges exchange rate fluctuation by adjusting the concession period. Such mechanism does not imply additional costs to the government and could be offered as a zero-cost option to lenders and investors exposed to currency fluctuations. We illustrate the general mechanism with three alternative specifications and use data from a 25-year highway franchise to simulate how they would play out in eight different emerging economies that exhibit diverse exchange rate trajectories. Results show relatively small length adjustments, and suggest the mechanism offers a powerful policy tool to cost-effectively attract vital foreign infrastructure investment for developing countries. |
| Keywords: | bidding for public projects; concession periods; exchange rate risk; government protection; infrastructure projects; insurance for exchange rate risk; investors risk aversion |
| JEL: | H40 F30 H80 |
| Date: | 2025–01–07 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126881 |
| By: | Alin Halimatussadiah; Milda Irhamni; Teuku Riefky; Muhammad Nur Ghiffari; Fachry Abdul Razak Afifi (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)) |
| Abstract: | Indonesia has pledged an ambitious target for decarbonizing its energy sectors. This study aims to examine the potential impact of transitioning the power and automotive sectors on employment. Utilizing energy modeling results for three different decarbonization scenarios, this study quantitatively projects the direct, indirect, and induced impacts of transitioning the power sector on employment for the period of 2020-2050. The analysis of the automotive sectors was taken using qualitative method to gather insight into the potential net job creation resulting from transitioning to Electric Vehicle (EV) from Internal Combustion Engine Vehicle (ICEV). The findings suggest that decarbonizing the electricity sector to meet the Paris Agreement target would create 5.86 million direct jobs-year, 2.67 million higher than the business-as-usual scenario. The job creation primarily comes from solar photovoltaics (PV) projects, despite potential job losses from retiring coal plants. Most of these direct jobs are associated with the construction and installation phases of power plants. Overall, the energy transition could result in net job creation (direct, indirect, and induced impacts) ranging from 7.07 million to 12.17 million jobsyears by 2050. In contrast to the positive employment impact Contrasting to the results in the power sector, this study identified two main risks associated with the transition from ICEV to EV manufacturing: lower demand for workers for ICEV components manufacturing and maintenance and higher demand for workers capable of handling more automation-based manufacturing technology, potentially leading to net job losses. This evidence suggests that policymakers should enhance human capital through training and certification, as well as fostering collaboration among stakeholders to address labor market changes during the energy transition and fully capture its benefits. |
| Keywords: | net-zero emissions — energy transition — power sector — automotive sector — employment — Indonesia |
| JEL: | E24 J21 Q43 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:lpe:wpaper:202481 |
| By: | Khondaker Golam Moazzem; Mashfiq Ahasan Hridoy |
| Abstract: | The paper ‘Attracting Overseas Investment in the Renewable Energy Sector of Bangladesh: Case of Chinese Investment’ provides a comprehensive analysis on the strategic approaches for Bangladesh to attract Chinese investment in its burgeoning renewable energy sector. It delves into the current renewable energy landscape, identifying key challenges that impede Chinese investment, including policy, regulatory, infrastructural, and financial barriers. Drawing on China’s vast experience and success in renewable energy development, the report outlines actionable policy recommendations for Bangladesh. These recommendations are designed to address the identified challenges, facilitating a conducive environment for Chinese investments. |
| Keywords: | Renewable Energy Sector, Chinese Investment, financial barriers, Bangladesh |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:pdb:report:53 |
| By: | Faradina A. Maizar; Teuku Riefky; Ghany E. Wiguna; Raka R. Fadilla; Yoshua Caesar Justinus; Jahen F. Rezki (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)) |
| Abstract: | The study evaluates Korea’s Official Development Assistance (ODA) in Indonesia, focusing on its effectiveness and local perspectives. Information gathered from 112 stakeholders that received ODA from Korea indicates satisfaction with Korean ODA due to inclusive project identification, effective planning, substantial implementation budgets, knowledge transfer, capacity building, direct communication, and stringent monitoring. Despite these strengths, issues like rigid expectations, language barriers, prolonged negotiations, and bureaucratic inefficiencies persist. Further improvement will be needed to improve the impact of the ODA; it includes setting flexible targets, employing interpreters, streamlining regulations, enhancing monitoring, reducing consultant reliance, following up on projects, and simplifying bureaucratic processes. Addressing these challenges can enhance the impact of Korea’s ODA, strengthening bilateral cooperation and sustainable development. |
| Keywords: | ODA — Korea — Indonesia — Evaluation |
| JEL: | F35 H81 O19 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:lpe:wpaper:202478 |
| By: | Rodier, Caroline |
| Abstract: | This report presents the results of the Ecosystem of Shared Mobility Services in the San Joaquin Valley (Ecosystem) pilot project. The project is part of California Climate Investments (CCI), a statewide initiative that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment — particularly in disadvantaged communities. As the grantee for this pilot project, the San Joaquin Valley Air Pollution Control District implemented the pilot program by partnering and/or subcontracting with several local entities including, but are limited to: Sigala Inc.; UC Davis, Institute of Transportation Studies; Shared-Use Mobility Center (SUMC); Self-Help Enterprises, and MOVE. Funding for the Ecosystem pilot project provided by a grant from the California Air Resources Board (CARB) through the Car Sharing and Mobility Option Pilot Project solicitation. Research for the project was also supported by funding through the University of California via the Public Transportation Account and the Road Repair and Accountability Act of 2017 (Senate Bill 1) and the National Center for Sustainable Transportation, supported by the U.S. Department of Transportation (USDOT) and the California Department of Transportation (Caltrans) through the University Transportation Centers program. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Demand responsive transportation, Mode choice, Ridesharing, Rural areas, Shared mobility, Transportation disadvantaged persons, Travel behavior, Vehicle sharing |
| Date: | 2023–03–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt6x38h5ck |
| By: | Bennett, Daniel L. (Center for Free Enterprise, Department of Economics); Bjørnskov, Christian (Department of Economics, Aarhus University, Denmark, and); Gohmann, Stephan F. (Department of Economics) |
| Abstract: | Understanding the consequences and recovery for countries hit by adverse national events such as political crises is central to understanding long-run development dynamics. Utilizing the Coleman boat framework, we develop a micro-foundation based theoretical framework grounded in public choice theory and institutional economic theory to theorize about the productivity consequences of political coups. Our theory suggests two consequences. First, coups create regime uncertainty that distorts the judgment of entrepreneurs and firm managers, resulting in their delaying or abandoning altogether investment in potential productivity-enhancing innovation projects. Second, in addition to regime uncertainty, institutional changes in the aftermath of a coup exert long-run impacts on national productivity by creating a misalignment of the formal institutional environment. Our model allows us to disentangle the productivity effects of institutional uncertainty from actual institutional change following a political crisis. We assemble a unique longitudinal dataset consisting of 39 nations covering the period 1950-2012 to empirically test our hypotheses using panel data methods. We further explore some of the boundary conditions of our analysis. |
| Keywords: | Coups; Regime change; Institutional change; Productivity |
| JEL: | E02 O31 O43 P47 |
| Date: | 2025–01–20 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1518 |