Optimisation of government subsidies in infrastructure public-private partnerships

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dan Wang ◽  
Xueqing Wang ◽  
Lu Wang ◽  
Henry Liu ◽  
Michael Sing ◽  
...  
Keyword(s):  
Stackelberg Game ◽  
Underlying Mechanism ◽  
Project Performance ◽  
Public Private Partnerships ◽  
Game Model ◽  
Government Subsidy ◽  
Willingness To Participate ◽  
Content Type ◽  
Wide Range ◽  
The Government

Purpose This study aims to develop a Stackelberg Game Model for seeking the optimal subsidy plans with varying levels of government financial capability (GFC). Furthermore, the scenario-based analysis is conducted and will enable governments to identify a comprehensive subsidy plan as follows: improve project performance and optimise social welfare. Design/methodology/approach A Stackelberg Game Model is developed to optimise the effectiveness of subsidies on the performance of public-private partnerships (PPPs). Findings According to the scenarios that are generated from the model, governments that are confronting with limited public budgets could reduce the intensity of performance incentives and increase the participation-oriented subsidy. Whilst a participation-oriented subsidy can stimulate private organisations’ willingness to participate in infrastructure PPPs, a performance-oriented subsidy is capable of facilitating the projects’ performances. Intuitively, the performance-oriented subsidy enables the private entities of PPPs to improve their efforts on the projects to realise higher profits. However, the participation-oriented subsidy is unable to affect the level of their effort spent on the projects. To satisfy both parties’ expectations in a PPP, the performance-oriented subsidy needs to be prioritised for a purpose of enabling higher quality outputs. Practical implications The game model developed in this study contributes to the literature by offering new insight into the underlying mechanism of governments and private entities, in terms of their decision-making for subsidy planning and contributions (i.e. resource allocation and spending) during the life-cycle of PPPs. This research enriches the government subsidy model by revealing the effects of the GFC and clarifies the impacts of two different schemes of subsidy on the performance of PPPs. Originality/value The government has been conventionally viewed as being omnipotent to provide PPPs with a wide range of subsidies. However, the subsidies are not unlimited, due to GFC. In addressing this void, this study has modelled the impacts of government subsidy plans with a consideration of GFC-related constraints. The combined effects of the participation- and performance-oriented subsidies on the project performance of PPPs have been examined.

On green market segmentation under subsidy regulation

2017 ◽  
Vol 22 (3) ◽  
pp. 284-294 ◽  
Author(s):  
Xiang Li ◽  
Yongjian Li
Keyword(s):  
Market Segmentation ◽  
Stackelberg Game ◽  
Carbon Tax ◽  
Government Subsidy ◽  
Low Carbon ◽  
Role Of Government ◽  
Content Type ◽  
Green Market ◽  
Multi Objective Programming ◽  
The Government

Purpose This study aims to provide a better understanding of the market balance between regular (high-carbon) and green (low-carbon) products. Further, this study analyses the role of government subsidy policy, based on the results of the government’s optimal green subsidy decision and its implication for green market segmentation and social welfare. Design/methodology/approach This study adopts a Stackelberg game framework to study the interaction between the government’s subsidy regulations and the firms’ marketing regimes. When considering government subsidy decision, we use multi-objective programming theory and turn the problem into weighted single-objective optimisation programming. Findings This study explores three marketing regimes and identifies the conditions under which each regime should be adopted by a firm. Further, investigating the optimal subsidy decision problem for the government reveals three subsidy regimes corresponding to the three marketing regimes. The government may be stuck in a regime of useless subsidy and the reason for this phenomenon is analysed as well. Research limitations/implications Developing the model into a more complex supply chain situation will enhance the applicability of the framework. Incorporating other environmental regulations, such as carbon tax, can be interesting research extensions of this study. Practical implications This study provides a quantitative framework, which can help the regulator gain a deeper understanding of green subsidy policies and assist focal companies in acquiring a better appreciation of green marketing segmentation. Originality/value The study is one of the first few works to explore the optimal design of green subsidy regulation for the government and its impact on market segmentations of high- and low-carbon products by using quantitative modelling approaches and deriving vital managerial insights.

Perceived effectiveness of e-governance as an underlying mechanism between good governance and public trust: a case of Indonesia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dadang Hartanto ◽  
Juhriyansyah Dalle ◽  
A. Akrim ◽  
Hastin Umi Anisah
Keyword(s):  
Local Governments ◽  
Good Governance ◽  
Underlying Mechanism ◽  
Public Trust ◽  
The Body ◽  
Perceived Effectiveness ◽  
Content Type ◽  
Body Of Knowledge ◽  
Governance Effectiveness ◽  
The Government

Purpose This study aims to investigate the association of perceived accountability, perceived responsiveness and perceived transparency, and public trust in local government. Additionally, mediation of the perceived effectiveness of e-governance was also tested between these relationships. Design/methodology/approach Using a quantitative cross-sectional field survey, primary data was collected at local administration levels from two cities in Indonesia. The final data set of 355 respondents was then analyzed using SmartPls3 and the measurement and structural models were tested. Findings Positive results were obtained for all the hypothesized links (direct and indirect relationships). The study’s findings revealed useful insights for policymakers and researchers regarding the public’s perception of good governance and their expectations from the government, which further lead toward trust in local governments. Practical implications The study concluded that good governance practices develop and enhance the public’s trust in the government, thus provided key policy directions. Originality/value This study contributes to the body of knowledge related to good governance elements and their impact on public trust in the local government via the underlying mechanism of perceived e-governance effectiveness in developing countries in general and particularly the Indonesian context. Moreover, it is a unique study in the good governance domain while considering three good governance elements into a single theoretical framework. Previous studies have explored these elements individually with public trust, so this combined framework advances the body of knowledge. This research’s findings also contributed toward validating good governance theory with e-governance effectiveness and public trust integration in a single comprehensive framework. This research also helped answer the questions arising from past literature about declining public trust trends in local governments.

United Kingdom to strengthen cybersecurity nationally

2016 ◽  
Keyword(s):  
United Kingdom ◽  
Private Sector ◽  
Public Private Partnerships ◽  
Content Type ◽  
New Strategy ◽  
Uk Government ◽  
A Priority ◽  
The Government ◽  
The Uk ◽  
Naming And Shaming

Subject The United Kingdom's new cybersecurity strategy. Significance The UK government on November 1 published its Cybersecurity Strategy for 2016-21. The new strategy doubles the previous investment in cyber to 1.9 billion pounds (2.4 billion dollars) during a time of government cutbacks, making it clear that the government regards cybersecurity as a priority. Impacts Despite serious investment, the government will still face a challenge in recruiting those with the required cyber skills. Given the expertise in the private sector, public-private partnerships will continue to be vital for protecting UK networks. ‘Naming and shaming’ cyber aggressors may become more prevalent as states seek to deter further cyberattacks. Governments may also increasingly focus on developing offensive cyber tools that can be used to counter-strike.

Power problems will haunt Armenian government

2015 ◽  
Keyword(s):  
Economic Growth ◽  
Public Support ◽  
Domestic Demand ◽  
Electric Networks ◽  
Content Type ◽  
Goods And Services ◽  
Wide Range ◽  
Electricity Costs ◽  
The Government ◽  
Independent Audit

Significance In a bid to quell the protests, President Serzh Sargsyan has announced that the government will subsidise the increase until the completion of an independent audit into the operations of Russian-owned Electric Networks of Armenia (ENA). The 'No To Plunder' campaign, which has played a key role in the protests, is dissatisfied with the concession. The numbers of protestors have fallen sharply in recent days, but the government is becoming increasingly unpopular. Impacts Higher electricity costs will lead to a rise in inflationary pressures for a wide range of goods and services. This will depress domestic demand as businesses and households are already struggling with the dram's sharp depreciation against the dollar. The slowdown in economic growth this year is likely to see public support for the authorities fall further.

Infrastructure investments face obstacles in Peru

2017 ◽  
Keyword(s):  
United States ◽  
The United States ◽  
National Government ◽  
Public Works ◽  
Public Private Partnerships ◽  
Content Type ◽  
The Future ◽  
Infrastructure Investments ◽  
The Government

Subject Public-private partnerships. Significance Amid attempts to secure new investment from Canada and the United States, the government is wrestling with political difficulties surrounding the future of public-private partnerships (PPPs). These have been magnified in recent months by the bad publicity arising from the Odebrecht bribery scandals. Establishing a politically acceptable balance between attracting investors and ensuring the transparency of public works contracts is proving increasingly important. Impacts The problem of corruption in sub-national government will cloud the operations of PPPs. There will be a need for stronger and more independent regulation of PPP projects. The localised reach of the Works for Taxes programme will limit its scope in dealing with wider objectives.

Corruption and constitution challenge Panama’s Cortizo

2019 ◽  
Keyword(s):  
Latin America ◽  
Money Laundering ◽  
Trade Union ◽  
Public Private Partnerships ◽  
Domestic Production ◽  
Content Type ◽  
Social Democratic ◽  
Price Controls ◽  
Economic Slowdown ◽  
The Government

Significance Despite a recent economic slowdown, Panama remains one of the most dynamic economies in Latin America. Cortizo needs to attract more investors and keep up the pace of development, while demonstrating that his government’s social democratic approach can make headway against corruption and poor governance. Impacts The removal of price controls on basic foodstuffs suggests Cortizo is committed to market-friendly growth. As a former farmer and agriculture minister, Cortizo will strive to boost domestic production of food and reduce reliance on imports. The Cortizo administration is preparing legislation to promote public private partnerships, which could face trade union opposition. Cortizo will try to continue the strengthening of Chinese relations begun under the last administration, while maintaining close US ties. The government will strive to improve anti-money laundering regulations fast, to get Panama removed from international ‘grey lists.’

Mobile logistics hubs prepositioning for emergency preparedness and response in Nepal

2020 ◽  
Vol 10 (4) ◽  
pp. 555-572
Author(s):  
Rajali Maharjan ◽  
Yashaswi Shrestha ◽  
Biplob Rakhal ◽  
Saurav Suman ◽  
Jurgen Hulst ◽  
...  
Keyword(s):  
Mathematical Model ◽  
Focus Group ◽  
Focus Group Discussion ◽  
Expert Knowledge ◽  
Group Discussion ◽  
Real Life ◽  
Content Type ◽  
Wide Range ◽  
The Government ◽  
Multiple Experts

PurposeThe purpose of this study is to develop a methodology which amalgamates quantitative and qualitative approaches to determine the best placement of mobile logistics hubs (MLH) to be established in different parts of Nepal as a part of real-life project, “Augmentation of National and Local-Level Emergency Logistics Preparedness in Nepal” (2017–2020), implemented by the World Food Programme in cooperation with the Government of Nepal.Design/methodology/approachThe study develops a methodology using a combination of a modified version of the maximal covering location problem (MCLP) and focus group discussion. The MCLP model is used to determine the optimal number and spatial location of MLHs, and focus group discussion is used to identify the five first-priority strategic MLH locations using expert knowledge.FindingsThe authors identify the five first-priority locations for establishing MLHs using an amalgamation of quantitative approach (mathematical model) and qualitative approach (focus group discussion). By amalgamating mathematical model with expert knowledge, findings acceptable to a wide range of stakeholders are obtained. The focus group discussion helps to pinpoint the location of MLHs to city-level granularity which is otherwise impossible with data available on hand.Research limitations/implicationsAlthough multiple experts’ judgements were obtained via focus group discussion, subjectivity and possible bias is inevitable. Overall, the quantitative results of the study are purely based on the data available during the study period; therefore, having updated data could possibly improve the quality of the results.Originality/valueThis study is the first of its kind that uses an amalgamation of mathematical model and expert knowledge to determine the strategic locations of MLHs and has been successful to an extent that the selected locations have been vetted by the government of Nepal for establishing MLHs and are undergoing implementation in real life. This study also considers multiple disaster scenarios and employs the concepts of human development, disaster risk and transportation accessibility to reflect Nepal's socioeconomic, geo-climatic and topographical features.

SMEs’ impediments and developments in the internationalization process

2015 ◽  
Vol 11 (2) ◽  
pp. 100-119 ◽  
Author(s):  
Fariza Hashim
Keyword(s):  
International Business ◽  
Meta Analysis ◽  
The Body ◽  
Statistical Testing ◽  
Internationalization Process ◽  
Skilled Workers ◽  
Content Type ◽  
Analysis Technique ◽  
Wide Range ◽  
The Government

Purpose – The purpose of this paper is, first, to examine the factors that impede SMEs in their internationalization process; second, to analyse the effectiveness of the government support and development programs of the SMEs; and finally, to examine the networking efforts by Malaysian SMEs at the industrial level. Design/methodology/approach – This study is descriptive in nature. Secondary data are the main source of data collection. Data were obtained from reliable and authoritative sources such as SME Corp, government agency publications, newspapers, international business journals and other related periodicals. A meta-analysis technique was used in this study where results from previous and current studies on similar topics were critically reviewed. Findings – This study found that Malaysian SMEs faced external and internal impediments in their efforts of expanding their operations internationally. Externally there is a lack of skilled workers available in the domestic labour market; increased competition in the domestic market due to the regional economic agreement among neighbouring countries; lack of physical infrastructure allocated to the SMEs; and government assistance offered does not reach SMEs due to high level of bureaucracy and poor communication. Despite the impediments encountered by SMEs, they still obtained benefits from various policies, programmes and incentives provided by the government. Research limitations/implications – Meta-analysis conducted on the challenges of Malaysian SMEs in its internationalization process might be inadequate as it is limited to the availability of the current and previous studies. Additionally, quantitative data obtained from the secondary source was not raw data thus statistical testing could not be further conducted and analysed. Data obtained from the local authoritative sources detected different problems and challenges from those found in previous and current studies. Practical implications – This study indicates several implications for managers and policy makers. Malaysian SMEs need to evaluate its capability before embarking into new geographic locations and engage internationally. With diverse programmes offered by the government, SMEs have a wide range of choice when involving the whole value chain activities, either through marketing their products in the market or manufacturing and supplying the products to large firms or MNCs. Involving international markets is not only about expanding the market but also for seeking lower costs and resources as well as operating with management efficiency. Originality/value – This study contributes to the body of knowledge of international business and entrepreneurship literature in three ways. First, research on SMEs from emerging countries involved in international market tend to be limited in literature, most of them are concentrated in the developed countries; thus this study would extend the understanding about the internationalization process among SMEs. Second, this study focused on the impediments of SMEs in their implementation strategies which represent the practicality of the phenomenon thus bridging the gap between theories and realities. Third, this study brings to light the significance of networking relationships in international business and entrepreneurship primarily among SMEs due to their size limitations. Finally, the meta-analysis technique which is seldom used in the international business and entrepreneurial literature is adopted in this study. This technique provides another approach for the researchers to examine and address the issues in the field.

scholarly journals Policy-Combination Oriented Optimization for Public Transportation Based on the Game Theory

2018 ◽  
Vol 2018 ◽  
pp. 1-14 ◽  
Author(s):  
Wentao Zhu ◽  
Mengwei Chen ◽  
Dianhai Wang ◽  
Dongfang Ma
Keyword(s):  
Public Transportation ◽  
Stackelberg Game ◽  
Travel Cost ◽  
Comfort Level ◽  
Game Model ◽  
Transit Assignment ◽  
Dynamic Interactions ◽  
Effective Performance ◽  
The Game Theory ◽  
The Government

This research aims at detecting the interactions between policy maker and travelers when making public transport policy and strategies to optimize relevant policy combination. In the two scenarios of whether to set a bus lane or not, travel cost functions of bus and car are proposed, respectively, with the in-vehicle comfort level of passengers considered. By introducing the bottleneck model and transit assignment model, travelers’ behaviors are revealed according to different travel mode. Focusing on minimizing the total cost of the system (TSC), Stackelberg game model is built to describe the dynamic interactions between the government, the bus company, and travelers. Finally, kriging surrogate method is proposed on account of numerical simulation to find solution to the game model and propose the optimal policy combination and resource allocation. The results show an effective performance: under the assumption that the travel distance is 20km, the optimized policy combination can reduce TSC by 8.59% and 9.82% in two scenarios, respectively, and reduce travel cost per person by 10.28% and 15.85%, respectively.

Towards understanding of ultrasonic consolidation process with “process map”

2015 ◽  
Vol 21 (4) ◽  
pp. 461-468 ◽  
Author(s):  
Song Zhang ◽  
Dalong Yi ◽  
Hui Zhang ◽  
Lili Zheng ◽  
Yuduo Zhang ◽  
...  
Keyword(s):  
Plastic Strain ◽  
Underlying Mechanism ◽  
Operating Conditions ◽  
Control Parameters ◽  
Contact Interface ◽  
Consolidation Process ◽  
Process Map ◽  
Ultrasonic Consolidation ◽  
Content Type ◽  
Wide Range

Purpose – The purpose of this paper is to identify the key parameters that control the bonding formation of foils by the ultrasonic consolidation (UC) process and to build the correlations among process operating conditions and key control parameters through the concept of “process map”. Design/methodology/approach – The concept of “process map” is proposed based on the diffusion bonding mechanism for the UC process, and numerical simulations have been applied to the UC process to predict peak temperature and plastic strain at the contact interface by considering a wide range of process operating conditions. Findings – This map reveals that the formation of bonding among foils by the UC process requires a good match between temperature and plastic deformation at the contact interface. This limits the process operating window to a narrow region in the strain – temperature coordinate system. Originality/value – This work has identified the underlying mechanism for bonding formation and the key control parameters of the UC process. The concept of “process map” for the UC process was developed, which allows the process optimization through two critical process control parameters of temperature and plastic strain at the contact interface instead of five operating conditions.

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