IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v17y2020i15p5350-d389503.html
   My bibliography  Save this article

Determinants of Public-Private Partnership Adoption in Solid Waste Management in Rural China

Author

Listed:
  • Dan Pan

    (School of Economics, Jiangxi University of Finance and Economics, Nanchang 330013, China)

  • Huan Chen

    (School of Economics, Jiangxi University of Finance and Economics, Nanchang 330013, China)

  • Guzhen Zhou

    (School of Economics, Jiangxi University of Finance and Economics, Nanchang 330013, China)

  • Fanbin Kong

    (School of Economics and Management, Zhejiang A&F University, Hangzhou 311300, China
    Research Academy for Rural Revitalization of Zhejiang Province, Zhejiang A&F University, Hangzhou 311300, China)

Abstract

Rural solid waste management is a severe challenge in China. The Public-Private Partnership (PPP) is an effective method for rural solid waste management. However, policy efforts aimed at stimulating the adoption of PPP in rural solid waste management have been limited in their success. This study aims to empirically investigate the determinants of rural solid waste management PPP adoption in China. First, this study builds a theoretical model that consists of factors related to the institutional environment and market and proposes theoretical hypotheses. Then, using the balanced provincial panel data of 150 samples from 2015 to 2019, this study applies various count regression models and truncated regression models to empirically test the theoretical hypotheses. The results show that provinces with higher fiscal transparency, financial burdens, and market demand tend to adopt more PPP, while provinces with lower per capita GDP and market openness index ratings have a stronger motivation to initiate more PPP. In contrast, investment institutional environment factors have no impact on PPP adoption. To stimulate the development of PPP in rural solid waste management, this study proposed that a good-governed government and a strong market demand are critical foundations, and also a debt-risk prevention and evaluation system should be established to avoid local debt risks resulting from over-adoption of PPP.

Suggested Citation

  • Dan Pan & Huan Chen & Guzhen Zhou & Fanbin Kong, 2020. "Determinants of Public-Private Partnership Adoption in Solid Waste Management in Rural China," IJERPH, MDPI, vol. 17(15), pages 1-14, July.
    • Handle: RePEc:gam:jijerp:v:17:y:2020:i:15:p:5350-:d:389503
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/17/15/5350/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/17/15/5350/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ling Wang & Lihong Zhou & Yan Xiong & Dongyi Yan, 2019. "Effect of promotion pressure and financial burden on investment in public–private partnership infrastructure projects in China," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 33(2), pages 128-142, November.
    2. Zhang, Yanlong, 2015. "The formation of public-private partnerships in China: an institutional perspective," Journal of Public Policy, Cambridge University Press, vol. 35(2), pages 329-354, August.
    3. Cameron, A Colin & Trivedi, Pravin K, 1986. "Econometric Models Based on Count Data: Comparisons and Applications of Some Estimators and Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 29-53, January.
    4. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    5. Bo Zhang & Li Zhang & Jing Wu & Shouqing Wang, 2019. "Factors Affecting Local Governments’ Public–Private Partnership Adoption in Urban China," Sustainability, MDPI, vol. 11(23), pages 1-14, December.
    6. Justin Yifu Lin & Zhiqiang Liu, 2000. "Fiscal Decentralization and Economic Growth in China," Economic Development and Cultural Change, University of Chicago Press, vol. 49(1), pages 1-21.
    7. Qi, Jiaqi & Zheng, Xiaoyong & Guo, Hongdong, 2019. "The formation of Taobao villages in China," China Economic Review, Elsevier, vol. 53(C), pages 106-127.
    8. Dan Pan & Ruiyao Ying & Zuhui Huang, 2017. "Determinants of Residential Solid Waste Management Services Provision: A Village-Level Analysis in Rural China," Sustainability, MDPI, vol. 9(1), pages 1-15, January.
    9. Wang, Huanming & Ma, Liang, 2019. "Ownership, corruption, and revenue regimes for infrastructure partnerships: Evidence from China," Utilities Policy, Elsevier, vol. 60(C), pages 1-1.
    10. Huanming Wang & Wei Xiong & Guangdong Wu & Dajian Zhu, 2018. "Public–private partnership in Public Administration discipline: a literature review," Public Management Review, Taylor & Francis Journals, vol. 20(2), pages 293-316, February.
    11. Zhang, Tao & Zou, Heng-fu, 1998. "Fiscal decentralization, public spending, and economic growth in China," Journal of Public Economics, Elsevier, vol. 67(2), pages 221-240, February.
    12. Carter B. Casady & Kent Eriksson & Raymond E. Levitt & W. Richard Scott, 2020. "(Re)defining public-private partnerships (PPPs) in the new public governance (NPG) paradigm: an institutional maturity perspective," Public Management Review, Taylor & Francis Journals, vol. 22(2), pages 161-183, February.
    13. Sha Cao & Dingde Xu & Shaoquan Liu, 2018. "A Study of the Relationships between the Characteristics of the Village Population Structure and Rural Residential Solid Waste Collection Services: Evidence from China," IJERPH, MDPI, vol. 15(11), pages 1-17, October.
    14. Raden Murwantara Soecipto & Koen Verhoest, 2018. "Contract stability in European road infrastructure PPPs: how does governmental PPP support contribute to preventing contract renegotiation?," Public Management Review, Taylor & Francis Journals, vol. 20(8), pages 1145-1164, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Taron, Avinandan & Majumder, A. & Bodach, Susanne & Agbefu, Dzifa, 2023. "Public-private partnerships for the circular bio-economy in the Global South: lessons learned," IWMI Reports 339137, International Water Management Institute.
    2. Taron, Avinandan & Majumder, A. & Bodach, Susanne & Agbefu, Dzifa, 2023. "Public-private partnerships for the circular bio-economy in the Global South: lessons learned," Resource Recovery and Reuse Series H052155, International Water Management Institute.
    3. Taron, Avinandan & Majumder, A. & Bodach, Susanne & Agbefu, Dzifa, 2023. "Public-private partnerships for the circular bio-economy in the Global South: lessons learned," IWMI Books, Reports H052155, International Water Management Institute.
    4. Pengfei Fan & Lili Ren & Xihao Zeng, 2024. "Resident Participation in Environmental Governance of Sustainable Tourism in Rural Destination," Sustainability, MDPI, vol. 16(18), pages 1-18, September.
    5. Dan Pan & Yi Yu & Kaiwen Ji, 2024. "The impact of rural living environment improvement programs on the subjective well-being of rural residents in China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lei Yang & Longji Hu & Yifan Li, 2024. "Institutional Environment, Institutional Arrangements, and Risk Identification and Allocation in Public–Private Partnerships: A Multilevel Model Analysis Based on Data from 31 Provinces in China," Sustainability, MDPI, vol. 16(15), pages 1-28, August.
    2. T.R.L. Fry & R.D. Brooks & Br. Comley & J. Zhang, 1993. "Economic Motivations for Limited Dependent and Qualitative Variable Models," The Economic Record, The Economic Society of Australia, vol. 69(2), pages 193-205, June.
    3. Chunli Shen & Jing Jin & Heng-fu Zou, 2012. "Fiscal Decentralization in China: History, Impact, Challenges and Next Steps," Annals of Economics and Finance, Society for AEF, vol. 13(1), pages 1-51, May.
    4. Thomas Bolli & Martin Woerter, 2013. "Technological Diversification and Innovation Performance," KOF Working papers 13-336, KOF Swiss Economic Institute, ETH Zurich.
    5. Becker, Gary S. & Rubinstein, Yona, 2011. "Fear and the response to terrorism: an economic analysis," LSE Research Online Documents on Economics 121740, London School of Economics and Political Science, LSE Library.
    6. Gary King, 1989. "A Seemingly Unrelated Poisson Regression Model," Sociological Methods & Research, , vol. 17(3), pages 235-255, February.
    7. David Bartolini, 2015. "Municipal fragmentation and economic performance in OECD TL2 regions," ERSA conference papers ersa15p607, European Regional Science Association.
    8. Christopher J. W. Zorn, 1998. "An Analytic and Empirical Examination of Zero-Inflated and Hurdle Poisson Specifications," Sociological Methods & Research, , vol. 26(3), pages 368-400, February.
    9. Martinez-Vazquez, Jorge & McNab, Robert M., 2003. "Fiscal Decentralization and Economic Growth," World Development, Elsevier, vol. 31(9), pages 1597-1616, September.
    10. Sanz Labrador, Ismael & Sanz-Sanz, José Félix, 2013. "Política fiscal y crecimiento económico: consideraciones microeconómicas y relaciones macroeconómicas," Macroeconomía del Desarrollo 5367, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    11. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 55-92, August.
    12. Gouriéroux, Christian & Monfort, Alain, 1997. "Modèles de comptage semi-paramétriques," L'Actualité Economique, Société Canadienne de Science Economique, vol. 73(1), pages 525-550, mars-juin.
    13. Whitney Buser, 2011. "The impact of fiscal decentralization on economics performance in high-income OECD nations: an institutional approach," Public Choice, Springer, vol. 149(1), pages 31-48, October.
    14. Raguragavan, Jananee & Hailu, Atakelty & Burton, Michael, 2013. "Economic Valuation of Recreational Fishing in Western Australia: Statewide Random Utility Modelling of Fishing Site Choice Behaviour," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(4), pages 1-20.
    15. van Zeebroeck, Nicolas & van Pottelsberghe de la Potterie, Bruno & Guellec, Dominique, 2009. "Claiming more: the Increased Voluminosity of Patent Applications and its Determinants," Research Policy, Elsevier, vol. 38(6), pages 1006-1020, July.
    16. YoungJun Kim & Nicholas S. Vonortas, 2006. "Determinants of technology licensing: the case of licensors," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 235-249.
    17. Geweke, J. & Joel Horowitz & Pesaran, M.H., 2006. "Econometrics: A Bird’s Eye View," Cambridge Working Papers in Economics 0655, Faculty of Economics, University of Cambridge.
    18. Baoyun Qiao & Jorge Martinez-Vazquez & Yongsheng Xu, 2002. "Growth and Equity Tradeoff in Decentralization Policy: China's Experience," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0216, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    19. Ulf‐ G. Gerdtham, 1997. "Equity in Health Care Utilization: Further Tests Based on Hurdle Models and Swedish Micro Data," Health Economics, John Wiley & Sons, Ltd., vol. 6(3), pages 303-319, May.
    20. Li, Lei & Luo, Changtuo, 2023. "Does administrative decentralization promote outward foreign direct investment and productivity? Evidence from China," Economic Modelling, Elsevier, vol. 124(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:17:y:2020:i:15:p:5350-:d:389503. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.