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Simulation-based dynamic adjustments of prices and subsidies for transportation PPP projects based on stakeholders’ satisfaction

Author

Listed:
  • Jingfeng Yuan

    (Southeast University)

  • Wenying Ji

    (George Mason University)

  • Jiyue Guo

    (Southeast University)

  • Mirosław J. Skibniewski

    (University of Maryland
    Polish Academy of Sciences
    Chaoyang University of Technology)

Abstract

s Public–private partnership (PPP) has been well acknowledged by many as an innovative approach to the procurement of public projects. In their long-term concession periods, various uncertain factors lead to the difficulties in implementing the concession contracts. Historical projects have proven that unexpected changes of projects will inevitably result in the adjustment of prices of the private sector and subsidies from the public sector. Therefore, a dynamic price and subsidy adjustment model is desired, to balance the satisfaction of all involved stakeholders (i.e., public sector, private sector, and general public). In the present study, a system dynamics model, which balances the tripartite satisfaction in PPPs, was established. A PPP bridge case study was conducted to demonstrate that the proposed model is applicable and can function for future PPP projects. Model validation, sensitivity analysis, model application, and result analysis were included as well. Further recommendations and conclusions were made to help practitioners to improve the model implementation in transportation PPP projects to increase the likelihood of achieving tripartite satisfaction. This research also sheds light on the price and subsidy adjustments for other types of PPP projects.

Suggested Citation

  • Jingfeng Yuan & Wenying Ji & Jiyue Guo & Mirosław J. Skibniewski, 2019. "Simulation-based dynamic adjustments of prices and subsidies for transportation PPP projects based on stakeholders’ satisfaction," Transportation, Springer, vol. 46(6), pages 2309-2345, December.
    • Handle: RePEc:kap:transp:v:46:y:2019:i:6:d:10.1007_s11116-018-9940-1
    DOI: 10.1007/s11116-018-9940-1
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    References listed on IDEAS

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    3. Zhao, Jianfeng & Greenwood, David & Thurairajah, Niraj & Liu, Henry J. & Haigh, Richard, 2022. "Value for money in transport infrastructure investment: An enhanced model for better procurement decisions," Transport Policy, Elsevier, vol. 118(C), pages 68-78.
    4. Liu, Huimin & Song, Shuang & Hu, Yi & Yan, Xue, 2020. "Monte-Carlo optimization model for dynamic capital structure adjustment in Chinese public-private partnerships under revenue uncertainty," Transportation Research Part A: Policy and Practice, Elsevier, vol. 142(C), pages 115-128.
    5. Zhao, Jianfeng & Liu, Henry J. & Love, Peter E.D. & Greenwood, David J. & Sing, Michael C.P., 2022. "Public-private partnerships: A dynamic discrete choice model for road projects," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    6. Fenling Feng & Tianzuo Zhang & Chengguang Liu & Lifeng Fan, 2020. "China Railway Express Subsidy Model Based on Game Theory under “the Belt and Road” Initiative," Sustainability, MDPI, vol. 12(5), pages 1-16, March.

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