IDEAS home Printed from https://ideas.repec.org/a/spr/climat/v177y2024i7d10.1007_s10584-024-03759-6.html
   My bibliography  Save this article

Engage or retreat? Exploring the determinants of participation in Climate Finance public-private partnerships

Author

Listed:
  • Vu Minh Ngo

    (University of Economic Ho Chi Minh City)

  • Huan Huu Nguyen

    (University of Economic Ho Chi Minh City)

  • Hiep Cong Pham

    (RMIT University (Vietnam), The Business School)

  • Long Hoang Nguyen

    (University of Economic Ho Chi Minh City- Vinhlong Campus, 1B Nguyen Trung Truc)

Abstract

The urgent need for climate action and sustainable development has elevated the importance of Public-Private Partnerships (PPPs) in climate finance. While PPPs are crucial for mobilizing resources for climate finance, the factors influencing the willingness of different stakeholders to participate in these partnerships are not well understood. This study employs a multifaceted analytical approach, integrating theoretical insights from Stakeholder Theory, Transaction Cost Economics, and Agency Theory. We conduct a Tobit regression analysis to investigate the determinants of willingness to participate in climate finance PPPs among three key stakeholder groups: Governors, Firms, and the Public. Using survey data collected from over 1600 participants in Vietnam’s Mekong Delta, this research examines the influence of perceived benefits, perceptions of PPPs, the importance of climate finance, trust and transparency, and multilateral support on stakeholders’ willingness to participate in PPPs for climate finance. The analysis reveals that the perceived benefits of PPPs and trust and transparency universally enhance the willingness to participate across all groups of stakeholders. However, the impact of positive perceptions of PPPs varies, playing a crucial role for firms and the public but not for governors. The study also highlights the significance of understanding and emphasizing the importance of climate finance, particularly when combined with trust and transparency, in encouraging stakeholder participation. Furthermore, by revealing the varied impacts of determinants across stakeholder groups, this research points to the necessity of adopting differentiated approaches to maximize participation in PPPs for climate finance, thereby supporting sustainable development and climate action goals.

Suggested Citation

  • Vu Minh Ngo & Huan Huu Nguyen & Hiep Cong Pham & Long Hoang Nguyen, 2024. "Engage or retreat? Exploring the determinants of participation in Climate Finance public-private partnerships," Climatic Change, Springer, vol. 177(7), pages 1-30, July.
    • Handle: RePEc:spr:climat:v:177:y:2024:i:7:d:10.1007_s10584-024-03759-6
    DOI: 10.1007/s10584-024-03759-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10584-024-03759-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10584-024-03759-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Asheem Shrestha & Jolanta Tamošaitienė & Igor Martek & M Reza Hosseini & David J Edwards, 2019. "A Principal-Agent Theory Perspective on PPP Risk Allocation," Sustainability, MDPI, vol. 11(22), pages 1-18, November.
    2. Jennifer M. Brinkerhoff & Derick W. Brinkerhoff & Derick W. Brinkerhoff & Jennifer M. Brinkerhoff, 2011. "Public–private partnerships: Perspectives on purposes, publicness, and good governance," Public Administration & Development, Blackwell Publishing, vol. 31(1), pages 2-14, February.
    3. Cui, Lianbiao & Huang, Yuran, 2018. "Exploring the Schemes for Green Climate Fund Financing: International Lessons," World Development, Elsevier, vol. 101(C), pages 173-187.
    4. Mizan R. Khan & Sirazoom Munira, 2021. "Climate change adaptation as a global public good: implications for financing," Climatic Change, Springer, vol. 167(3), pages 1-18, August.
    5. Josué Banga, 2019. "The green bond market: a potential source of climate finance for developing countries," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 9(1), pages 17-32, January.
    6. Elizabeth Jordan & Martha Gross & Amy Javernick-Will & Michael Garvin, 2011. "Use and misuse of qualitative comparative analysis," Construction Management and Economics, Taylor & Francis Journals, vol. 29(11), pages 1159-1173.
    7. Sebastian Zwalf, 2022. "Managing goal conflict. The case of agency theory in the policy settings for public–private partnerships; A perspective on citizen and government interests," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(4), pages 913-930, December.
    8. Carter Boon Casady, 2021. "Examining the institutional drivers of Public-Private Partnership (PPP) market performance: a fuzzy set Qualitative Comparative Analysis (fsQCA)," Public Management Review, Taylor & Francis Journals, vol. 23(7), pages 981-1005, July.
    9. Gary D. Libecap, 2014. "Addressing Global Environmental Externalities: Transaction Costs Considerations," Journal of Economic Literature, American Economic Association, vol. 52(2), pages 424-479, June.
    10. Kotchen, Matthew J. & Costello, Christopher, 2018. "Maximizing the impact of climate finance: Funding projects or pilot projects?," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 270-281.
    11. Ermanno C. Tortia & Florence Degavre & Simone Poledrini, 2020. "Why are social enterprises good candidates for social innovation? Looking for personal and institutional drivers of innovation," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(3), pages 459-477, September.
    12. Macher Jeffrey T & Richman Barak D, 2008. "Transaction Cost Economics: An Assessment of Empirical Research in the Social Sciences," Business and Politics, De Gruyter, vol. 10(1), pages 1-65, May.
    13. Fredriksson, Per G. & Wang, Le & Mamun, Khawaja A., 2011. "Are politicians office or policy motivated? The case of U.S. governors' environmental policies," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 241-253, September.
    14. Natasha Haruka Collins & Courtney A. Schultz, 2021. "Why companies fund climate change projects on national forests: insights into the motivations of the Forest Service’s corporate partners," Climatic Change, Springer, vol. 169(3), pages 1-26, December.
    15. Chesney Callens & Koen Verhoest & Jan Boon, 2022. "Combined effects of procurement and collaboration on innovation in public-private-partnerships: a qualitative comparative analysis of 24 infrastructure projects," Public Management Review, Taylor & Francis Journals, vol. 24(6), pages 860-881, June.
    16. P. P. Stoll & W. P. Pauw & F. Tohme & C. Grüning, 2021. "Mobilizing private adaptation finance: lessons learned from the Green Climate Fund," Climatic Change, Springer, vol. 167(3), pages 1-19, August.
    17. R. Edward Freeman & Andrew C. Wicks & Bidhan Parmar, 2004. "Stakeholder Theory and “The Corporate Objective Revisited”," Organization Science, INFORMS, vol. 15(3), pages 364-369, June.
    18. 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.
    19. Philipp Pattberg, 2010. "Public–private partnerships in global climate governance," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 1(2), pages 279-287, March.
    20. Pappas, Ilias O. & Woodside, Arch G., 2021. "Fuzzy-set Qualitative Comparative Analysis (fsQCA): Guidelines for research practice in Information Systems and marketing," International Journal of Information Management, Elsevier, vol. 58(C).
    21. Sascha Kraus & Domingo Ribeiro-Soriano & Miriam Schüssler, 2018. "Fuzzy-set qualitative comparative analysis (fsQCA) in entrepreneurship and innovation research – the rise of a method," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 15-33, March.
    22. Silaghi, Florina & Sarkar, Sudipto, 2021. "Agency problems in public-private partnerships investment projects," European Journal of Operational Research, Elsevier, vol. 290(3), pages 1174-1191.
    23. Macher, Jeffrey T. & Richman, Barak D., 2008. "Transaction Cost Economics: An Assessment of Empirical Research in the Social Sciences," Business and Politics, Cambridge University Press, vol. 10(1), pages 1-63, April.
    24. Bauer, Rob & Smeets, Paul, 2015. "Social identification and investment decisions," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 121-134.
    25. Nadia Ameli & Paul Drummond & Alexander Bisaro & Michael Grubb & Hugues Chenet, 2020. "Climate finance and disclosure for institutional investors: why transparency is not enough," Climatic Change, Springer, vol. 160(4), pages 565-589, June.
    26. Josué Banga, 2019. "The green bond market : a potential source of climate finance for developing countries," Post-Print halshs-01841868, HAL.
    27. Andrew L. Friedman & Samantha Miles, 2002. "Developing Stakeholder Theory," Journal of Management Studies, Wiley Blackwell, vol. 39(1), pages 1-21, January.
    Full references (including those not matched with items on IDEAS)

    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. Kate Odziemkowska & Sinziana Dorobantu, 2021. "Contracting Beyond the Market," Organization Science, INFORMS, vol. 32(3), pages 776-803, May.
    2. Lu, Qiongfang & Wilson, Craig, 2024. "Infrastructure financing in Africa," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    3. Miklesh Yadav & Nandita Mishra & Shruti Ashok, 2023. "Dynamic connectedness of green bond with financial markets of European countries under OECD economies," Economic Change and Restructuring, Springer, vol. 56(1), pages 609-631, February.
    4. Carlos Omar Trejo-Pech & Roselia Servín-Juárez & Álvaro Reyes-Duarte, 2023. "What sets cooperative farmers apart from non-cooperative farmers? A transaction cost economics analysis of coffee farmers in Mexico," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-24, December.
    5. Sharon Novak & Scott Stern, 2009. "Complementarity Among Vertical Integration Decisions: Evidence from Automobile Product Development," Management Science, INFORMS, vol. 55(2), pages 311-332, February.
    6. Schneider, Christian O. & Bremen, Philipp & Schönsleben, Paul & Alard, Robert, 2013. "Transaction cost economics in global sourcing: Assessing regional differences and implications for performance," International Journal of Production Economics, Elsevier, vol. 141(1), pages 243-254.
    7. Rhys Andrews & Malcolm J. Beynon, 2019. "Configurational Analysis of Access to Basic Infrastructure Services: Evidence from Turkish Provinces," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(5), pages 1341-1370, December.
    8. Sharon Novak & Scott Stern, 2008. "How Does Outsourcing Affect Performance Dynamics? Evidence from the Automobile Industry," Management Science, INFORMS, vol. 54(12), pages 1963-1979, December.
    9. Husain, Shaiara & Sohag, Kazi & Wu, Yanrui, 2022. "The response of green energy and technology investment to climate policy uncertainty: An application of twin transitions strategy," Technology in Society, Elsevier, vol. 71(C).
    10. Giorgio Zanarone & Desmond (Ho-Fu) Lo & Tammy L. Madsen, 2016. "The double-edged effect of knowledge acquisition: How contracts safeguard pre-existing resources," Strategic Management Journal, Wiley Blackwell, vol. 37(10), pages 2104-2120, October.
    11. Xue, Biao & Lin, Yan & Ren, Fangxiao & Li, Runfo, 2024. "Business environment ecosystem and manufacturing upgrading: A configurational approach," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1225-1237.
    12. Thomas Mellewigt & Glenn Hoetker & Martina Lütkewitte, 2018. "Avoiding High Opportunism Is Easy, Achieving Low Opportunism Is Not: A QCA Study on Curbing Opportunism in Buyer–Supplier Relationships," Organization Science, INFORMS, vol. 29(6), pages 1208-1208, December.
    13. Emilia Obiñska-Wajda, 2016. "The new institutional economics - main theories," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 12(1), pages 78-85, June.
    14. Timo Busch & Michael L. Barnett & Roger Leonard Burritt & Benjamin W. Cashore & R. Edward Freeman & Irene Henriques & Bryan W. Husted & Rajat Panwar & Jonatan Pinkse & Stefan Schaltegger & Jeff York, 2024. "Moving beyond “the” business case: How to make corporate sustainability work," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 776-787, February.
    15. Hermano, Víctor & Martín-Cruz, Natalia, 2013. "How to Deliver Foreign Aid? The Case of Projects Governed by the Spanish International Agency," World Development, Elsevier, vol. 43(C), pages 298-314.
    16. Williamson, Oliver E., 2010. "Transaction Cost Economics: The Natural Progression," Journal of Retailing, Elsevier, vol. 86(3), pages 215-226.
    17. Riaz Tabassum & Selama Aslam Izah & Nor Normaziah Mohd & Hassan Ahmad Fahmi Sheikh, 2024. "Meaningful Review of Existing Trends, Expansion, and Future Directions of Green Bond Research: A Bibliometric Approach," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 34(1), pages 1-36, March.
    18. Seggie, Steven H. & Griffith, David A., 2021. "The moderating effects of economic and strategic relationship value in tolerating active and passive opportunism," Journal of Business Research, Elsevier, vol. 128(C), pages 233-244.
    19. Ren, Xiaohang & Li, Yiying & yan, Cheng & Wen, Fenghua & Lu, Zudi, 2022. "The interrelationship between the carbon market and the green bonds market: Evidence from wavelet quantile-on-quantile method," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    20. Geoffrey M. Hodgson, 2010. "Limits of Transaction Cost Analysis," Chapters, in: Peter G. Klein & Michael E. Sykuta (ed.), The Elgar Companion to Transaction Cost Economics, chapter 28, Edward Elgar Publishing.

    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:spr:climat:v:177:y:2024:i:7:d:10.1007_s10584-024-03759-6. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.