Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2020.1763820
Multiple criteria decision analysis of public investment options: application to streetlighting renewal projects
Damir Juričić
Davor Vašiček
Saša Drezgić
Sažetak
The last global economic crisis set fiscal consolidation as one of
the most relevant goals of economic policy. At the same time,
efforts are necessary to increase economic growth rates, particularly
by increasing quantity and quality of public investment.
However, the lack of fiscal space and other impediments make
these goals hard to attain. On the contrary, in many countries
data show negative dynamics of quantity and quality of public
investment. In terms of energy efficiency investment, trends are
positive. However, the pace of investment significantly underperforms
the goals set. We argue that one of the major reasons is
the lack of financial innovation and project selection methodology.
For this reason, projects have still been mainly financed under
traditional procurement models. Surprisingly, most countries do
not exploit the advantages of alternative models of financing
which do not affect public debt level, significantly reduce fiscal
deficits and reduce fiscal risks. This article argues that a multi-criteria
approach used at the initial stages of project preparation
increases the potential for project realisation and the overall quantity
and quality. In order to provide empirical evidence, we use
information on energy efficiency streetlighting projects and present
a case of a traditional versus alternative financing models.
HIGHLIGHTS
a need for a systematic approach when selecting optimal
financing model is a must;
a lack of financial innovation is one of the most critical impediments
to a higher level of investment in revenue-generating
projects common for the energy efficiency sector;
alternative models of financing enable public investment
increase without harming the fiscal position;
a new methodology for selecting the most preferable model
is presented;
a policy mix should take more comprehensive stance towards
complexity of public investment projects.
Ključne riječi
multiple criteria decision analysis (M.C.D.A.); public investment; public debt; traditional procurement; public–private partnerships (P.P.P.); energy efficiency
Hrčak ID:
254709
URI
Datum izdavanja:
9.2.2021.
Posjeta: 568 *