The Evolutionary Game of Stakeholders’ Coordination Mechanism of New Energy Power Construction PPP Project: A China Case

Abstract

The government, investors, and the public have formed a dynamic multi-game relationship on the Public-Private-Partnership (PPP) project, but few studies include them in a system to study their win–win solutions. Firstly, we constructed a tripartite game model of the government, investors, and the public based on evolutionary game theory. Secondly, the evolutionary process of tripartite strategy behaviors was studied with the system dynamics (SD) model. Finally, the impact of changes in key factors on behavior strategies was studied through sensitivity analysis. The results show the following: (1) In the outsourcing of new energy and power construction PPP projects, the three parties will eventually reach the equilibrium state of {government supervision, public participation, investors effort}, the three parties achieve a win–win situation and the project benefits are the highest at this time, and the public participation will play an important role in promoting the smooth outsourcing of PPP projects. (2) The strategic choices of the government, investors, and the public are sensitive to changes in the corresponding exogenous variables. (3) The security factor plays a crucial role in the choice of public strategy. The public’s choice is not only affected by its own income and cost, but also by the amount of compensation promised by the government and the estimated damage caused by the investor.

Opportunistic Behavior Governance in PPP Projects: An Analysis Based on Trust Networks

“…In fact, PPP project stakeholders in the bidding stage mainly include the urban development department, financial department, project implementing institution, urban construction investment companies, other government departments, exploration and design companies, engineering consulting companies, potential private investors, financial institutions, and the public [39,40]. Among them, financial institutions typically include investment banks or foundations, while the urban development and financial departments are usually responsible for the development of the city and the management of the financial revenue and expenditures [44].…”

Conceptualizing a win–win scenario in public–private partnerships: evidence from a systematic literature review

“…Furthermore, Carbonara and Pellegrino (2018b) developed a concession price which minimizes the difference between the net profits gained by the contracting parties as a means of attaining win–win situation. Gao and Zhao (2020) also approached win–win from a strategic contract negotiation process. Based on an energy power construction project, they applied strategic games (from game theory) to develop a strategic contract negotiation process to obtain a Nash equilibrium.…”

Incentive Mechanism for Municipal Solid Waste Disposal PPP Projects in China

“…Therefore, specific governance instruments and incentives are needed to encourage investors to adopt positive attitudes toward cooperation [24,25]. Complementary regulatory strategies should also be adopted to safeguard the interests of all parties [26].…”