The negative impacts of climate change on the environment and economic activities are increasingly obvious and relevant. Private response to this threat often proves to be inadequate. For example, empirical evidence reveals a sub-optimal investment by firms in energy efficiency projects capable of reducing energy costs and CO2 emissions, as well as adaptation projects able to reduce the vulnerability of the ecosystem. On the other hand, past public programs that provided financial subsidies to the above-mentioned projects have proven to be not particularly cost-effective or able to enhance final performances. In this paper, as an alternative to public subsidies, we propose and assess the opportunity to implement Public-Private Partnerships (PPPs) where the public regulator plays a more active role in the investment choice. Precisely, we model the decision-making process through a Nash bargaining procedure between public and private actors. We end up with two main results: (i) compared to public subsidies, the use of PPPs leads to higher outcomes/performances and allows governments to overcome incompleteness in contracts; (ii) PPPs are optimally chosen only when there is a fair allocation of the bargaining power between the two sides and when bargaining procedures are not perceived as being too lengthy or costly.
The negative impacts of climate change on the environment and economic activities are increasingly obvious and relevant. Private response to this threat often proves to be inadequate. For example, empirical evidence reveals a sub-optimal investment by firms in energy efficiency projects capable of reducing energy costs and CO2 emissions, as well as adaptation projects able to reduce the vulnerability of the ecosystem. On the other hand, past public programs that provided financial subsidies to the above-mentioned projects have proven to be not particularly cost-effective or able to enhance final performances. In this paper, as an alternative to public subsidies, we propose and assess the opportunity to implement Public-Private Partnerships (PPPs) where the public regulator plays a more active role in the investment choice. Precisely, we model the decision-making process through a Nash bargaining procedure between public and private actors. We end up with two main results: (i) compared to public subsidies, the use of PPPs leads to higher outcomes/performances and allows governments to overcome incompleteness in contracts; (ii) PPPs are optimally chosen only when there is a fair allocation of the bargaining power between the two sides and when bargaining procedures are not perceived as being too lengthy or costly.
Titre
en
Public-private partnerships as a policy response to climate change
Auteur(s)
Anne Stenger-Letheux1, 2
, Marco Buso3, 4
1
BETA -
Bureau d'Économie Théorique et Appliquée
( 93745 )
- Université de Lorraine, UFR Droit Sciences Economiques et Gestion, 13 place Carnot CO 70026, 54035 Nancy Cedex
Université de Strasbourg, Faculté des Sciences Economiques et de Gestion, 61 avenue de la Forêt Noire 67085 Strasbourg Cedex
- France
Institut National de la Recherche Agronomique UMR1443 ( 92114 )
;
Université de Strasbourg ( 199013 )
;
Université de Lorraine ( 413289 )
;
Centre National de la Recherche Scientifique UMR7522 ( 441569 )
2
AgroParisTech
( 148117 )
- 22 place de l'Agronomie CS 20040 91123 Palaiseau cedex
- France
3
Interdept Ctr Giorgio Levi Cases, CRIEP Interuniv Res Ctr Publ Econ
( 549235 )
- Italie
Università degli Studi di Padova = University of Padua ( 301093 )
4
Unipd -
Università degli Studi di Padova = University of Padua
( 301093 )
- Via 8 Febbraio 2, 35122 Padova
- Italie
Public visé
Scientifique
Sous-type de document pour les Articles
Research article
Page/Identifiant
487-494
Volume
119
Comité de lecture
Oui
Audience
Non spécifiée
Date de publication
2018
Langue du document
Anglais
Nom de la revue
Energy Policy
(ISSN : 0301-4215)
Publié par Elsevier
Revue non référencée dans Sherpa-Romeo
Vulgarisation
Non
Domaine(s)
Sciences du Vivant [q-bio]
Sciences de l'Homme et Société/Economies et finances
Anne Stenger-Letheux, Marco Buso. Public-private partnerships as a policy response to climate change. Energy Policy, 2018, 119, pp.487-494. ⟨10.1016/j.enpol.2018.04.063⟩. ⟨hal-01952098⟩