Determinants of Public-Private Partnership Adoption in Solid Waste Management in Rural China

Abstract

Rural solid waste management is a severe challenge in China. The Public-Private Partnership (PPP) is an effective method for rural solid waste management. However, policy efforts aimed at stimulating the adoption of PPP in rural solid waste management have been limited in their success. This study aims to empirically investigate the determinants of rural solid waste management PPP adoption in China. First, this study builds a theoretical model that consists of factors related to the institutional environment and market and proposes theoretical hypotheses. Then, using the balanced provincial panel data of 150 samples from 2015 to 2019, this study applies various count regression models and truncated regression models to empirically test the theoretical hypotheses. The results show that provinces with higher fiscal transparency, financial burdens, and market demand tend to adopt more PPP, while provinces with lower per capita GDP and market openness index ratings have a stronger motivation to initiate more PPP. In contrast, investment institutional environment factors have no impact on PPP adoption. To stimulate the development of PPP in rural solid waste management, this study proposed that a good-governed government and a strong market demand are critical foundations, and also a debt-risk prevention and evaluation system should be established to avoid local debt risks resulting from over-adoption of PPP.

Status and Development of Agricultural Public-Private Partnership Program Implementation in China

“…The agricultural PPP project is also involved in the construction of an agricultural product processing base, agricultural products trading center construction, various types of agricultural production means of trading venues, warehousing construction, and other projects. For example, the government of Yutian County in Xinjiang, China, has invested 636 million yuan with social capital to build a PPP project of deep processing base for agricultural products using BOT mode to produce various kinds of agricultural products (Pan et al, 2020). In PPP agricultural parks, the private sector utilizes technology and capital to increase research and development of crops, scientific production management of crops, and the yield of agricultural products.…”

Public-private partnerships for the circular bioeconomy in the Global South: lessons learned

“…The importance of marketing strategies and market linkages A well-established market environment reduces transaction costs between the private sector and the government, thereby facilitating the adoption of PPP (Pan et al 2020). Pan et al (2020) note good governance and strong market demand to be powerful factors for PPP adoption. A welldeveloped market environment for the end products of resource recovery stimulates the PPP adoption.…”

“…Consequently, the PPP framework must ensure functional coordination between all respective parties or contractors. According to the literature, PPP projects in waste management and RRR are relatively slow due to inefficient institutions, limited governance and weak market linkages (Chatri et al 2012;Pan et al 2020). A good institutional environment and other market factors will attract private sector actors for the PPP project, increase private sector profits and temper stakeholder conflicts (Tan and Zhao 2019;Yang et al 2013).…”

Circular Economy in the Food Chain: Production, Processing and Waste Management

“…China has governmental policies for waste collection recovery, with a centralized system for cities and small villages, as well as examples of public-private partnerships initiatives regarding the waste management of rural solid waste. However, the resistance of villagers is a bottleneck for reaching recycling targets [ 18 ] as well as market demands and fiscal transparency issues [ 19 ].…”