Sustainable Infrastructure: A Systematic Literature Review on Finance Arrangements and Governance Modes

Abstract

In recent years, the concept of sustainable infrastructure has become a key concern for infrastructure development. However, there has been little comprehensive research on the enabling factors for sustainable infrastructure development. To address these knowledge gaps, this research conducted a systematic literature review of the enabling factors, with a specific focus on finance and governance, to provide new insights for development practitioners and academic scholars. The research first reviewed the characteristics of sustainable infrastructure, identifying several types of definitions. Subsequently, the research identified multiple finance arrangements and governance characteristics that have been applied to sustainable infrastructure. We confirmed that public-private partnerships (PPPs) and multilateral development banks (MDBs) play central and critical roles in leading and including other finance arrangements and governance characteristics of sustainable infrastructure development. In addition, the review suggests there are various governance modes combining horizontal process management with vertical project management for realizing sustainable infrastructure development.

A Systematic Review of Sustainability Criteria in Infrastructure Development

“…To minimize bias and account for potentially relevant topics beyond the initial list, we also provided an extended list of 43 criteria with definitions for participant consideration and prioritization. Cross-referencing the Top 20 as well as the extended list of criteria with the findings of Endo et al [3] in their recent research performed around the same time as our research, there are many overlapping criteria-for example, climate change mitigation, resource efficiency, circular approaches, community orientation, and stakeholder participation and collaboration.…”

“…They do not outline the specific considerations necessary for developing sustainable infrastructure, nor do they suggest actionable steps for the public sector to support its development. This has also been recognized by Endo et al [3] who analysed financing of sustainable infrastructure but identified an issue that there was no uniform definition and specific criteria for sustainable infrastructure itself.…”

“…A recent Scopus search using the term "sustainable infrastructure" yielded over 1200 papers, with engineering taking the lead. Endo et al [3] emphasize that there are two broad categories of research on sustainable infrastructure-technical (design and construction approaches) and nontechnical (project planning and decision-making approaches). Han & Kim [4] advocate for a broader perspective that goes beyond just technological advancements in transportation systems, highlighting the need for a more holistic approach.…”

“…This study delves into the existing understanding of sustainable infrastructure, specifically by addressing the research question: "What are the characteristics of sustainable infrastructure?" Building on research conducted by Endo et al [3] and other researchers who have already analysed the driving factors for sustainable infrastructure, the authors of this study aimed to identify a specific set of criteria which can further be combined and quantified to build a structured decision-making model. By defining these characteristics within a holistic framework, this study can pave the way for the development of more unified assessment methods and effective strategies for sustainable infrastructure development.…”

The Analysis of Sustainable Construction Strategies on the Likupang Special Economic Zone (SEZ)

“…The main obstacle facing the construction industry in developing countries is a concern about more advanced investment costs and the need for more financial incentives [29]. Investment policies are urgently needed to encourage the application of sustainable construction in the Likupang SEZ Project [3].…”