ORIGINAL PAPER
Integrated models of the combination of EU grant funding and private funding in the energy sector of Ukraine based on Public-Private Partnership
1
Silesian University of Technology, Poland
2
Department Applied Social Science, Silesian University of Technology, Poland
3
Academy of Economic Sciences of Ukraine, Ukraine
4
Institute of Industrial Economy of the National Academy of Sciences of Ukraine, Ukraine
Submission date: 2023-08-01
Final revision date: 2023-08-16
Acceptance date: 2023-08-17
Publication date: 2023-12-19
Polityka Energetyczna – Energy Policy Journal 2023;26(4):165-194
KEYWORDS
TOPICS
ABSTRACT
The post-war reconstruction of the energy sector of Ukraine is a critical issue that requires significant investment in both infrastructure and modernization. However, the limited financing of the public sector is a problem that needs to be addressed. A combination of European Union (EU) grant funding and private funding through public-private partnerships (PPPs) has been suggested as a potential solution to this problem. The relevance of this topic lies in the potential of PPPs to attract resources and experience from both the public and private sectors. This can lead to a more efficient use of resources and can help solve the problems associated with limited public sector funding. In addition, PPPs can provide a framework for sharing risks between the public and private sectors and can help mobilize private sector resources and expertise, which can be critical in post-war reconstruction efforts. In addition, a combination of EU grant funding and private funding through PPPs can contribute to broader economic development by promoting investment in the energy sector. This can help stimulate economic growth, create jobs and improve energy security, which is critical for the long-term sustainability of Ukraine’s energy sector. Thus, the topic of combined models of uniting EU grant funding and private funding based on public-private partnership for the post-war reconstruction of the energy sector of Ukraine is extremely relevant for solving problems related to limited public sector funding, attracting resources and experience from both public and private sectors as well as promoting the broader economic development of Ukraine.
METADATA IN OTHER LANGUAGES:
Polish
Zintegrowane modele łączenia dofinansowania unijnego i prywatnego w sektorze energetycznym Ukrainy w oparciu o partnerstwo publiczno-prywatne
VOSviewer, partnerstwo publiczno-prywatne, powojenna odbudowa Ukrainy, infrastruktura energetyczna, sektor energetyczny
Powojenna odbudowa sektora energetycznego Ukrainy jest kwestią krytyczną, wymagającą znacznych inwestycji w infrastrukturę i modernizację. Problemem wymagającym rozwiązania jest jednak ograniczone finansowanie sektora publicznego. Jako potencjalne rozwiązanie tego problemu zaproponowano połączenie dotacji UE i finansowania prywatnego w ramach partnerstwa publiczno-prywatnego (PPP). Istotność tego tematu polega na potencjale PPP w zakresie przyciągania zasobów i doświadczenia zarówno z sektora publicznego, jak i prywatnego. Może to prowadzić do bardziej efektywnego wykorzystania zasobów i pomóc w rozwiązaniu problemów związanych z ograniczonym finansowaniem sektora publicznego. Ponadto PPP mogą zapewnić ramy podziału ryzyka między sektor publiczny i prywatny oraz mogą pomóc w mobilizacji zasobów i wiedzy fachowej sektora prywatnego, co może mieć kluczowe znaczenie w powojennych wysiłkach na rzecz odbudowy. Ponadto połączenie dotacji UE i finansowania prywatnego za pośrednictwem PPP może przyczynić się do szerszego rozwoju gospodarczego poprzez promowanie inwestycji w sektorze energetycznym. Może to pomóc w stymulowaniu wzrostu gospodarczego, tworzeniu miejsc pracy i poprawie bezpieczeństwa energetycznego, co ma kluczowe znaczenie dla długoterminowej stabilności ukraińskiego sektora energetycznego. Zatem temat połączonych modeli łączenia dofinansowania unijnego i prywatnego w oparciu o partnerstwo publiczno-prywatne na rzecz powojennej odbudowy sektora energetycznego Ukrainy jest niezwykle istotny dla rozwiązywania problemów związanych z ograniczonym finansowaniem sektora publicznego, przyciąganiem środków i doświadczeń zarówno z sektora publicznego, jak i prywatnego, a także promowanie szerszego rozwoju gospodarczego Ukrainy.
REFERENCES (76)
2.
Abdouli, M. and Hammami, S. 2017. Investigating the causality links between environmental quality, foreign direct investment and economic growth in MENA countries. International Business Review 26(2), pp. 264–278, DOI: 10.1016/j.ibusrev.2016.07.004.
3.
Abdullah, A. and Khadaroo, I. 2020. The trust-control nexus in public private partnership (PPP) contracts. Journal of Accounting and Public Policy 3(6), DOI: 10.1016/j.jaccpubpol.2020.106768.
4.
Adebayo et al. 2021 – Adebayo, T.S., Genç, S.Y., Castanho, R.A. and Kirikkaleli, D. 2021. Do public–private partnership investment in energy and technological innovation matter for environmental sustainability in the East Asia and Pacific region? An application of a frequency domain causality test. Sustainability 13 (6), DOI: 10.3390/su13063039.
5.
Agency on Support Public-Private Partnership 2022. The virtual workshop “Energy sector and the opportunities for Public-Private Partnership” has taken place. [Online] https://pppagency.me.gov.ua/th... [Accessed: 2023-09-23].
6.
Agency on Support Public-Private Partnership 2023. The Director of the PPP Agency took part in the online event “Development of the modern energy system of Ukraine: microgrid, alternative, green and renewable energy”. [Online] https://pppagency.me.gov.ua/uk... [Accessed: 2023-09-23].
7.
Ahmad, M. and Raza, M.Y. 2020. Role of public-private partnerships investment in energy and technological innovations in driving climate change: evidence from Brazil. Environmental Science and Pollution Research 27, pp. 30638–30648, DOI: 10.1007/s11356-020-09307-w.
8.
Ahmad et al. 2020 – Ahmad, M., Jiang, P., Majeed, A. and Raza, M.Y. 2020. Does financial development and foreign direct investment improve environmental quality? Evidence from belt and road countries. Environmental Science and Pollution Research 27, pp. 23586–23601, DOI: 10.1007/s11356-020-08748-7.
9.
Akinsola et al. 2022 – Akinsola, G.D., Awosusi, A.A., Kirikkaleli, D., Umarbeyli, S., Adeshola, I. and Adebayo, T.S. 2022. Ecological footprint, public-private partnership investment in energy, and financial development in Brazil: a gradual shift causality approach. Environmental Science and Pollution Research 29, pp. 10077–10090, DOI: 10.1007/s11356-021-15791-5.
10.
Alloisio, I. and Carraro, C. 2015. Public-Private Partnerships for Energy Infrastructure: A Focus on the MENA Region. [In:] Caselli, S., Corbetta, G., Vecchi, V. (eds) Public Private Partnerships for Infrastructure and Business Development. Palgrave Macmillan, New York, pp. 149–168, DOI: 10.1057/9781137541482_9.
11.
Apergis et al. 2013 – Apergis, N., Eleftheriou, S. and Payne, J.E. 2013. The relationship between international financial reporting standards, carbon emissions, and R&D expenditures: evidence from European manufacturing firms. Ecological Economics 88, pp. 57–66, DOI: 10.1016/j.ecolecon.2012.12.024.
12.
Álvarez-Herránz et al. 2017 – Álvarez-Herranz, A., Balsalobre-Lorente, D., Shahbaz, M. and Cantos, J.M. 2017. Energy innovation and renewable energy consumption in the correction of air pollution levels. Energy Policy 105, pp. 386–397, DOI: 10.1016/j.enpol.2017.03.009.
13.
Álvarez-Herránz et al. 2017 – Álvarez-Herránz, A., Balsalobre, D., Cantos, J.M. and Shahbaz, M. 2017. Energy innovations-GHG emissions nexus: fresh empirical evidence from OECD countries. Energy Policy 101, pp. 90–100, DOI: 10.1016/j.enpol.2016.11.030.
14.
Baloch et al. 2019 – Baloch, M.A., Danish and Meng, F. 2019. Modeling the non-linear relationship between financial development and energy consumption: statistical experience from OECD countries. Environmental Science and Pollution Research 26, pp. 8838–8846, DOI: 10.1007/s11356-019-04317-9.
15.
Behera, S.R. and Dash, D.P. 2017. The effect of urbanization, energy consumption, and foreign direct investment on carbon dioxide emissions in the SSEA (South and Southeast Asian) region. Renewable and Sustainable Energy Reviews 70, pp. 96–106, DOI: 10.1016/j.rser.2016.11.201.
16.
Bilous, A. 2021. Public-private partnerships in Ukraine: Will this time be different? VoxUkraine. [Online] https://voxukraine.org/en/publ... [Accessed: 2023-09-23].
17.
Blending EU Structural and Investment Funds and PPPs in the 2014–2020 Programming Period. Guidance Note European PPP Expertise Centre. January 2016. [Online] https://www.eib.org/attachment... [Accessed: 2023-09-23].
18.
Buso, M. and Stenger, A. 2018. Public-private partnerships as a policy response to climate change. Energy Policy 119, pp. 487–494, DOI: 10.1016/j.enpol.2018.04.063.
19.
Cheng et al. 2021a – Cheng, G., Zhao, Ch., Iqbal, N., Gulmez, Ö., Işik, H. and Kirikkaleli, D. 2021. Does energy productivity and public-private investment in energy achieve carbon neutrality target of China? Journal of Environmental Management 298, DOI: 10.1016/ j.jenvman.2021.113464.
20.
Cheng et al. 2021b – Cheng, Z., Wang, H., Xiong, W., Zhu, D. and Cheng, L. 2021. Public–private partnership as a driver of sustainable development: towards a conceptual framework of sustainability-oriented PPP. Environment, Development and Sustainability 23(1), pp. 1043–1063, DOI: 10.1007/s10668-019-00576-1.
21.
Chishti, M.Z. and Sinha, A. 2022. Do the shocks in technological and financial innovation influence the environmental quality? Evidence from BRICS economies. Technology in Society 68, DOI: 10.1016/j.techsoc.2021.101828.
22.
Chunling et al. 2021 – Chunling, L., Memon, J.A., Thanh, T.L., Ali, M. and Kirikkaleli, D. 2021. The Impact of Public-Private Partnership Investment in Energy and Technological Innovation on Ecological Footprint: The Case of Pakistan. Sustainability 13(18), DOI: 10.3390/su131810085.
23.
Climate Bonds Initiative, Climate Resilience Consulting and World Resources Institute 2019. Climate Resilience Principles: A framework for assessing climate resilience investments. [Online] https://www.climatebonds.net/f... [Accessed: 2023-08-03].
24.
Cui et al. 2018 – Cui, C., Liu, Y., Hope, A. and Wang, J. 2018. Review of studies on the public–private partnerships (PPP) for infrastructure projects. International Journal of Project Management 36(5), pp. 773–794, DOI: 10.1016/j.ijproman.2018.03.004.
25.
Danish et al. 2019 – Danish, B.M.A., Mahmood, N. and Zhang, J.W. 2019. Effect of natural resources, renewable energy and economic development on CO2 emissions in BRICS countries. Science of The Total Environment 678, pp. 632–638, DOI: 10.1016/j.scitotenv.2019.05.028.
26.
EU Funds in PPPs Project Stocktake and Case Studies. EPEC. June 2012. [Online] https://www.eib.org/attachment... [Accessed: 2023-08-03].
27.
European Investment Bank 2022. Sustainable energy and natural resources. [Online] https://www.eib.org/en/about/p... [Accessed: 2023-08-03].
28.
FC-World Bank 2014. Handshake: A Quarterly Journal on Public-Private Partnerships, Advisory Services in Public-Private Partnerships, Issue #13–April 2014.
29.
Ganda, F. 2018. The influence of green energy investments on environmental quality in OECD countries. Environmental Quallity Management 28, pp. 17–29, DOI: 10.1002/tqem.21595.
30.
Ganda, F. 2019. The impact of innovation and technology investments on carbon emissions in selected organizations for economic co-operation and developing countries. Journal of Cleaner Production 217, pp. 469–483, DOI: 10.1016/j.jclepro.2019.01.235.
31.
Gielen et al. 2019 – Gielen, D., Boshell, F., Saygin, D., Bazilian, M.D., Wagner, N. and Gorini, R. 2019. The role of renewable energy in the global energy transformation. Energy Strategy Reviews 24, pp. 38–50, DOI: 10.1016/j.esr.2019.01.006.
32.
Goldsmith, H. 2008. Combining PPP with EU Grants. [In:] Schwartz, G., Corbacho , A., Funke, K. (eds) Public Investment and Public-Private Partnerships. Procyclicality of Financial Systems in Asia. Palgrave Macmillan, London, DOI: 10.1057/9780230593992_11.
33.
Hall et al. 2017 – Hall, S., Foxon, T.J. and Bolton, R. 2017. Investing in low-carbon transitions: energy finance as an adaptive market. Climate Policy 17(3), pp. 280–298, DOI: 10.1080/14693062.2015.1094731.
34.
Hybrid PPPs: Leveraging EU Funds and Private Capital. PwC/PPIAF. Washington: Public Private Infrastructure Advisory Facility 2006. [Online] https://documents1.worldbank.o... [Accessed: 2023-10-03].
35.
IFC-World Bank 2014. Public-Private Partnership Stories, Jordan: Tafila Wind Farm. Washington DC: IFC Advisory Services in Public Private Partnerships.
36.
IFC Advisory Services in Public-Private Partnership 2014. Handshake, International Finance Corporation’s (IFC’s) quarterly journal on public-private partnerships (PPPs), Issue # 13, March 2014. [Online] https://ppp.worldbank.org/publ... [Accessed: 2023-10-03].
37.
Kaltenbrunner, A. and Painceira, J.P. 2018. Subordinated financial integration and financialisation in emerging capitalist economies: the Brazilian experience. New Political Economy 23(3), pp. 290–313, DOI: 10.1080/13563467.2017.1349089.
38.
Khan et al. 2020 – Khan, Z., Ali, M., Kirikkaleli, D., Wahab, S. and Jiao, Z. 2020. The impact of technological innovation and public-private partnership investment on sustainable environment in China: consumption-based carbon emissions analysis. Sustainable Development 28(5), pp. 1317–1330, DOI: 10.1002/sd.2086.
39.
Kirikkaleli, D. and Adebayo, T.S. 2021a. Do public-private partnerships in energy and renewable energy consumption matter for consumption-based carbon dioxide emissions in India? Environmental Science and Pollution Research 28, pp. 30139–30152, DOI: 10.1007/s11356-021-12692-5.
40.
Kirikkaleli, D. and Adebayo, T.S. 2021b. Do renewable energy consumption and financial development matter for environmental sustainability? New global evidence. Sustainable Development 29(4), pp. 583–594, DOI: 10.1002/sd.2159.
41.
Kirikkaleli et al. 2022 – Kirikkaleli, D., Ali, M. and Altuntaş, M. 2022. Environmental sustainability and public–private partnerships investment in energy in Bangladesh. Environmental Science and Pollution Research 29, pp. 56068–56078, DOI: 10.1007/s11356-022-19771-1.
42.
Li et al. 2019 – Li, Z., Dong, H., Huang, Z. and Failler, P. 2019. Impact of foreign direct investment on environmental performance. Sustainability 11(13), DOI: 10.3390/su11133538.
43.
Local economic development: models, resources and tools financing. Grant’s tools financing of the Mayor’s Office. Part 5. Federation Canadian of municipalities / Project international technical assistance “Partnership for development bridge”. 2020. [Online] https://decentralization.gov.u... [Accessed: 2023-09-15].
44.
McCollum et al. 2013 – McCollum, D., Nagai, Y.U., Riahi, K., Marangoni, G., Calvin, K., Pietzcker, R., Van Vliet, J. and Van Der Zwaan, B.O.B. 2013. Energy investments under climate policy: a comparison of global models. Climate Change Economics 4(4), DOI: 10.1142/S2010007813400101.
45.
Ning et al. 2023 – Ning, L., Abbasi, K.R., Hussain, K., Alvarado, R. and Ramzan, M. 2023. Analyzing the role of green innovation and public-private partnerships in achieving sustainable development goals: a novel policy framework. Environmental Science and Pollution Research, DOI: 10.1007/s11356-023-26414-6.
46.
Pattberg et al. 2012 – Pattberg, P., Biermann, F., Chan, C. and Mert, A. 2012. Public-private partnerships for sustainable development: Emergence, influence and legitimacy. [In:] Public-Private Partnerships for Sustainable Development, Emergence, Influence and Legitimacy, DOI: 10.4337/9781849809313.
47.
Pereira et al. 2012 – Pereira, M.G., Camacho, C.F., Freitas, M.A.V. and Da Silva, N.F. 2012. The renewable energy market in Brazil: current status and potential. Renewable and Sustainable Energy Reviews 16(6), pp. 3786–3802, DOI: 10.1016/j.rser.2012.03.024.
48.
PPIAF. Public-Private Infrastructure Advisory Facility. [Online] https://ppiaf.org/about-us [Accessed: 2023-09-15].
49.
Private Participation in Infrastructure (PPI) – World Bank Group 2022. Ukraine Snapshots. [Online] https://ppi.worldbank.org/en/s... [Accessed: 2023-09-15].
50.
Public-private partnership as a tool restoration destroyed infrastructure of Ukraine. Zaporizhzhia Chamber of Commerce and Industry. [Online] https://www.cc.zp.ua/derzhavno... / The Ukrainian government wants to partner countries gave theirs companies state guarantees for investments in Ukraine. [Online] https://forbes.ua/news/ukrains... [Accessed: 2023-09-15].
51.
Public Private Partnership Guide in Ukraine 2018–2019. September 2019. Global Public-Private Partnership Guide 2018–2019, Cakmak Publishing. [Online] https://vkp.ua/en/publication/... [Accessed: 2023-09-15].
52.
Raza et al. 2021 – Raza, S.A., Shah, S.H. and Yousufi, S.Q. 2021. The impact of public-private partnerships Investment in Energy on carbon emissions: evidence from nonparametric causality-in-quantiles. Environmental Science and Pollution Research 28, pp. 23182–23192, DOI: 10.1007/s11356-020-12306-6.
53.
Richter, M. 2012. Utilities’ business models for renewable energy: A review. Renewable and Sustainable Energy Reviews 16(5), 2483–2493, DOI: 10.1016/j.rser.2012.01.072.
54.
Rodríguez et al. 2015 – Rodríguez, M.C., Haščič, I., Johnstone, N., Silva, J. and Ferey, A. 2015. Renewable energy policies and private sector investment: evidence from financial microdata. Environmental and Resource Economics 62, pp. 163–188, DOI: 10.1007/s10640-014-9820-x.
55.
Rosell, J. and Saz-Carranza, A. 2020. Determinants of public–private partnership policies. Public Management Review 22(8), pp. 1171–1190, DOI: 10.1080/14719037.2019.1619816.
56.
Shahbaz et al. 2015 – Shahbaz, M., Nasreen, S., Abbas, F. and Anis, O. 2015. Does foreign direct investment impede environmental quality in high-, middle-, and low-income countries? Energy Economics 51, pp. 275–287, DOI: 10.1016/j.eneco.2015.06.014.
57.
Shahbaz et al. 2020 – Shahbaz, M., Raghutla, C., Song, M., Zameer, H. and Jiao, Z. 2020. Public-private partnerships investment in energy as a new determinant of CO2 emissions: The role of technological innovations in China. Energy Economics 86, DOI: 10.1016/j.eneco.2020.104664.
58.
Stock, J.H. and Watson, M.W. 1993. A simple estimator of cointegrating vectors in higher order integrated systems. Econometrica. Econometrica 61(4), pp. 783–820, DOI: 10.2307/2951763.
59.
The EBRD’s Infrastructure Project Preparation Facility (IPPF). [Online] https://www.ebrd.com/infrastru... [Accessed: 2023-09-15].
60.
The World Bank joined the adaptation work PPP mechanisms for recovery infrastructure of Ukraine. [Online] https://appp.com.ua/svitoviy-b... [Accessed: 2023-11-05].
61.
Tolstolesova et al. 2021 – Tolstolesova, L., Glukhikh, I., Yumanova, N. and Arzikulov, O. 2021. Digital transformation of public-private partnership tools. Journal of Risk and Financial Management, 14(3), DOI: 10.3390/jrfm14030121.
62.
Tufail et al. 2021 – Tufail, M., Song, L., Adebayo, T.S., Kirikkaleli, D. and Khan, S. 2021. Do fiscal decentralization and natural resources curb carbon emissions? Evidence from developed countries. Environmental Science and Pollution Research 28, pp. 49179–49190, DOI: 10.1007/s11356-021-13865-y.
63.
Using EU Funds in PPPs. Explaining the how and Starting the Discussion on the Future. EPEC. May 2011.
64.
Usman, M. and Hammar, N. 2020. Dynamic relationship between technological innovations, financial development, renewable energy, and ecological footprint: fresh insights based on the STIRPAT model for Asia Pacific Economic Cooperation countries. Environmental Science and Pollution Research 28, pp. 15519–15536, DOI: 10.1007/s11356-020-11640-z.
65.
Usman et al. 2020 – Usman, O., Akadiri, S.S. and Adeshola, I. 2020. Role of renewable energy and globalization on ecological footprint in the USA: implications for environmental sustainability. Environmental Science and Pollution Research 27, pp. 30681–30693, DOI: 10.1007/s11356-020-09170-9.
66.
Usman et al. 2021 – Usman, M., Makhdum, M.S.A. and Kousar, R. 2021. Does financial inclusion, renewable and non-renewable energy utilization accelerate ecological footprints and economic growth? Fresh evidence from 15 highest emitting countries. Sustainable Cities and Society 65, DOI: 10.1016/j.scs.2020.102590.
67.
Vagliasindi, M. 2012a. Key Drivers of PPPs in Electricity Generation in Developing Countries: Cross-Country Evidence of Switching between PPP Investment in Fossil Fuel and Renewable-Based Generation. World Bank Policy Research Working Paper 6118. Washington, DC.
68.
Vagliasindi, M. 2012b. The Role of Policy Driven Incentives to Attract PPPs in Renewable-Based Energy in Developing Countries: A Cross-Country Analysis. World Bank Policy Research Working Paper 6120, World Bank, Washington, DC.
69.
Vagliasindi, M. 2012c. The Role of Regulatory Governance in Driving PPPs in Electricity Transmission and Distribution in Developing Countries: A Cross-Country Analysis. Policy Research Working Paper 6121, World Bank, Washington, DC.
70.
Vagliasindi, M. 2013. Revisiting Public-Private Partnerships in the Power Sector. Washington, DC: World Bank, DOI: 10.1596/978-0-8213-9762-6.
71.
Van der Geest, W. and Nunez-Ferrer, J. 2011. Appropriate Financial Instruments for Public-Private Partnership to Boost Cross-Border Infrastructural Development-EU Experience. ADBI Working Paper 281. Tokyo: Asian Development Bank Institute. [Online] https://www.adb.org/sites/defa... [Accessed: 2023-10-17].
72.
Wang, N. and Ma, M. 2021. Public–private partnership as a tool for sustainable development–what does the literature say? Sustainable Development 29(1), pp. 243–258, DOI: 10.1002/sd.2127.
73.
Wang, X. and Cui, X. 2022. PPP Financing Model in the Infrastructure Construction of the Park Integrating Artificial Intelligence Technology. Computational Intelligence and Neuroscience 10, DOI: 10.1155/2022/6154885.
74.
World Bank 2019. The World Bank Group Action Plan on Climate Change Adaptation and Resilience, Washington, DC: World Bank. [Online] https://ppp.worldbank.org/publ... [Accessed: 2023-10-17].
75.
Zameer et al. 2020 – Zameer, H., Yasmeen, H., Zafar, M.W., Waheed, A. and Sinha, A. 2020. Analyzing the association between innovation, economic growth, and environment: divulging the importance of FDI and trade openness in India. Environmental Science and Pollution Research 27(23), pp. 29539–29553, DOI: 10.1007/s11356-020-09112-5.
76.
Zapatrina, I.V. 2017. Public-private partnership for the Sustainable Development Goals. Lybyd.
Share
RELATED ARTICLE
| eISSN: | 2720-569X |
| ISSN: | 1429-6675 |
We process personal data collected when visiting the website. The function of obtaining information about users and their behavior is carried out by voluntarily entered information in forms and saving cookies in end devices. Data, including cookies, are used to provide services, improve the user experience and to analyze the traffic in accordance with the Privacy policy. Data are also collected and processed by Google Analytics tool (more).
You can change cookies settings in your browser. Restricted use of cookies in the browser configuration may affect some functionalities of the website.
You can change cookies settings in your browser. Restricted use of cookies in the browser configuration may affect some functionalities of the website.
