Analysis of Public-Private Partnership Models in the Production of Electric Energy in Water Transmission Lines (Conflicts Resolving by Game Theory Approach)

دانشنامه حقوق اقتصادی

Volume 31, Issue 25, September 2024, Pages 140-166   

Document Type: Scientific research

DOI: 10.22067/economlaw.2024.88220.1372

Authors

Alireza Ghadimi^{* 1}; Mostafa Salimifar²; Ali Akbar Naji Meidani³; Saeed Malek Sadati⁴

¹Ph. D. Candidate of Economics, Department of Economics, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran

²Professor, Department of Economics, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran.

³Associate Professor, Department of Economics, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran.

⁴Assistant Professor, Department of Economics, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran.

Abstract

Among the renewable energy sources, using the energy of water resources to run small electric power plants is very important. However, the government's limited ability to execute projects correctly, on time, and with quality has caused the use of new models of private and public sector participation to be emphasized. Based on the reviewed studies, no comprehensive method was found to model and analyze the results of disputes in PPP contracts. Therefore, an attempt was made to provide a comprehensive model with game theory techniques (symmetric game) to investigate the results of information asymmetry and secrecy of the private party in providing correct income information and as a result of the occurrence of contractual conflicts in these models. The project of the hydro-power plant on the water transmission line from Shirindara dam to Bojnord City using the PPP method was selected as a case study. The results showed that the best game mode for the public sector is when there is no pre-evaluation study plan, there is secrecy and periodic inspection, in which the NPV will be equal to 30,165 million Rials. The best game mode for the private sector is when the study plan does not have pre-evaluation, there is secrecy and no periodic inspection (26,794 million Rials), which in this case The IRR of the plan will be 17%. In the most logical case, i.e. when the project has pre-evaluation studies, there is no concealment and no periodic inspection, the IRR of the project for the private sector was 15% and the NPV of both parts is the same.

Keywords

Public-Private Partnership; Information Asymmetry; Contractual Conflicts; Game Theory; Hydro-Electricity Energy

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