Deciphering the difference puzzle of risk-sharing: A comparative analysis of infrastructure PPP development within China and US

Appropriate risk sharing is crucial for the successful implementation of Public-Private Partnership projects. However, under different social systems, the international community lacks a clear risk-sharing framework in Public-Private Partnership research. This study employs a multi-case study method...

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Main Authors: Yongchao Cao, Huimin Li, Limin Su, Wenjuan Zhang, Chengyi Zhang
Format: Article
Language:English
Published: Elsevier 2024-12-01
Series:Project Leadership and Society
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Online Access:http://www.sciencedirect.com/science/article/pii/S2666721524000206
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author Yongchao Cao
Huimin Li
Limin Su
Wenjuan Zhang
Chengyi Zhang
author_facet Yongchao Cao
Huimin Li
Limin Su
Wenjuan Zhang
Chengyi Zhang
author_sort Yongchao Cao
collection DOAJ
description Appropriate risk sharing is crucial for the successful implementation of Public-Private Partnership projects. However, under different social systems, the international community lacks a clear risk-sharing framework in Public-Private Partnership research. This study employs a multi-case study method to examine the practice of risk sharing in infrastructure Public-Private Partnership projects within China and the US, aiming to provide a clear risk management framework for Public-Private Partnership projects. The research findings reveal common elements and similar characteristics in risk-sharing practices. Contrary to the goal of transferring all risks to the private sector, both countries actually allocate risks to the party with stronger risk control capabilities or share risks between the government and the private sector. The US benefits from more mature policies and has a comprehensive Public-Private Partnership model implementation framework; in contrast, as an emerging market for Public-Private Partnership models, China's current laws and regulations need further improvement. The results of this study not only contribute to optimizing risk-sharing arrangements and improving investment efficiency of the project, but also promote the development of cross-border infrastructure projects, and provide valuable experience and insights for the sustainable development of global infrastructure.
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spelling doaj-art-0e5ca275ea1146c0930e4cb746fc62192025-08-20T02:37:42ZengElsevierProject Leadership and Society2666-72152024-12-01510013510.1016/j.plas.2024.100135Deciphering the difference puzzle of risk-sharing: A comparative analysis of infrastructure PPP development within China and USYongchao Cao0Huimin Li1Limin Su2Wenjuan Zhang3Chengyi Zhang4School of Management and Economics, North China University of Water Resources and Electric Power, 450046, Zhengzhou, ChinaDepartment of Construction Engineering and Management, North China University of Water Resources and Electric Power, 450046 Zhengzhou, China; Henan Key Laboratory of Water Environment Simulation and Treatment, 450046, Zhengzhou, China; Corresponding author. Department of Construction Engineering and Management, North China University of Water Resources and Electric Power, 450046, Zhengzhou, China.School of Mathematics and Statistics, North China University of Water Resources and Electric Power, 450046 Zhengzhou, ChinaSchool of Management and Economics, North China University of Water Resources and Electric Power, 450046, Zhengzhou, ChinaDepartment of Civil and Architectural Engineering, University of Wyoming, 82071, Laramie, USAAppropriate risk sharing is crucial for the successful implementation of Public-Private Partnership projects. However, under different social systems, the international community lacks a clear risk-sharing framework in Public-Private Partnership research. This study employs a multi-case study method to examine the practice of risk sharing in infrastructure Public-Private Partnership projects within China and the US, aiming to provide a clear risk management framework for Public-Private Partnership projects. The research findings reveal common elements and similar characteristics in risk-sharing practices. Contrary to the goal of transferring all risks to the private sector, both countries actually allocate risks to the party with stronger risk control capabilities or share risks between the government and the private sector. The US benefits from more mature policies and has a comprehensive Public-Private Partnership model implementation framework; in contrast, as an emerging market for Public-Private Partnership models, China's current laws and regulations need further improvement. The results of this study not only contribute to optimizing risk-sharing arrangements and improving investment efficiency of the project, but also promote the development of cross-border infrastructure projects, and provide valuable experience and insights for the sustainable development of global infrastructure.http://www.sciencedirect.com/science/article/pii/S2666721524000206Risk sharingMulti-case studyInfrastructure public-private partnership projectsChina and US
spellingShingle Yongchao Cao
Huimin Li
Limin Su
Wenjuan Zhang
Chengyi Zhang
Deciphering the difference puzzle of risk-sharing: A comparative analysis of infrastructure PPP development within China and US
Project Leadership and Society
Risk sharing
Multi-case study
Infrastructure public-private partnership projects
China and US
title Deciphering the difference puzzle of risk-sharing: A comparative analysis of infrastructure PPP development within China and US
title_full Deciphering the difference puzzle of risk-sharing: A comparative analysis of infrastructure PPP development within China and US
title_fullStr Deciphering the difference puzzle of risk-sharing: A comparative analysis of infrastructure PPP development within China and US
title_full_unstemmed Deciphering the difference puzzle of risk-sharing: A comparative analysis of infrastructure PPP development within China and US
title_short Deciphering the difference puzzle of risk-sharing: A comparative analysis of infrastructure PPP development within China and US
title_sort deciphering the difference puzzle of risk sharing a comparative analysis of infrastructure ppp development within china and us
topic Risk sharing
Multi-case study
Infrastructure public-private partnership projects
China and US
url http://www.sciencedirect.com/science/article/pii/S2666721524000206
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