Cheng, M; Liu, L; Cheng, X and Tao, L (2024) Risk analysis of public-private partnership waste-to-energy incineration projects in China: A hybrid fuzzy DEMATEL-ISM approach. Engineering, Construction and Architectural Management, 31(11), pp. 4255-4280. ISSN 0969-9988
Abstract
Purpose: Many waste-to-energy (WTE) plants are constructed and operated using the public-private partnership (PPP) mode in China. However, risk events of PPP WTE incineration projects sometimes occur. This study aims to clarify the relationship of risks in China's PPP WTE incineration projects and identify the key risks accordingly and risk transmission paths. Design/methodology/approach: A risk list of PPP WTE incineration projects was obtained based on literature analysis. Moreover, a hybrid approach combining fuzzy sets, decision-making trial and evaluation laboratory (DEMATEL) and interpretive structural modeling (ISM) was developed to analyze the causality of risks, explore critical risks and reveal the risk transmission paths. The quantitative analysis process was implemented in MATLAB. Findings: The results show that government decision-making risk, government credit risk, government supervision behavior risk, legal and policy risk, revenue and cost risk and management capacity risk are the critical risks of PPP WTE incineration projects in China. These critical risks are at different levels in the risk hierarchy and often trigger other risks. Originality/value: Currently, there is a lack of exploration on the interaction between the risks of PPP WTE incineration projects. This study fills this gap by examining the key risks and risk transfer pathways of PPP WTE incineration projects from the perspective of risk interactions. The findings can help the public and private sectors to systematically understand the risks in PPP WTE incineration projects, thus enabling them to identify the risks that need to be focused on when making decisions and to optimize risk prevention strategies. The proposed hybrid approach can offer methodological ideas for risk analysis of other types of PPP projects.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | fuzzy DEMATEL; interpretive structural modeling; public-private partnership; risk analysis; waste-to-energy |
| Index terms: | interaction, methodology, revenue, prevention, decision-making, fuzzy set, supervision, exploration, laboratory, waste-to-energy, strategy, quantitative analysis, partnership, risk analysis, China, private sector, interpretive structural modelling |
| Subjects: | research methods, financial risk, environmental hazards, data analysis and analytics, management, control systems, research management, economic analysis, decision-making and optimization, environmental resource management, partnership management, industry analysis, waste management, Geography, decision analysis, behavioral psychology |
| Topics: | Geographical Context, Business Strategy, Risk Management, Stakeholder Management, Sustainability, Project Management, Research Practice, Cost Management |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here