Song, J; Song, D and Zhang, D (2015) Modeling the concession period and subsidy for BOT waste-to-energy incineration projects. Journal of Construction Engineering and Management, 141(10): 04015033, ISSN 0733-9364
Abstract
Build-operate-transfer (BOT) arrangements are increasing in popularity with the development of the waste-to-energy (WTE) incineration industry in China and many other countries. For BOT WTE incineration projects, decision-making regarding the concession period and the subsidy is critical for balancing the potential interests of the government, the private sector, and the public. However, the public's concerns with and influence over the decision-making process of BOT projects have been omitted in recent research. The aim of this paper is to propose a reasonable, systematic, and multiobjective model for determining the concession period and subsidy for BOT WTE incineration projects based on system dynamics and prospect theory. By applying the system dynamics approach, a revenue model is constructed and simulated considering the causal relationship and mathematical formulations among the influencing factors, and some acceptable alternatives for the concession period and subsidy are obtained. To gain the support of the public, the public perception is measured and quantified using prospect theory and fuzzy set theory, and a fuzzy multiobjective model is proposed to identify the most feasible and satisfactory alternative for the concession period and subsidy. Finally, the proposed model is verified by a real BOT WTE incineration project in China. This research is helpful for creating a 'multiwins' mechanism for the government, the private sector, and the public in a BOT WTE incineration project.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | build-operate-transfer; fuzzy sets; prospect theory; quantitative methods; system dynamics; waste-to-energy incineration |
| Index terms: | fuzzy set, fuzzy set theory, private sector, decision-making process, concession period, subsidy, influencing factor, modelling, build-operate-transfer, revenue, waste-to-energy, prospect theory, China, quantitative method, system dynamics, decision-making |
| Subjects: | contract structure, Geography, decision analysis, industry analysis, decision-making and optimization, risk assessment, waste management, computing systems, data analysis and analytics, contractual arrangements, economic analysis, analytical methods |
| Topics: | Business Strategy, Geographical Context, Research Practice, Engineering Principles, Risk Management, Procurement, Sustainability, Digital Applications |
| Descriptive scope: | 3 PCT |
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