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on Project, Program and Portfolio Management |
| By: | Alessandro Lizzeri (Princeton University and NBER); Eran Shmaya (State University of New York at Stony Brook); Leeat Yariv (Princeton University, CEPR, and NBER) |
| Abstract: | Starting from Robbins (1952), the literature on experimentation via multi-armed bandits has wed exploration and exploitation. Nonetheless, in many applications, agents’ exploration and exploitation need not be intertwined: a policymaker may assess new policies different than the status quo; an investor may evaluate projects outside her portfolio. We characterize the optimal experimentation policy when exploration and exploitation are disentangled in the case of Poisson bandits, allowing for general news structures. The optimal policy features complete learning asymptotically, exhibits lots of persistence, but cannot be identified by an index à la Gittins. Disentanglement is particularly valuable for intermediate parameter values. |
| Keywords: | Exploration and Exploitation, Poisson Bandits |
| JEL: | C73 D81 D83 O35 |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:pri:cepsud:334 |
| By: | Petrolia, Daniel R.; Haner, Judy |
| Abstract: | Numerous coastal restoration projects have been funded and implemented in Alabama and Mississippi, but very little effort has gone into estimating the value of the services provided by these projects. Our work focused on 23 coastal habitat restoration projects in Alabama and Mississippi, most of which were constructed as a result of post-Deepwater Horizon funding. We organized projects into four categories: marsh creation, living shorelines, oyster cultch, and beach enhancement. We collected cost and benefit information for each project. Benefits were organized into nine categories: marsh habitat created, restored, or enhanced; marsh habitat protected; bottom reef habitat created; breakwater reef habitat created; oysters produced; benthic secondary production enhanced; beach/dune habitat created; recreational beach trips enhanced; and residential property values enhanced. Benefits were quantified based on data found in project documentation, including project summaries, monitoring reports, and other information obtained from project personnel. Benefits were monetized using benefit transfer, a method that takes existing benefit values from one or more existing studies and applies them to a new study. Fortunately, a handful of valuation projects have been completed in recent years specifically for our study area and habitat types, making benefit transfer relatively straightforward. Median, lower-bound, and upper-bound benefit values were estimated and benefit-cost (B-C) ratios were calculated. Of the fifteen completed projects, ten of them have positive estimated median net benefits, that is, median total benefits generated by the project exceed project cost. All but two projects have positive estimated net benefits under the upper-bound benefit values. Only one project has positive estimated net benefits even under the lower-bound benefit values. Ten of the fifteen projects have median benefit-cost ratios greater than 1.0. Five projects have median benefit-cost ratios greater than 2.0, meaning that for every dollar invested, they yielded over $2 in benefits. Two projects have median ratios greater than 3.0. Projects with construction or monitoring ongoing had incomplete benefit information, making a complete analysis infeasible. We also evaluated projects at the categorical level. This analysis was limited to projects with construction complete. Here, we placed multi-category projects into their own category. Of the five marsh creation projects analyzed, four have median B-C ratios greater than one. Two of the four living shoreline projects have B-C ratios greater than one, all three of the oyster cultch projects have B-C ratios greater than one, and one of the three multi-category projects have B-C ratios greater than one. At the categorical level, the oyster cultch category is estimated to have the highest average B-C ratio, followed by marsh creation, living shoreline, and multi-category projects. Overall, oyster cultch, marsh creation, and living shoreline categories are estimated to have average B-C ratios greater than 1.0, whereas multi-category projects are estimated to have an average B-C ratio less than 1.0. Based on our set of projects, this analysis indicates that oyster cultch projects tend to deliver the most “bang for the buck”, delivering an average of $3.80 -- and potentially substantially more -- in benefits for every dollar invested. Marsh creation projects deliver an average of $1.77 for every dollar invested. Living shoreline projects deliver an average of $1.10. Multi-category projects are estimated to cost more than the value of their benefits, on average. We wish to note however, that some muti-category projects have other components that were not fully monetized here. |
| Keywords: | Environmental Economics and Policy, Land Economics/Use |
| Date: | 2024–09–12 |
| URL: | https://d.repec.org/n?u=RePEc:ags:missrr:347607 |
| By: | Jan Rouwendal; Lars Brugman |
| Abstract: | This paper investigates the duration of housing construction projects in the Netherlands. We utilize comprehensive data from the Dutch Land Registry for the period 2013-2022 to investigate the importance of municipal land ownership, building plot price changes, construction costs, development inside areas that are already built-up and competition. The construction process covers the time between issuance of building permits and completion of the project, which can be split in a preparation and construction phase. We find that municipal involvement in projects speeds them up significantly, while increasing building plot prices and especially construction costs have a delaying effect. Construction inside already built-up areas fastens the preparation and slows down actual construction, with an significant net delaying effect on the total duration. Competition decreases the time needed for construction. Our results lend support to real option theory and indicate differences in the objections of private firms and local authorities. |
| Keywords: | Housing construction; Housing Supply; Land Use Planning; Stalled sites |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-128 |
| By: | Miguel Vazquez; Otaviano Canuto |
| Abstract: | Low-carbon hydrogen is a potential contributor to the goals defined in the Paris Agreement, i.e. limiting the increase in the global average temperature to 1.5°C above pre-industrial levels. The transformation of hydrogen production is a part of this effort, as current production methods in the hydrogen industry are carbon-intensive. To achieve net-zero scenarios, hydrogen production and consumption will need to change. Creating a pipeline of projects plays a central role in driving overall costs down. However, notwithstanding the impressive targets and project announcements that have been made, few low-carbon hydrogen projects have reached the final investment decision stage. It is necessary to design a set of policy tools to promote low-carbon hydrogen investment. To that end, we assess the matching process between the potential supply of capital and the demand for capital associated with projects. This paper looks at the problem from the point of view of financial closure of those projects. |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pb_09-24 |
| By: | Cimini, Francesco; Kalantzis, Fotios |
| Abstract: | This study examines the impact of green and digital investments on the investment inefficiency level of European firms. We define investment inefficiency as the deviation from the optimal investment level, which depends on both the net present value (NPV) of the projects and the marginal benefit and cost of investment. Leveraging matched data from the European Investment Survey (EIBIS) and ORBIS, which results in a sample of 4, 892 firmyear observations from 27 European countries surveyed over the period 2021-2023, we employed a panel data regression model to estimate the effect of green and digital investments on investment inefficiency. Our analysis shows that both types of investments reduce investment inefficiency, particularly for under-investing firms. We also find evidence of a statistically significant interaction effect between green and digital investments for over-investing firms, suggesting that digital technologies can enhance the efficiency gains from green investments. Our results have important implications for policy makers and business managers who aim to foster the twin digital and green transition in Europe and improve their investment efficiency and competitiveness. |
| Keywords: | European Investment Bank Investment Survey, Investment Inefficiency, Green investment, Digital investment, Twin transition |
| JEL: | M41 G31 Q53 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eibwps:304395 |
| By: | Philippe Larrue; Piret Tõnurist; David Jonason |
| Abstract: | Missions are nested entities involving multiple interventions at different levels and unclear and evolving boundaries, making traditional evaluation approaches ill-suited to capturing their additionality. This paper proposes mission-evaluation processes and tools that are consistent with their specific features. It notably proposes mission criteria related to their different expected systemic effects; a mission theory of action to support a developmental evaluation that tracks the evolution of the mission design and processes; and a monitoring tool to assess and compare mission-readiness levels across missions and at different stages of the mission life cycle. |
| Keywords: | directionality, Government funding, mission-evaluation process, Policy making, Research and Development (R&D) |
| JEL: | H43 O22 O32 D78 |
| Date: | 2024–10–28 |
| URL: | https://d.repec.org/n?u=RePEc:oec:stiaaa:2024/09-en |
| By: | Véronique Bessière (UM - Université de Montpellier, MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier); Christian Goglin |
| Abstract: | his work analyzes the importance of personal values in equity crowdfunding investment choice. Employing a theoretical framework borrowing theories from the fields of finance, marketing, and psychology, our model proposes several antecedents for investment choice and focuses on the congruence between the investor's personal values and the values promoted by the startup during its fundraising campaign. The results of our laboratory experiment, based on real-life campaign material, suggest that the investor's personal values and interest in the project are more important than the perceived signal quality of the project in explaining the decision to invest. Furthermore, two opposed values emerge from the study-"Universalism" and "Power"-in line with the typical two-way classification of SRI investors into value-based and value-seeking investor groups. |
| Keywords: | Equity crowdfunding investment choice personal values value congruence affective reactions ethics II, Equity crowdfunding, investment choice, personal values, value congruence, affective reactions, Ethics |
| Date: | 2024–12–23 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04692721 |
| By: | Donni Fajar Anugrah (Bank Indonesia); Arnita Rishanty (Bank Indonesia); Maxensius Tri Sambodo (National Research and Innovation Agency); Ade Dwi Aryani (Bank Indonesia) |
| Abstract: | This research provides a new perspective on developing Indonesia's critical mineral industry ecosystem from the standpoint of business practitioners and experts. Despite Indonesia's significant potential in critical mineral resources, the success of downstream development is determined by how well the upstream and downstream ecosystems can be strengthened. This includes improving raw material and material efficiency, building a strategic position in the global value chain, ensuring long-term supply sustainability, stimulating local demand, prioritizing the use of green energy, enhancing effective hazardous waste management, and addressing social issues in mining and processing areas. The analysis of Net Present Value (NPV) and Internal Rate of Return (IRR) in nickel downstream development indicates that, although substantial investment is required, a quicker return on investment can be achieved through technological changes, such as adopting pyrometallurgy. The NPV and IRR evaluation in copper downstream development demonstrates the economic feasibility of processing copper concentrate, showing significant profitability. The copper industry continues to grow with added value in the value chain, highlighting the economic benefits of copper downstream development. The prospects for downstream development of bauxite and aluminum are also promising. Based on NPV results, brownfield projects appear more economically viable than greenfield projects. Thus, the downstream development of critical minerals in Indonesia necessitates collaboration between the private sector (national and global) and the government to balance economic, social, and environmental objectives. |
| Keywords: | critical minerals, downstream, firm-level, value-added |
| JEL: | L72 O13 Q32 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:idn:wpaper:wp062023 |