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How Did Balance Loss Occur? A Cross-stakeholder Analysis of Risk Misallocation in a Sponge City PPP Project

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Abstract

To address a growing number of risk misallocation issues amongst stakeholders, this study explored critical factors that influence risk misallocation from a cross-stakeholder perspective. Based on the framework of risk management, the Sponge City Program, in Guyuan City (China), was taken as a case study. The checklist of risk identification was employed to screen and rank the overall project risks, and risk assessment was conducted via a structured questionnaire survey. Logistic regression analysis was adopted to investigate the causes of the misallocation between risk control capability and willingness to take risks for both public and private stakeholders. The findings indicated that public stakeholders were more likely to be affected by information asymmetry, and contract negotiation ability; while risk misallocation for the private stakeholders tended to be affected by market policy, information asymmetry, contract negotiation ability, and financing ability. This insight can inform future studies on risk allocation in PPP water projects for public and private stakeholders to optimize the decision-making process.

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Data Availability

Some or all data, models, or code that support the findings of this study are available from the corresponding author upon reasonable request.

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Acknowledgements

We are particularly grateful to the anonymous reviewers and editors for their comments.

Funding

This research is supported by National Natural Science Foundation of China (Grant No. 71874127).

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Authors and Affiliations

  1. School of Civil Engineering, Wuhan University, 430072, Wuhan, China

    Yang Wang & Qingying Li

  2. School of Architecture & Built Environment, University of Adelaide, 5005, Adelaide, Australia

    Jian Zuo & Katharine Bartsch

Authors
  1. Yang Wang
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  2. Qingying Li
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  3. Jian Zuo
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  4. Katharine Bartsch
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Contributions

All authors contributed to the study’s conception and design. Material preparation, data collection, and analysis were performed by Yang Wang and Qingying Li. The first draft of the manuscript was written by Qingying Li and all authors commented on previous versions of the manuscript. All authors read and approved the final manuscript.

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Correspondence to Yang Wang.

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Wang, Y., Li, Q., Zuo, J. et al. How Did Balance Loss Occur? A Cross-stakeholder Analysis of Risk Misallocation in a Sponge City PPP Project. Water Resour Manage 36, 5225–5240 (2022). https://doi.org/10.1007/s11269-022-03301-2

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  • DOI: https://doi.org/10.1007/s11269-022-03301-2

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