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Simulation-based dynamic adjustments of prices and subsidies for transportation PPP projects based on stakeholders’ satisfaction

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Public–private partnership (PPP) has been well acknowledged by many as an innovative approach to the procurement of public projects. In their long-term concession periods, various uncertain factors lead to the difficulties in implementing the concession contracts. Historical projects have proven that unexpected changes of projects will inevitably result in the adjustment of prices of the private sector and subsidies from the public sector. Therefore, a dynamic price and subsidy adjustment model is desired, to balance the satisfaction of all involved stakeholders (i.e., public sector, private sector, and general public). In the present study, a system dynamics model, which balances the tripartite satisfaction in PPPs, was established. A PPP bridge case study was conducted to demonstrate that the proposed model is applicable and can function for future PPP projects. Model validation, sensitivity analysis, model application, and result analysis were included as well. Further recommendations and conclusions were made to help practitioners to improve the model implementation in transportation PPP projects to increase the likelihood of achieving tripartite satisfaction. This research also sheds light on the price and subsidy adjustments for other types of PPP projects.

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Acknowledgements

The authors’ special thanks go to all reviewers of the paper and to the National Natural Science Foundation of China (NSFC-71671042 and 71472037); the Program for Outstanding Young Teachers of Southeast University (2242015R30009); and the Fundamental Research Funds for the Central Universities for financially supporting this research. Meanwhile, the survey data were generated by authors’ prior work by Yuan et al. (2009) (https://doi.org/10.1080/01446190902748705) and Xiong et al. (2015) (https://doi.org/10.3846/13923730.2014.895409). The simulation data were obtained from the example Dong-Fang toll bridge (Shen et al. 2002) (https://doi.org/10.1061/(asce)0733-9364(2002)128:4(326)).

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Authors and Affiliations

  1. Department of Construction and Real Estate, School of Civil Engineering, Southeast University, Nanjing, 210096, People’s Republic of China

    Jingfeng Yuan & Jiyue Guo

  2. Sid & Reva Dewberry Department of Civil, Environmental and Infrastructure Engineering, George Mason University, Fairfax, VA, 22030, USA

    Wenying Ji

  3. Department of Civil and Environmental Engineering, University of Maryland, College Park, MD, 20742, USA

    Mirosław J. Skibniewski

  4. Institute for Theoretical and Applied Informatics, Polish Academy of Sciences, 44100, Gliwice, Poland

    Mirosław J. Skibniewski

  5. T.-S. Yang Honorary Distinguished Professor, Chaoyang University of Technology, Taichung, 41349, Taiwan

    Mirosław J. Skibniewski

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  1. Jingfeng Yuan
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  2. Wenying Ji
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Contributions

Jingfeng Yuan and Wenjing Ji conceived, designed and performed the model, Jingfeng Yuan, Wenjing Ji, Jiyue Guo analyzed the data, Jingfeng Yuan, Wenjing Ji, Jiyue Guo, and Mirosław J. Skibniewski wrote the paper. All authors read and approved the final manuscript.

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Correspondence to Jingfeng Yuan.

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Table 3 All symbols applied in quantitative model
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Yuan, J., Ji, W., Guo, J. et al. Simulation-based dynamic adjustments of prices and subsidies for transportation PPP projects based on stakeholders’ satisfaction. Transportation 46, 2309–2345 (2019). https://doi.org/10.1007/s11116-018-9940-1

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