Content №4 от 2017
Transaction Costs in the Subsoil Use: Eco-Economic Analysis of the Mechanisms of Public-Private Partnerships
The article examines the problems of developing a regional mineral resource base in regions, which have an underdeveloped production infrastructure. We propose an original mathematical model, where public investments are involved both in creating infrastructure and carrying out environmental measures, to assess the impact of transaction costs (TС) on the performance of public-private partnerships (PPP). Such a situation often occurs in practice and usually stems from a need to build modern housing and environmental infrastructure in remote areas of Siberia and the Far East. The article reveals factors that affect the efficiency of PPP when developing fields on the untapped areas. A significant factor of influence, comparable to the discount rate, is the state’s level of TCs, with their growth having the most negative effect against a high investment discount rate. This suggests that, in adverse investment conditions, it is important to prevent the state’s TCs from growing. The most natural way is through improving the efficiency of state institutions of eco-economic regulation, reducing redundant functions and excessive costs. The analysis shows that the economic performance of PPPs depends on individual factors and their combinations alike, and the dependence is rather complex. An a priori assurance that a PPP where the state has a substantial share always brings positive results is unfounded if we aim to respect the interests of not only private businesses but also society as a whole.
