Research On Participation Of Risk Of PPP Project In China' S Environmental Industry

PPP(acronym for Public—Private—Partnership),namely the cooperation between government and social capital,is a kind of project operation mode in the public infrastructure.In this model,participation of social capital is encouraged in public infrastructure construction which has been successfully applied abroad.New reform and deployment has been made during the 13 th Five-Year Plan period in the national economic development.Being the global "sunrise industry",environmental protection industries are gradually growing into China's strategic emerging pillar industries.In order to alleviate the government's burden in finance and to satisfy the public demand for environmental protection and to improve investment efficiency,and to ensure the enhanced contribution of environmental protection industry to national economy,the way of PPP application in environmental protection industry shall be well studied.In order to balance the interests of government and social capital,to ensure successful project performance,solution to the problem of risk sharing is definitely of great significance.The risk sharing issue of PPP project in the environmental protection industry is mainly studied in the paper by analyzing the necessity and feasibility of introducing PPP into environmental protection industry based on the research on the characteristics of environmental protection industry and relevant theory of PPP.The development of the PPP project in environmental protection industry both at home and abroad are introduced and analyzes are made on the development foreground of PPP project in China's environmental protection industry through data summary.The risks of PPP project are divided into three levels and risk sharing issues of the project in environmental protection industry are analyzed by introduction of successful and failed cases and the main risk factors of PPP project in the environmental protection industry are summarized.Relevant knowledge of the game theory supplemented by the information economics are adopted to analysis the way to identify the shared and non-shared risks of the PPP project in environmental protection industry.Finally the risk-sharing strategy of PPP project in China's environmental protection industry is forwarded based on the dynamic bargaining model constructed on the basis of complete information,and determination of the proportion of the shared risk between government and the social capital on the basis of the negotiation loss coefficient and the fixed negotiation cost.