Research On Government Compensation Mechanism Of Pension PPP Project Based On System Dynamics

At present,the problem of China's aging population is imminent,and efficient and professional pension institutions are the only way to solve the problem of aging.In order to speed up the construction of pension institutions,rationally allocate resources,and improve operational efficiency to ease the contradiction between supply and demand,the government combines the PPP model with the social pension system and has established pension PPP projects throughout the country.The government issued a number of policy documents to encourage the use of government and social capital cooperation(PPP)models to advance the structural reform of the supply side of the pension service industry and accelerate the cultivation and development of the pension service industry.However,the pension institution is a meager industry with low service pricing and operating revenue cannot fully cover project construction and operating costs.In addition,unforeseen accidents may occur during the concession period,making it difficult for the private sector to achieve profitability.Therefore,if we want to maintain the normal operation of the project,the government should give the private sector corresponding compensation in certain forms.A scientific and reasonable government compensation mechanism can not only attract and incentivize social capital to participate in endowment PPP projects and gain average social benefits,but also promote pension institutions to improve operational performance and resource utilization efficiency,and to meet the urgent needs of the aged groups for the elderly.Firstly,this paper takes the pension service project under the PPP model as the research object,discusses the problem of compensation fund source and compensation method in the government compensation mechanism,and lists the problems and deficiencies in the current mechanism,mainly the problems of non-standard measurement methods and low compensation efficiency.Secondly,from the perspective of system dynamics,the causal feedback relationship between government compensation,project income and influencing factors of pension PPP project is analyzed.Based on the causal relationship graph,the net present value(NPV)is used as the project decision indicator.From the perspective of project benefits,an SD flow map of government compensation is established to determine the equations between variables.Finally,based on the actual case,using Vensim PLE software,the simulation is carried out under the condition of government compensation and non-compensation,and the compensation plan is formulated from the aspects of compensation of the pension institution and price compensation.The results show that the government needs to compensate the project in order for social capital to obtain a return on basic investment,and the design of the government compensation mechanism should comprehensively coordinate the compensation of the pension institution and price compensation to meet the three party interests of the government,social capital and the public.The measures and suggestions on franchising can provide a reference for the design of compensation mechanism for PPP projects for the pension institution,and can also be applied to other infrastructure projects requiring government compensation.