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A Fuzzy Comprehensive Evaluation Model for Sustainability Risk Evaluation of PPP Projects

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  • Libiao Bai

    (School of Economics and Management, Chang’an University, Middle Section of South Second Ring Road, Xi’an 710064, China)

  • Yi Li

    (School of Civil Engineering, Chang’an University, Middle Section of South Second Ring Road, Xi’an 710064, China)

  • Qiang Du

    (School of Economics and Management, Chang’an University, Middle Section of South Second Ring Road, Xi’an 710064, China)

  • Yadan Xu

    (School of Civil Engineering, Chang’an University, Middle Section of South Second Ring Road, Xi’an 710064, China)

Abstract

Evaluating the sustainability risk level of public–private partnership (PPP) projects can reduce project risk incidents and achieve the sustainable development of the organization. However, the existing studies about PPP projects risk management mainly focus on exploring the impact of financial and revenue risks but ignore the sustainability risks, causing the concept of “sustainability” to be missing while evaluating the risk level of PPP projects. To evaluate the sustainability risk level and achieve the most important objective of providing a reference for the public and private sectors when making decisions on PPP project management, this paper constructs a factor system of sustainability risk of PPP projects based on an extensive literature review and develops a mathematical model based on the methods of fuzzy comprehensive evaluation model (FCEM) and failure mode, effects and criticality analysis (FMECA) for evaluating the sustainability risk level of PPP projects. In addition, this paper conducts computational experiment based on a questionnaire survey to verify the effectiveness and feasibility of this proposed model. The results suggest that this model is reasonable for evaluating the sustainability risk level of PPP projects. To our knowledge, this paper is the first study to evaluate the sustainability risk of PPP projects, which would not only enrich the theories of project risk management, but also serve as a reference for the public and private sectors for the sustainable planning and development. Keywords: sustainability risk eva

Suggested Citation

  • Libiao Bai & Yi Li & Qiang Du & Yadan Xu, 2017. "A Fuzzy Comprehensive Evaluation Model for Sustainability Risk Evaluation of PPP Projects," Sustainability, MDPI, vol. 9(10), pages 1-22, October.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:10:p:1890-:d:115819
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    References listed on IDEAS

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    Cited by:

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    2. Wu, Yunna & Song, Zixin & Li, Lingwenying & Xu, Ruhang, 2018. "Risk management of public-private partnership charging infrastructure projects in China based on a three-dimension framework," Energy, Elsevier, vol. 165(PA), pages 1089-1101.
    3. Yuanli Li & Pengcheng Xiang & Kairui You & Jin Guo & Zhaowen Liu & Hong Ren, 2021. "Identifying the Key Risk Factors of Mega Infrastructure Projects from an Extended Sustainable Development Perspective," IJERPH, MDPI, vol. 18(14), pages 1-29, July.
    4. Xiaoyan Jiang & Kun Lu & Bo Xia & Yong Liu & Caiyun Cui, 2019. "Identifying Significant Risks and Analyzing Risk Relationship for Construction PPP Projects in China Using Integrated FISM-MICMAC Approach," Sustainability, MDPI, vol. 11(19), pages 1-31, September.
    5. Patrick Bergmann & Endre Kamarás & Werner Gleißner & Edeltraud Guenther, 2020. "Enhanced Cash Flow Valuation in Real Estate Management by Integrating Innovative Materials and Risk Assessment," Sustainability, MDPI, vol. 12(6), pages 1-26, March.
    6. Oppio, Alessandra & Dell’Ovo, Marta & Torrieri, Francesca & Miebs, Grzegorz & Kadziński, Miłosz, 2020. "Understanding the drivers of Urban Development Agreements with the rough set approach and robust decision rules," Land Use Policy, Elsevier, vol. 96(C).
    7. Violeta Dimić & Mimica Milošević & Dušan Milošević & Dragan Stević, 2018. "Adjustable Model of Renewable Energy Projects for Sustainable Development: A Case Study of the Nišava District in Serbia," Sustainability, MDPI, vol. 10(3), pages 1-19, March.
    8. Yan Wang & Yujie Wang & Xiuyu Wu & Jiwang Li, 2020. "Exploring the Risk Factors of Infrastructure PPP Projects for Sustainable Delivery: A Social Network Perspective," Sustainability, MDPI, vol. 12(10), pages 1-26, May.
    9. Xueguo Xu & Tingting Xu & Meizeng Gui, 2020. "Incentive Mechanism for Municipal Solid Waste Disposal PPP Projects in China," Sustainability, MDPI, vol. 12(18), pages 1-16, September.

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