PPP Risk-Sharing Mechanism for Sustainable Characteristic Town Development

摘要

The development of a sustainable characteristic town is a new type of urbanization, one integrated with industry, city, and country, which emphasizes the integration of industry, culture, habitability, environment, among other factors. The development of a sustainable characteristic town requires large investment and a long duration for completion. Therefore, social capital investment is needed to ensure the best outcome for these special towns. Using a public–private partnership (PPP) system for such development, resources could be integrated, getting rid of the bottleneck during operations, and addressing a capital shortage. This article explores the current research internationally and discusses the related concepts and foundational theories for the development of sustainable characterized towns. Based on the identification of the shared risks in the development of these towns, this article analyzes the hierarchy of risk factors and risk sharing in such projects. An optimal risk-sharing scheme of these projects has been analyzed through use of a game model. The result indicates that the generally accepted risk factors are basically in line with the game model, leading to the recommendation proposed in this article with the aim to provide reference for the development of a sustainable characteristic town through the PPP model.