Study On Economic Evaluation Of PPP Projects Based On Environmental Costs

In recent years, PPP projects, as an increasingly important project financing method,have attracted worldwide attention. They not only can greatly decrease the financialpressure of the government, but also greatly improve the efficiency of the project throughintroducing private capital. The evaluation of PPP projects becomes a research hotspotbecause of its differences from ordinary projects. With people’s gradual awareness ofenvironmental protection, environmental problems of the projects gradually attract publicattention. Some scholars have advised taking environmental costs of the project as part ofits costs in the project evaluation. The evaluation based on environmental costs can greatlyimprove the accuracy of project evaluation and then make the project achieve goodeconomic and social benefits.In the view of the public sector, this paper introduces environmental costs intoeconomic evaluation of PPP projects considering the characteristics of PPP projects. It putsforward an environmental cost model suitable for most projects, and builds a morecomprehensive economic evaluation system of PPP projects. Based on the environmentalcosts, each indicator has been amended. Thereafter, an empirical research is carried out on aPPP thermal power project. The results show that, without considering the environmentalcost of the case, not using desulfurization program achieves more benefits; In the contrast,when taking environmental costs into account, the project of using desulfurization facilitiesmakes greater benefits.