Research On Incentitive Mechanism Of Waste Dispoal PPP Project

With the acceleration of urbanization, the state began to vigorously promote the construction of infrastructure and other public works, therefore, the waste disposal PPP project is quickly picking up in this context. However, due to government incentives and regulations are not perfect, there are a lot of waste treatment plants simplifying the preprocessing of waste incineration, which will cause an increase in pollutant emissions and harm the public interest.This article is based on this background, combined with the specific waste PPP projects, through making use of the PPP mode and incentive theory, beginning from the opportunistic behavior which will happened in the PPP project, and making reducing the opportunistic behavior of the private sector as a research goal, then builds an incentive model between the public sector and the private sector, therefore, the model was further analyzed, in the end,we find some key points that could help the public sector develop policiesThe research concludes as follows. In terms of the optimal technological innovation efforts, if the public sector offers a large enough subsidy, what’s more, its unit is greater than the economic and social marginal revenue, then the private’s optimal efforts will increase when its perceived risk increases, besides, different from previous studies is that the optimal level of private sector efforts and their ability level is not monotonous, but with the different subsidies and changes. In terms of the optimal income distribution, the public should make a comprehensive consideration, and combine three aspects, including the perceived risk for different types of income, the level of ability of the private sector, and the subsidies. In terms of optimal subsidies, when the economic and social benefits caused by the technological innovation are more significant, the public sector should increase the subsidies, which can make the private sector in the pursuit of profit maximization take into account the process of technological innovation. When the economic and social benefits caused by the technological innovation are not significant and lower than the subsidies, the public sector should reduce the subsidies, which can make the private sector be able to devote more effort to increase economic efficiency and social welfare, and not focus too much on the subsides.