Risk Allocation Preferences in Indonesian Electricity Public-Private Partnership Projects: A Conjoint Analysis

Hartono, Budi and Ghifari, M. Dzaki Agung and Dianita, Orchida (2021) Risk Allocation Preferences in Indonesian Electricity Public-Private Partnership Projects: A Conjoint Analysis. IEEE Engineering Management Review, 49 (3). 154 – 174. ISSN 03608581

Full text not available from this repository. (Request a copy)

Abstract

This article investigates the risk allocation preferences of Indonesian government agents within a public-private partnership scheme in electricity infrastructure projects. A full-factorial conjoint analysis is employed by introducing three groups of risk factors, namely, 'Policy,' 'Legal,' and 'Project residual' risks, to form eight distinctive scenarios. A total of 37 respondents from a government agency and other public agencies participated in the experiment, and two distinct clusters within a single party (public entity/government) emerged. The two clusters agree on the order of importance of risk preferences but disagree on nearly everything else. The clusters diverge in the magnitude of risk importance, risk preference scores, profiles, and the most preferred scenarios. This article also determines that the risk preference profiles of both clusters do not consistently follow the optimum risk-sharing principles. Moreover, this article elaborates on the scientific contributions and practical implications of the findings. Results provide essential insights into the risk allocation preferences of the public agents. The findings contribute to the development of mutual understanding between the public and private entities. © 1973-2011 IEEE.

Item Type: Article
Additional Information: Cited by: 5
Uncontrolled Keywords: Risk management; Risk perception; Statistical methods; Conjoint analysis; Electricity infrastructure; Government agencies; Mutual understanding; Public entities; Public private partnerships; Risk preference; Scientific contributions; Risk assessment
Subjects: T Technology > TJ Mechanical engineering and machinery
Divisions: Faculty of Engineering > Mechanical and Industrial Engineering Department
Depositing User: Sri JUNANDI
Date Deposited: 30 Oct 2024 01:33
Last Modified: 30 Oct 2024 01:33
URI: https://ir.lib.ugm.ac.id/id/eprint/8435

Actions (login required)

View Item
View Item