Public-private Partnerships in Energy Projects in Low- and Middle-income Countries and Decarbonization of the Global Economy

Decarbonization of the world economy by 2050 is impossible without a significant increase in the energy efficiency of the economies of developing countries. Nowadays, developing countries are transforming and expanding their energy systems, solving the problems of energy poverty of the population, developing energy-intensive industries, which generally leads to an increase in energy consumption on a global scale. With tight budget constraints, developing countries are predominantly using the public-private partnership (PPP) model to finance their energy infrastructure development needs. Therefore, the choice of technologies for implementation in the framework of PPP projects can have a significant impact on changes in the energy efficiency of the country's economy in general. The purpose of this study is to assess the effectiveness of PPP projects in the energy sector in middle- and low-income countries in terms of improving energy efficiency and decreasing carbon intensity. Data Envelopment Analysis methodology is used to evaluate the effectiveness of PPP projects. As inputs, we consider the number of PPP projects in the energy sector implemented on the territory of the country for the period 1990-2016 and their total funding. Changes in a country's energy efficiency and carbon intensity from 1990 to the present are considered as outputs. The CCR model with output orientation is considered. The efficiency scores and projections for each output are calculated. © 2023 Published by the ISTES Organization