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Keywords = local government (LG)

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22 pages, 430 KB  
Article
Exploring the Factors Influencing Project Management Methodology Implementation in Local Governments
by Raj Ranasinghe, Farshid Rahmani, Guinevere Gilbert and Ehsan Gharaie
Adm. Sci. 2025, 15(9), 332; https://doi.org/10.3390/admsci15090332 - 25 Aug 2025
Viewed by 389
Abstract
This study seeks to identify the factors influencing the implementation of Project Management Methodologies (PMM) in Local Government (LG) and identify the concepts, themes and characteristics that make up each of those factors. Semi-structured interviews were employed as the primary technique, engaging practitioners [...] Read more.
This study seeks to identify the factors influencing the implementation of Project Management Methodologies (PMM) in Local Government (LG) and identify the concepts, themes and characteristics that make up each of those factors. Semi-structured interviews were employed as the primary technique, engaging practitioners directly involved in local government capital works projects. This approach allowed for flexibility in exploring individual perspectives while maintaining consistency across key thematic areas. The interviews were designed to elicit rich, detailed narratives about organisational practices, procedural challenges, and behavioural attitudes toward PMM. Subsequently, a qualitative thematic analysis was adopted for the study. Through systematically coding, insights emerge regarding the key factors influencing PMM adoption, deployment, and optimisation. The findings suggest that strong leadership commitment, adaptive learning and structured oversight are critical for successful PMM implementation. “Governance”, “Experience and competency” and “Comparison and reflection” appear to be the most influential factors for PMM adoption, deployment and optimisation, respectively. The outcomes of this research will assist LGs in identifying and understanding the factors that influence the implementation of a PMM. Currently, no mandatory national policies standardise project management capabilities within the LG sector in Australia. Therefore, the outcomes of this study will provide a substantial body of knowledge and a platform to identity, analyse and evaluate the factors influencing the implementation of a PMM to the existing management practices within LGs. Full article
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20 pages, 1889 KB  
Article
Balancing the Interests of Various Community Groups in Local Government Policy on the Energy Performance of Buildings
by Girts Karnitis, Maris Pukis, Janis Bicevskis, Edgars Diebelis, Stanislavs Gendelis, Edvins Karnitis and Ugis Sarma
Energies 2025, 18(11), 2812; https://doi.org/10.3390/en18112812 - 28 May 2025
Viewed by 358
Abstract
EU legislation provides the implementation of most building energy performance measures at a subnational level. This obligation is causing a lot of completely new dilemmas that are challenging for local governments (LGs), requiring a radical re-evaluation of the prioritization of LGs’ traditional tasks [...] Read more.
EU legislation provides the implementation of most building energy performance measures at a subnational level. This obligation is causing a lot of completely new dilemmas that are challenging for local governments (LGs), requiring a radical re-evaluation of the prioritization of LGs’ traditional tasks and the ranking of new responsibilities. The attitude of local population and businesses towards the solutions to dilemmas, which are set by LGs decisions, vary widely. Separate groups actively lobby for their mutually contradictory interests, questioning decisions and fighting against them during the decision-drafting and -making process, significantly hindering the work of LGs and prolonging decision-making. The authors’ suggested solution to the problem is to make municipal decisions based on verifiable data and facts, thus preventing the manifestations of populism and demagogy, and reducing the possibilities for interest group advocacy. To obtain objective information for balanced decision-making about the benefits and costs of heating system retrofitting projects without carrying out the labor-intensive, time-consuming, and costly design of various options, an express methodology and an easy-to-use tool for project feasibility studies have been developed. The methodology utilizes a limited number of open indicators to streamline the evaluation process, and does not require specific knowledge in thermal physics, economics, or construction. Full article
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18 pages, 2807 KB  
Article
Sustainable Development Pathways for China’s Copper Industry: A Three-Way Evolutionary Game Approach
by Chen Wang, Jinfen Huo, Fenghao Zhang, Wanying Lin, Yinglun Zhao, Youfei Ma, Xuan Shi, Yunfei Ma, Han Yu and Yan Lin
Sustainability 2025, 17(7), 2838; https://doi.org/10.3390/su17072838 - 22 Mar 2025
Viewed by 632
Abstract
Sustainable development is a tripartite game among the central (CG) and local governments (LGs) and enterprises, with economic factors as key drivers. China consumed about 16.2 million metric tons during this period, accounting for approximately 61% of global consumption, thereby reinforcing its position [...] Read more.
Sustainable development is a tripartite game among the central (CG) and local governments (LGs) and enterprises, with economic factors as key drivers. China consumed about 16.2 million metric tons during this period, accounting for approximately 61% of global consumption, thereby reinforcing its position as the world’s leading copper consumer. Seeking a balance of acceptable interests among the three parties may be a feasible method to explore the sustainable development of China’s copper enterprises (CEs). Therefore, based on evolutionary game theory, we construct a three-party evolutionary game model. Using the financial data of Chinese CEs and actual survey data on the CG and LGs, we identified 31 environmental impact parameters from the CG, LGs, and CEs. Then, we used MATLAB R2023b to simulate an evolution model and determined the influence of various factors on the evolutionary stable state. The results show that LGs, as local managers, have implemented more direct and expedited regulations than the CG. Enterprises with less brand impact frequently face difficulties in complying with governmental regulatory demands. When interests are balanced, 30% of enterprises cannot meet standards within 40 months, which may cause 500 small and medium-sized enterprises to stop production, thus resulting in high unemployment costs for LGs. A scenario analysis evaluates the economic benefits of environmental measures based on evolutionary game results. The results show that the introduction of advanced hydrometallurgy technology has the highest economic benefits; after 5 years, the economic benefits of China’s entire copper industry will reach CNY 147.2 billion. Full article
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18 pages, 275 KB  
Article
Navigating Workforce Transformation: HRM Strategies of Rural and Regional Australian Councils in the 4IR Era
by Kehinde Martha Aluko and John Burgess
Adm. Sci. 2025, 15(2), 52; https://doi.org/10.3390/admsci15020052 - 10 Feb 2025
Viewed by 1372
Abstract
The context for the study reported here is the Australian local government sector, specifically rural and regional councils that operate in isolated and remote areas with limited staffing and resources. Within this sector, 4IR technologies are transforming service delivery, jobs, and skill requirements. [...] Read more.
The context for the study reported here is the Australian local government sector, specifically rural and regional councils that operate in isolated and remote areas with limited staffing and resources. Within this sector, 4IR technologies are transforming service delivery, jobs, and skill requirements. The purpose of this study is to examine how public sector organisations operating within a regulated and not-for-profit context and with constraints over HRM choices manage the challenges of the 4IR technologies on their workforce. Information from the study was sourced from semi-structured interviews with council managers and CEOs, independent experts familiar with the sector, and council documents. Triangulation of the information was applied to develop themes linked to workforce management, especially innovative HRM programs that were shaped by the constraints that councils faced in the management of their workforce. The findings indicate that regional and rural councils were able to manage the impact of 4IR technologies on their workforces through programs that drew on internal staff development and inter-council resource sharing. Full article
(This article belongs to the Special Issue Human Resource Management Innovation and Practice in a Digital Age)
23 pages, 2226 KB  
Article
Blockchain Traceability Adoption in Low-Carbon Supply Chains: An Evolutionary Game Analysis
by Chen Zhang, Yaoqun Xu and Yi Zheng
Sustainability 2024, 16(5), 1817; https://doi.org/10.3390/su16051817 - 22 Feb 2024
Cited by 11 | Viewed by 5675
Abstract
Blockchain technology has brought innovation to supply chain management, particularly in managing carbon emissions in the manufacturing sector. However, there is a research gap regarding the policy tools and the role of local governments in implementing blockchain technology to achieve carbon emissions traceability. [...] Read more.
Blockchain technology has brought innovation to supply chain management, particularly in managing carbon emissions in the manufacturing sector. However, there is a research gap regarding the policy tools and the role of local governments in implementing blockchain technology to achieve carbon emissions traceability. Additionally, the strategic relationships and policy implications resulting from the implementation of blockchain technology are not examined systematically. An effective method for examining the strategies used in interactions between supply chain stakeholders and governments is evolutionary game theory, or EGT. This paper employs mathematical modelling and MATLAB 2016 software simulation to examine the decision-making process of manufacturing companies when considering implementing blockchain technology traceability. Specifically, the subjects in the model include product manufacturers (PM), product suppliers (PS), and local governments (LGs). The aim is to examine the decision-making behavior of carbon traceability participants in blockchain technology. This paper analyses the most effective blockchain-based traceability strategies for low-carbon supply chain members under a variety of scenarios by modifying the parameters. The findings suggest the following: (1) Manufacturers and suppliers need to manage the cost of blockchain traceability, collaborate to create an environmentally friendly product certification system, and improve brand image. (2) Local governments should set up efficient reward and punishment systems to incentivize supply chain stakeholders to engage in the blockchain traceability system. The aforementioned discoveries furnish policymakers with guidance to encourage the implementation of blockchain-based carbon footprint traceability technology, thereby establishing a transparent carbon footprint traceability framework across the entire supply chain. Full article
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22 pages, 1335 KB  
Article
Role of Local Governments in Green Deal Multilevel Governance: The Energy Context
by Māris Pūķis, Jānis Bičevskis, Staņislavs Gendelis, Edvīns Karnītis, Ģirts Karnītis, Andris Eihmanis and Uģis Sarma
Energies 2023, 16(12), 4759; https://doi.org/10.3390/en16124759 - 16 Jun 2023
Cited by 6 | Viewed by 1927
Abstract
The sustainability of the climate is a global problem that requires the involvement of all levels of public governance and the private sector. Energy issues play a crucial role in the Green Deal (GD), and many of these issues are being addressed at [...] Read more.
The sustainability of the climate is a global problem that requires the involvement of all levels of public governance and the private sector. Energy issues play a crucial role in the Green Deal (GD), and many of these issues are being addressed at the local government (LG) level. The division of competences within the framework of the GD among the European Union (EU), national governments, LGs, and the private sector has not been sufficiently discussed. Existing studies often neglect the specific role of LGs. The aim of this study was to evaluate the extent to which the role of LGs aligns with the core principles of public governance, namely sustainability, solidarity, subsidiarity, and proportionality. The novelty of this study’s methodology lies in the comprehensive and integrated application of all four principles to assess the distribution of competences necessary to achieve global goals. The conclusion of the study demonstrates that, although the functionality and competences of LGs generally comply with these principles, the role of LGs as consultants to and co-legislators with national and EU authorities should be further discussed and expanded. Overall, this study highlights the importance of strengthening the role of LGs as valuable contributors to the governance process. Full article
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19 pages, 4336 KB  
Article
A Closer Look at Effective Intervention Methods to Reduce Household Solid Waste Generation in Japan
by Yoshinori Saitoh, Hiroshi Tago, Kimiyo Kumagai and Akihiro Iijima
Sustainability 2022, 14(22), 14835; https://doi.org/10.3390/su142214835 - 10 Nov 2022
Cited by 4 | Viewed by 4480
Abstract
In many countries municipal solid waste (MSW) is expected to soon increase beyond the pace of population growth due to urbanization. To minimize its negative impact, MSW management needs to be advanced. We studied administrative awareness-raising projects aimed at reducing household solid waste [...] Read more.
In many countries municipal solid waste (MSW) is expected to soon increase beyond the pace of population growth due to urbanization. To minimize its negative impact, MSW management needs to be advanced. We studied administrative awareness-raising projects aimed at reducing household solid waste (HSW), which accounts for a large portion of MSW. An online questionnaire survey was administered to local governments (LGs) in Japan to research the implementation status of the awareness-raising projects and estimate the waste reduction effect of intervention methods within those projects. Regarding social factors, multiple linear regression analysis showed significant negative relationships of HSW generation rate with the household population, total population, and waste charge system. Conversely, positive relationships were identified with age, the number of cars, income, and the frequency of collection. Intervention methods, such as briefing sessions, utilization of resident leaders, and mobile phone apps, were revealed to be effective; in contrast, information dissemination using the traditional intervention method was not. In particular, the utilization of resident leaders may be the most cost-effective, but some LGs seem to have abolished this form of intervention after its introduction 30 years ago due to lack of empirical evidence supporting its effectiveness. Full article
(This article belongs to the Special Issue Municipal Solid Waste Management: Towards a Sustainable Future)
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19 pages, 2657 KB  
Article
Localisation of Sustainable Development Goals (SDGs) in Bangladesh: An Inclusive Framework under Local Governments
by Md. Sujahangir Kabir Sarkar, Mahesti Okitasari, Md. Rajibul Ahsan and Abul Quasem Al-Amin
Sustainability 2022, 14(17), 10817; https://doi.org/10.3390/su141710817 - 30 Aug 2022
Cited by 17 | Viewed by 10916
Abstract
To accelerate the implementation of SDGs at the national level, policymakers and practitioners are focusing on localisation, where the local government (LG) can play a critical role. This paper examines the LG’s capacity and its existing link with the implementation of SDGs at [...] Read more.
To accelerate the implementation of SDGs at the national level, policymakers and practitioners are focusing on localisation, where the local government (LG) can play a critical role. This paper examines the LG’s capacity and its existing link with the implementation of SDGs at the local level in Bangladesh, and it offers an inclusive framework for the SDGs’ localisation. The data was gathered through an in-depth interview of 10 chairmen of the Union Council (lowest tier of LG) in Northern Bangladesh’s Nilphamari district. An SWOT analysis of the local government was conducted to determine the organisation’s effectiveness and capacity in light of its vulnerabilities, threats, strengths, and opportunities. The data indicate that while the majority of LG representatives have some knowledge, participation, and perceptions about the SDGs, they demonstrate a great desire to gain additional knowledge and participation. The study ascertains SDG 1 (No poverty), SDG 2 (Zero hunger), and SDG 6 (Clean water and sanitation) as the most locally important SDGs relevant to the LG’s actions, based on the opinions of the surveyed respondents. The LG’s strengths were identified in their familiarity with local problems and the environment, as well as the presence of potential local stakeholders, while their weaknesses included a lack of capacity, resources, funding, and a lack of decentralisation and empowerment of the LG. This study develops an inclusive framework for the localisation of the SDGs under the leadership of LGs based on the findings. To expedite the localisation of the SDGs in Bangladesh, the framework recommends forming an SIC (SDG implementation committee) by including all key local stakeholders, and asking the national government to increase local competence and resources through an appropriate decentralisation of the LG. Full article
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13 pages, 2442 KB  
Article
Construction of Genetic Linkage Map and Mapping QTL Specific to Leaf Anthocyanin Colouration in Mapping Population ‘Allahabad Safeda’ × ‘Purple Guava (Local)’ of Guava (Psidium guajava L.)
by Harjot Singh Sohi, Manav Indra Singh Gill, Parveen Chhuneja, Naresh Kumar Arora, Sukhjinder Singh Maan and Jagmohan Singh
Plants 2022, 11(15), 2014; https://doi.org/10.3390/plants11152014 - 2 Aug 2022
Cited by 7 | Viewed by 3301
Abstract
In the present investigation, F1 hybrids were developed in guava (Psidium guajava L.) by crossing high leaf-anthocyanin reflective-index (ARI1) content cultivars purple guava (local) ‘PG’, ‘CISH G-1’ and low leaf-ARI1 content cultivar Seedless ‘SL’ with Allahabad Safeda ‘AS’. [...] Read more.
In the present investigation, F1 hybrids were developed in guava (Psidium guajava L.) by crossing high leaf-anthocyanin reflective-index (ARI1) content cultivars purple guava (local) ‘PG’, ‘CISH G-1’ and low leaf-ARI1 content cultivar Seedless ‘SL’ with Allahabad Safeda ‘AS’. On the basis of phenotypic observations, high ARI1 content was observed in the cross ‘AS’ × ‘PG’ (0.214). Further, an SSR-markers-based genetic linkage map was developed from a mapping population of 238 F1 individuals derived from cross ‘AS’ × ‘PG’. The linkage map comprised 11 linkage groups (LGs), spanning 1601.7 cM with an average marker interval distance of 29.61 cM between adjacent markers. Five anthocyanin-content related gene-specific markers from apple were tested for parental polymorphism in the genotypes ‘AS’ and ‘PG’. Subsequently, a marker, viz., ‘MdMYB10F1′, revealed a strong association with leaf anthocyanin content in the guava mapping population. QTL (qARI-6-1) on LG6 explains much of the variation (PVE = 11.51% with LOD = 4.67) in levels of leaf anthocyanin colouration. This is the first report of amplification/utilization of apple anthocyanin-related genes in guava. The genotypic data generated from the genetic map can be further exploited in future for the enrichment of linkage maps and for identification of complex quantitative trait loci (QTLs) governing economically important fruit quality traits in guava. Full article
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21 pages, 3963 KB  
Article
Local Governance in Just Energy Transition: Towards a Community-Centric Framework
by Pradip Swarnakar and Mudit Kumar Singh
Sustainability 2022, 14(11), 6495; https://doi.org/10.3390/su14116495 - 26 May 2022
Cited by 20 | Viewed by 6032
Abstract
Knowledge of energy transition (ET) is evolving in developing countries. Yet, it is unclear how the transition should be managed in a way that ensures justice for local stakeholders. We synthesise the extant theoretical ideas and practices of the local governance (LG) related [...] Read more.
Knowledge of energy transition (ET) is evolving in developing countries. Yet, it is unclear how the transition should be managed in a way that ensures justice for local stakeholders. We synthesise the extant theoretical ideas and practices of the local governance (LG) related to ET, which are vital in ensuring justice in energy policy at the local level. The paper advances this development by a systematic integrative literature review (N = 569) from the Web of Science (WoS) and highly cited grey literature linked to participation, LG, and ET. The bibliometric analysis indicates that, while the literature on energy justice is growing, limited attention has been paid to LG in just energy transition (N = 36). The analysis further indicates that more than half of the scientific literature is produced by five countries from the global North alone. In-depth scrutiny of highly cited studies and grey literature in LG and ET underlines the lack of a generalised framework of local ET governance, especially in the global South. We address this gap and propose a framework that exhibits a community-centric LG, which is essential for just energy transition. Full article
(This article belongs to the Special Issue Perspectives on Community Engagement in Energy Transition)
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19 pages, 1641 KB  
Article
Bottom-Up Initiatives Undertaken by Local Governments to Support Entrepreneurship
by Niki Derlukiewicz, Anna Mempel-Śnieżyk, Tomasz Pilewicz and Małgorzata Godlewska
Energies 2021, 14(19), 6328; https://doi.org/10.3390/en14196328 - 3 Oct 2021
Cited by 7 | Viewed by 3569
Abstract
The present paper deals with issues related to activities undertaken by local government. The article focuses on the identification and assessment of the significance of local government’s different bottom-up initiatives that support development of local entrepreneurship. The article also indirectly discusses the importance [...] Read more.
The present paper deals with issues related to activities undertaken by local government. The article focuses on the identification and assessment of the significance of local government’s different bottom-up initiatives that support development of local entrepreneurship. The article also indirectly discusses the importance of activities referring to energy efficiency. Through the digitization process and by using digital tools, LGs realize projects, improve local actors’ awareness, and finally achieve new challenges such as a higher proportion of gross final energy consumption being from renewable sources. The aim of the paper is to present the relationship between the LGs’ entrepreneurial activities, which we call bottom-up initiatives, and the local entrepreneurship level, understood as the number of entrepreneurs active on the territory of a LG. This paper presents the results of research carried out on the bottom-up initiatives undertaken by Polish local governments to support entrepreneurship. The research was based on survey and statistical tools and stepwise regression analysis. In the paper, bottom-up initiatives undertaken by local governments (such as organizing events at the national or regional scale that enable networking among entrepreneurs or establishing departments for supporting local entrepreneurship that offer cooperation with local entrepreneurs) were found to influence the number of entrepreneurs active in local government territories. The paper concludes that local governments and their bottom-up activities are an important factor influencing local entrepreneurship development. The presented research results have implications for policy makers and may be useful for local governments in Poland and in other countries in the context of supporting entrepreneurship by undertaking bottom-up initiatives at the local level. Full article
(This article belongs to the Special Issue Sustainable Development, Energy Economics and Economic Analysis)
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14 pages, 520 KB  
Article
Are Central Government Rules Okay? Assessing the Hidden Costs of Centralised Discipline for Municipal Borrowing
by Davide Eltrudis and Patrizio Monfardini
Sustainability 2020, 12(23), 9932; https://doi.org/10.3390/su12239932 - 27 Nov 2020
Cited by 3 | Viewed by 1983
Abstract
In the EU, the specialty municipal banks have been the traditional funding source besides tax sharing and governmental transfers for Local Governments (LGs). With the decentralization process, LGs experienced different market-based options so that banks were no longer the only source of funding. [...] Read more.
In the EU, the specialty municipal banks have been the traditional funding source besides tax sharing and governmental transfers for Local Governments (LGs). With the decentralization process, LGs experienced different market-based options so that banks were no longer the only source of funding. However, with the onset of the Eurozone crisis, public sector debt is no more risk-free, and the cost of borrowing became unstable over time. To minimise such risks, Central Governments forced LGs to adopt general principles of control of local borrowing. Previous studies evidenced that centralised controls affect unitary countries more than federations. This paper investigates the Centralised Discipline and Control Model to understand whether it generates hidden costs. For such a purpose, the paper compares municipal bonds against borrowing from banks in Italy, a European unitary country. This paper highlights the existence of hidden costs for Italian LGs because the Central Government set up an expensive system for controlling the entire public sector debt. Policy makers should pay particular attention to which model of control to adopt by considering their country’s specific characteristics and the potential impacts of the different models on them, according to the present economic circumstances. Full article
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22 pages, 280 KB  
Article
Testing the Reliability of Financial Sustainability. The Case of Spanish Local Governments
by Vicente Pina, Patricia Bachiller and Lara Ripoll
Sustainability 2020, 12(17), 6880; https://doi.org/10.3390/su12176880 - 24 Aug 2020
Cited by 8 | Viewed by 3316
Abstract
Local Governments (LGs) have strengthened the financial control as a consequence of mandatory requirements to ensure financial sustainability in their management. The aim of this study is to determine whether financial indicators about financial conditions defined in Spanish regulation are backed by worldwide [...] Read more.
Local Governments (LGs) have strengthened the financial control as a consequence of mandatory requirements to ensure financial sustainability in their management. The aim of this study is to determine whether financial indicators about financial conditions defined in Spanish regulation are backed by worldwide generally accepted financial benchmarking indicators. For this purpose, we analyze the relationship between Spanish indicators of financial sustainability based on European Union (EU) regulations and Financial Trends Monitoring System Indicators (FTMS) of the International City/County Management Association (ICMA). For this purpose, two methodologies are applied: discriminant analysis and logistic regression, where the dependent variables are each of the Spanish financial indicators and the independent variables are ICMA indicators. The evidence supports that variables that are related to the control of expenditures, debt and the revenues show a greater explanatory power of financial sustainability, being the most important elements which offer relevant information about the financial sustainability measurement of LGs. Full article
18 pages, 292 KB  
Article
The Influence of Socio-Demographic Factors on Financial Sustainability of Public Services: A Comparative Analysis in Regional Governments and Local Governments
by María Deseada López Subires, Laura Alcaide Muñoz, Andrés Navarro Galera and Manuel Pedro Rodríguez Bolívar
Sustainability 2019, 11(21), 6008; https://doi.org/10.3390/su11216008 - 29 Oct 2019
Cited by 20 | Viewed by 5065
Abstract
In recent years, financial sustainability (FS) of public policies has become a key concept in all governmental levels due to the need for ensuring public services delivery for future generations. Prior research has been focused on the financial sustainability in local governments (LGs) [...] Read more.
In recent years, financial sustainability (FS) of public policies has become a key concept in all governmental levels due to the need for ensuring public services delivery for future generations. Prior research has been focused on the financial sustainability in local governments (LGs) although its findings suggested the need to analyze this magnitude in other levels of government because political decisions could be different in each type of public entity. So, FS has also become very relevant in the Regional Government (RGs) context because their public policies affect not only at the regional level but also the local one. Therefore, from a comparative approach, this paper seeks to identify socio-demographic factors which could influence on the financial sustainability, in the Spanish context for both LGs vs. RGS in order to establish public policies to make sustainable public goods and services. Findings demonstrate that differences in influential factors between these two levels of public administration exist: factors such as population size and foreign population could have an effect on the financial sustainability of both governmental levels while the unemployment rate, dependent population, and population density affect differently on LGs and RGs. Full article
(This article belongs to the Section Economic and Business Aspects of Sustainability)
25 pages, 467 KB  
Article
Municipal Bond Debt and Sustainability in a Non-Mature Financial Market: The Case of Italy
by Emanuele Padovani, Luca Rescigno and Jacopo Ceccatelli
Sustainability 2018, 10(9), 3249; https://doi.org/10.3390/su10093249 - 12 Sep 2018
Cited by 24 | Viewed by 5800
Abstract
Local government (LG) debt increased worldwide during the past decade. Yet, LGs need increased access to financing so they can maintain and expand their community’s infrastructure. Expanding an LG’s bond-related debt (while continuing to meet ongoing debt-service obligations) is essential to its sustainability. [...] Read more.
Local government (LG) debt increased worldwide during the past decade. Yet, LGs need increased access to financing so they can maintain and expand their community’s infrastructure. Expanding an LG’s bond-related debt (while continuing to meet ongoing debt-service obligations) is essential to its sustainability. An LG must both contain its credit risk and make its risk profile available to potential investors. Credit risk determinants in mature bond markets (e.g., the U.S.) have received considerable attention while those in non-mature markets have not. This paper contributes to the sustainable development literature by (a) identifying the risk-premium drivers in non-mature markets (using the bond market for Italian LGs as an example); and (b) providing LG policymakers with guidance on formulating policies to reduce their debt cost (either directly, by targeting its determinants, or indirectly, by improving the bond market’s functioning). LGs with comparatively high financial dependency on other governments, high criminal activity, and low operating revenues incurred higher bond-related costs than LGs without these characteristics. These LGs can improve their sustainability by (a) providing transparent and understandable financial information to potential investors; (b) reducing criminal activity; and, (c) increasing the frequency of external auditing. Full article
(This article belongs to the Section Economic and Business Aspects of Sustainability)
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