The Institutional and Behavioral Model of Eco-Oriented Public-Private Partnership within Ukraine’s Sustainable Development System

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Authors: Svitlana Ilchenko
Cited by: 0

Abstract

The aim of the article is to examine the theoretical and methodological foundations for the formation of environmentally oriented public-private partnerships (eco-PPPs) as an institutional mechanism for Ukraine’s sustainable development, taking into account behavioral models of interaction between the State and the private sector. The article substantiates the relevance of moving from a purely financial perspective on PPPs to an integrated approach that combines economic feasibility, environmental effectiveness, and trust in the context of post-war recovery and European integration. The author analyzes the current state of eco-PPP implementation in Ukraine based on twelve projects in the sectors of transport, energy efficiency (ESCO/EPC), thermal energy, waste management, and municipal infrastructure. For each project, key parameters are systematized: the level of State support, environmental requirements, institutional trust, risk of non-compliance, and expected investor return. The synthesis of empirical data showed that initiatives combining significant government support with a high level of trust under moderate risk have the highest likelihood of stable implementation. Environmental requirements do not reduce investment attractiveness when compensatory mechanisms are in place, such as EPC standards, backing from international financial institutions (for example, EBRD Green Cities programs), transparent selection procedures, and professional municipal management. The methodological foundation consists of logical-structural and comparative analysis combined with empirical generalization, with an emphasis on the behavioral-institutional interpretation of decisions by private investors and government bodies. The scientific novelty lies in the development of a comprehensive behavioral-economic approach to evaluating eco-public-private partnerships, integrating trust, risk, government support, and environmental requirements into a single analytical framework without excessive quantitative complexity. The practical significance lies in the possibility of using the proposed approach as a basis for the national “Green PPP Framework” system, which entails standardizing environmental criteria, establishing transparency standards, and introducing basic tools for guaranteeing and monitoring socio-environmental effects.

Fields of Study & Subjects

Public-Private Partnership Projects Business and Economic Development Sustainable Finance and Green Bonds

Publication details

Journal / source
THE PROBLEMS OF ECONOMY
Volume
4
Issue
66
Pages
75–84
Publication date
1 February 2026
Language
EN