Financing Low-Carbon Transport Transition in the Philippines: Mapping Financing Sources, Gaps and Directionality of Innovation

Successfully achieving a low-carbon transition in the transport sector requires an understanding of the lending logics of the financial institutions in order to identify the financing directionality and gaps. However, in the transportation literature, there is a lack of attention on the relationship between financing sources and the direction of innovation. The present study seeks to address this by mapping the flow of finance from financial institutions to transport projects. Our dataset consists of 9 transport projects included in the Philippines’ Nationally Determined Contribution (NDC). We consider different types of projects (rail development, bus rapid transit implementation, jeepney modernization) and various financial actors (multi-lateral banks, private and government banks). Through an analysis of loan portfolio composition and interview data, we uncover the underlying logics of each financial institution in lending to transport projects. Our findings suggest that the lending logics of many financial institutions is primarily driven by portfolio and borrower credit-worthiness considerations, and less by motivations concerning sustainability transition. As a result, with respect to the average, some transport projects are over-financed (e.g. rail development), while others – which have a high potential to accelerate decarbonization – are under-financed (e.g. jeepney modernization). All these have profound implications for the directionality of low-carbon transition. Deeper engagement of transition research with finance is a nascent field, and the current research contributes to the literature not only by presenting a comprehensive mapping of several financing sources and projects, but also of proposing three credit enhancement mechanisms to mobilize capital for under-financed projects

Generalization of Digital Innovation for Financial Inclusion by Means of Market Creation through Regulation and Governance

Achieving financial inclusion in shorter timeframes is a grand societal challenge that can be addressed by digital technology. Nonetheless, how an innovative digital technology gets generalized is understudied in the literature. We present the generalization of a cloud-based core banking system to drive financial inclusion in the Philippines. We draw our material from the case of cloud-based core banking system adoption in the Philippines. Our results show that market formation is essential to the generalization, and this can be accomplished through a mix of laissez-faire and dirigisme mechanisms. Pure laissez-faire mechanisms alone, with minimal intervention from the central bank, may drive the generalization of digital innovations. Nonetheless, for the generalization of cloud digital technology to happen at an accelerated pace, the central bank must intervene more proactively, especially in establishing an industry-wide digital financial ecosystem. Furthermore, for the generalization of cloud digital technology to truly contribute to the societal mission of financial inclusion, the central bank ought to take the lead as a meta-governor directing the various elements of the digital finance ecosystem. Our study provides a nuanced understanding of the interplay between laissez-faire and dirigisme in the genesis of markets for digital innovations in pursuit of financial inclusion

Service contracting as a policy response for public transport recovery during the Covid-19 Pandemic: A preliminary evaluation

We examine and assess the service contracting (SC) program implemented for the first time in Metro Manila, Philippines as a response to the impact of the pandemic on road-based public transport sector. We develop an evaluation framework, consisting of three indicators: social amelioration, increase in transport supply and performance improvement. These indicators are the purported objectives of SC. Using a mix of qualitative and quantitative methods, our evaluation suggests that although SC has brought positive impact in terms of the first two indicators, there is no robust evidence so far that may suggest that SC has improved the performance of public transport service delivery. We also find that while the primary objective of providing social amelioration to affected operators is appropriate during the time of the pandemic, this has also brought challenges in financially sustaining the program and in effecting improvements to public transport services. Our work aims to contribute as an empirical case study on the upsides and downsides of service contracting implemented as a business model for public transport provision during the pandemic

持続可能な通学のための交通行動変容支援システム

京都大学0048新制・課程博士博士(工学)甲第21086号工博第4450号新制||工||1692(附属図書館)京都大学大学院工学研究科都市社会工学専攻(主査)教授 藤井 聡, 准教授 SCHMOECKER Jan-Dirk, 教授 宇野 伸宏学位規則第4条第1項該当Doctor of Philosophy (Engineering)Kyoto UniversityDFA

Pandemics as ‘windows of opportunity’: Transitioning towards more sustainable and resilient transport systems

We consider how the COVID pandemic crisis opened a window of opportunity for creating resilient and sustainable transport systems in Metro Manila, the megacity capital of the Philippines. Because of the pandemic, public health protection has become the top priority, which requires adherence to health protocols, such as physical distancing and sanitization, severely affecting the financial viability of operators of public transport. Selection pressures were unleashed, causing radical disruptions on incumbent public transport systems. Cycling, which was largely non-existent in Metro Manila, suddenly emerged as a top mode of choice for many despite the injury-related risks involved. A key finding is that the destabilization, while disruptive of the status quo, also creates opportunities for the government to pursue policies that may improve financial viability for operators and safety for cyclists, which include: revamp of business model from franchise to service contracting, social support and financing, implementation of bus rapid transit and infrastructure for active mobility

Does the Greening of Banks Impact the Logics of Sustainable Financing? The Case of Bank Lending to Merchant Renewable Energy Projects in the Philippines

As the Philippines pursues its mission of decarbonization in the energy sector by 2030, a target which aims to achieve a 35% share of renewable energy (RE) in the country\u27s power generation mix, the broad participation of merchant plant developers and banks is crucial. Developers of merchant plants can generate supply of renewable energy, while banks can provide the financing. Nonetheless, banks traditionally do not lend to fully merchant plants, particularly by small proponents who have no implicit guarantor. In recent years, as more banks embed sustainability principles in their corporate philosophy, the question arises on whether this trend has also impacted the bank lending logics, especially with respect to how banks evaluate the risk-return profiles of RE projects, including pure merchant plants by small developers. Using qualitative research methods, we collected data through interviews and desk research from six banks in the Philippines (private and government-controlled, as well as universal and rural). To unpack the lending logics of banks, we presented ten credit enhancement options for the banks to appraise. We found that government-controlled banks, partly due to their mandate in supporting national development, have more appetite towards small merchant plants, unlike private banks, despite the latter\u27s aggressive pursuit of sustainability targets. In the end, a fundamental gap between private banks and merchant plants remains. Since addressing it is crucial for the Philippines to achieve its mission of energy decarbonization, we end with some recommendations on how this gap may be bridged

Analysis of the public transport modernization via system reconfiguration: The ongoing case in the Philippines

We present the ongoing Public Utility Vehicle Modernization Program (PUVMP) as a case study in socio-technical transition studies in the transport sector. The ongoing reform project, initiated and implemented by the national government, aims for a wholesale change of the public land transportation industry of the Philippines. Using a theoretical framework that combines institutional entrepreneurship, transition experiments, multi-level perspective and politics of transitions, we unpack the different elements comprising the PUVMP and their interactions, including power dynamics, to better understand and manage the complexity and dependencies of transition. A key point of the article is that gradual and incremental change is the most realistic representation of the socio-technical transition by PUVMP. This departs from the conceptualization that dominates transition studies of regime shift or niche disruptions due to singular technologies at the niche level

Impact of Public Transport Disruption on Access to Healthcare Facility and Well-being During the Covid-19 Pandemic: A Qualitative Case Study in Metro Manila, Philippines

The Covid-19 pandemic has forced governments to halt public transport operations. A consequence of such disruption is the reduction in access to critical facilities by individuals who rely on public transport for their daily mobility. We investigate the impact disparities caused by the restriction of public transportation on the access of healthcare workers and patients to healthcare facilities during the Covid-19 pandemic. Metro Manila is an appropriate case study site because the duration of suspension of public transport in the mega-city is one of the longest in the world. The prolonged duration of the lockdown could have devastating impacts on the well-being of individuals who are reliant on public transport to access essential services. Guided by the Yin-Eisenhardt approach to qualitative research, we examined the data from 55 individuals using within-case and cross-case analyses iteratively for the purpose of building a model on the impact of change in access due to public transport disruption on well-being. We mobilized constructs and concepts known in the literature, such as well-being, access, disruption, resistance, resilience, and vulnerability, in developing our two-step conceptual model. Given the profound impact of the prolonged and system-wide suspension of public transport on the well-being of individuals, it is necessary to provide sufficient public transport and active transport infrastructure and services that can cover their mobility needs. The two-step conceptual model from this study can provide guidance on specific policy interventions

Stage model of the process of solar photovoltaic adoption by residential households in the Philippines

Fourteen years have passed since the Renewable Energy Act of 2008 was enacted in the Philippines. Under the law, net-metering was implemented as a non-fiscal incentive mechanism to encourage residential households to switch to solar energy. Yet the majority of the country's residential households are still highly dependent on fossil fuels. This study investigates the process of solar photovoltaic adoption among 234 residential households in the Philippines using the stage model, which assumes adoption as a process of transition along three stages: no interest, under consideration, and installation. The study examines which barriers or drivers significantly contribute to the transition from ‘having no interest’ to ‘under consideration’, and ultimately, ‘installation’. Results show that for households to strongly consider the adoption of solar panels, household decision-makers must know the benefit of having a reliable source of energy. Despite this, financial barriers and knowledge and informational barriers may deter households to install solar panels. Hence, a focus on return on investment and selling of excess energy may increase the likelihood of full adoption of solar panels among households. The results of the study may provide guidance for policy-making and the development of stage-tailored marketing strategies