Smart City Projects Financing
Authors: Hedegaard Michael , Kuzior Aleksandra , Tverezovska Oleksandra , Hrytsenko Larysa , Kolomiiets Svitlana 
Published: April 2024

The implementation of advanced digital technologies and innovations in smart cities for the provision of more efficient, sustainable, and inclusive city services, the development of infrastructure, and the improvement of citizens’ quality of life require appropriate financing technologies. In addition to purely public (for example, green bonds, social impact bonds, state subsidies, etc.) and purely private (venture investments, leasing, etc.) financial instruments, various options for public-private partnerships and financing with and against the participation of the community (participatory ), which increase the efficiency of budget financing due to the agreed distribution of risks and responsibilities between stakeholders. The bibliometric analysis of publications indexed by Scopus using the keywords “smart city” and “public-private partnership” using the VOSviwer tool allowed establishing the periods of growth (2013-2019 and 2022-2023) and decline (2019-2022) of the popularity of this topic among scientists, countries-leaders of research activity (USA, India, China, Italy, Spain, Great Britain, Canada and Germany), dominant directions of cross-sectoral research. The analysis of the Smart City Index Report (IMD Smart City Index Report) showed that in 2023, the top 5 leaders were Switzerland (Zurich), Norway (Oslo), Australia (Canberra), Denmark (Copenhagen), and Great Britain (London). With the help of the Google Trends toolkit, an analysis of the dynamics of Internet requests over the past 10 years from citizens of these countries, as well as Ukraine and the world, was carried out using identical keywords. The analysis proved that both in these countries and in the world as a whole, public interest in the development of the smart grid was recorded (in Ukraine, the highest peak (100 GT Scale) was in 2019; in Great Britain and Switzerland – in 2018, in Denmark – in 2017 and 2022, in Australia and Norway – in 2016) against the background of an almost absolute (except for Great Britain and Australia) lack of public interest in issues of public-private partnership. A regression model was developed to study the impact of participatory financing on the readiness level of Ukraine’s regions (as of 2020) to implement smart local development technologies. An integral indicator was used as the resulting variable, within which data on the assessment of the availability of electronic public services and the level of automation and digitization of public services (the number of state and local self-government bodies that provided the possibility of using electronic democracy tools), the level of use electronic platforms for communication with state bodies (the number of registered “E-appeals”, published “E-petitions” and reports on “E-consultations”), the availability of the Internet (the number of Internet subscribers and the share of households that have access to Internet services home). In the modeling process, adjustments were made for the gross regional product and the population of the respective region, the weighting factors were determined by the method of principal components, the estimation of the model parameters was carried out by the method of least squares, the calculations were made using the MS Excel spreadsheet and the Statistica application program package.