Skip to main content

Public-Private Partnerships Can Power the Green Economy

New Miami Blog

New Miami Blog
September 29, 2016

Green-EconomyAt the first presidential debate, Hillary Clinton expressed a desire for the United States to become the “clean energy superpower of the 21st century.” Donald Trump responded that he, too, believes in all forms of energy, but that the U.S. government is limited in what it can finance due to its existing debt.

Although the federal government has for the most part never had to balance its checkbook, so to speak, state and local governments throughout the country are often required to have balanced budgets. One method municipalities have successfully employed (and with increasing frequency in recent years) in order to provide for needed infrastructure improvements without traditional public-debt financing is public-private partnerships. P3s, as they are called, leverage private financing and expertise to provide public facilities and services. We recently wrote about the possibility of implementing P3s for electric-vehicle infrastructure, and P3s could similarly be implemented to provide any component of the coming “green economy.” 

Already, private dollars are being utilized to provide low-carbon energy and infrastructure. Although the federal government will no doubt play a role in the future, state and local governments, in partnership with private firms, can play a greater role than in past decades. For example, public-transportation systems have relied almost exclusively on federal subsidies for their construction and operation since the 1970s. So when federal funds dried up, so did the development of new transit systems. Now a local government can use a public-private partnership, either in combination with reduced federal funding or in some cases in lieu of federal funding, to develop a new transit system that would otherwise go unfunded.

This is not merely hypothetical–nearly the entire New York City subway system was developed with a public-private partnership in the early 1900s. Similar models were used for many of the major infrastructure projects of the time. Just as they were used to meet the massive infrastructure needs of the early 20th century, P3s can be implemented to meet the even greater infrastructure needs of the future.

RELATED PEOPLE
Albert E. Dotson, Jr.

Albert E. Dotson, Jr.

Managing Partner
Eric Singer

Eric Singer

Partner
YOU MIGHT ALSO LIKE
Publication January 29, 2020
Suzanne Amaducci-Adams authored the Miami Herald Business Monday article, "Opinion: Miami-area tourists will be the big winners during Super Bowl week", for Miami Herald.
Lawcast Podcast March 2, 2021
In Episode 1 of our series, "Old Structures, New Purpose: Mastering the Practice of Adaptive Reuse," land development & government relations attorneys Javier F. Aviñó and Carly S. Grimm discuss the big changes happening in one of Miami-Dade County’s historic neighborhoods, Al...
Financial Services Watch Blog March 27, 2018
Last week H.R.1625 – Consolidated Appropriations Act, 2018 was enacted. The Act includes a continuation of funding, until September 30, 2018, for the EB-5 Regional Center Program. EB-5 financing has been a low cost financing alternative for real estate developers when compared to other capital...
VIEW MORE