Infrastructures : time to invest / WRR, Scientific Council for Government Policy.

Format:

Book

Contributor:

Wetenschappelijke Raad voor het Regeringsbeleid (Netherlands)

Series:

Rapporten aan de regering

Language:

Dutch

English

Subjects (All):

Infrastructure (Economics).

Infrastructure (Economics)--Finance.

Infrastructure (Economics)--Netherlands.

Infrastructure (Economics)--Netherlands--Finance.

Finance.

Netherlands.

Physical Description:

223 pages : illustrations ; 25 cm.

Place of Publication:

Amsterdam : Amsterdam University Press, 2008.

Language Note:

In English; summaries in Dutch and English.

Summary:

WRR Rapporten Aan De Regering 81

Infrastructures

All sectors of the Dutch infrastructures have undergone a degree of commercialisation, liberalisation or privatisation over the last ten to twenty years. Where in the past the infrastructure landscape was dominated by public monopolies, the ownership and management of infrastructures is today shared by several public and private sector players. The original goals of this 'regime change' have in many cases been achieved: greater efficiency, a greater focus on the customer and more choice for consumers.

The question is whether this emphasis on current consumer interests allows enough scope to achieve long-term objectives which affect the whole of our society: innovation, long-term availability and sustainability of infrastructures. This is of crucial importance for economic and social development, which is coming under increasing pressure due to the combined impact of the exhaustion of natural resources and climate change.

The transition to a sustainable future demands substantial investment in infrastructures, which cannot be taken for granted in the present situation. The WRR has investigated how these investments could be safeguarded in the long term, whilst retaining the efficiency of the infrastructures.

Contents:

1 Introduction 49

1.1 Why this report? 49

1.1.1 The vital (but often neglected) role of infrastructures 49

1.1.2 The effects of integration and interdependence 51

1.2 Regime change in infrastructures 51

1.2.1 Five modes of regime change 52

1.2.2 Two stages of regime change: 'Type I' and 'Type II' market failures 53

1.2.3 The changing interaction between the public and the private 54

1.2.4 Changing actors, various levels 55

1.3 The fundamental dilemma: The mission paradox? 55

1.3.1 Definition of the problem 56

1.4 Investment in infrastructures - a necessary focus 57

1.4.1 Critical investment decisions 58

1.4.2 A sector-wide focus on investment 59

1.4.3 Public values 61

1.5 Challenges on investment decisions in infrastructures 62

1.5.1 Technological change 62

1.5.2 New sources of investment gaining ground and diminishing public ownership/control 63

1.5.3 Climate change 64

1.5.4 The European dimension 64

1.6 Approach 65

1.7 Conclusion 67

2 Regime change and investment in infrastructures 71

2.1 Introduction 71

2.2 The role of infrastructures 71

2.3 The specifics of investment in infrastructures 73

2.4 Regime change: An incomplete process 74

2.5 Defining liberalisation, privatisation, unbundling, corporatisisation and internationalisation 77

2.5.1 Liberalisation 77

2.5.2 Privatisation 78

2.5.3 Unbundling 78

2.5.4 Corporatisation 79

2.5.5 Internationalisation 79

2.6 Continuous regime change and hybrid arrangements 79

2.6.1 Intended and unintended consequences 81

2.6.2 Direct and indirect consequences 82

2.7 Function and governance 83

2.8 Results of regime change: Numerous and heterogeneous actors and multi-levels 84

2.9 Conclusion 85

3 A new constellation of actors 89

3.1 Introduction 89

3.1.1 Regime change: Rival actors, multiple principals and splintered arenas 89

3.2 Splintered arenas 91

3.3 New actors 93

3.4 Multiple principals and multiple agents 95

3.5 Hybrids 96

3.5.1 Hybrid organisations 96

3.5.2 Public-private partnerships 97

3.5.3 Key observations with regard to hybrids 98

3.5.4 Changing role of government in multiple actor/multiple principal settings 100

3.6 Conclusion 102

4 Infrastructures in a multi-level arena 105

4.1 Introduction 105

4.2 Functional internationalisation of infrastructures 106

4.3 The European Union facilitating investment decisions in infrastructures 108

4.3.1 Internal market-related policies 108

4.3.2 Trans-European Networks (TENs) 109

4.3.3 Critical infrastructures policies 111

4.4 The EU constraining investment decisions in infrastructures 111

4.5 New types of governance at the EU level: Governance through networks and agencies 114

4.5.1 Introduction 114

4.5.2 Different types and developments 115

4.5.3 Accountability issues 118

4.6 Conclusion 119

5 Regime change and public values in infrastructures 123

5.1 Introduction 123

5.2 What are public values in infrastructures? 124

5.2.1 Public values or public interests? 124

5.2.2 The debate in the early stages of regime change 124

5.2.3 Public values and investment in infrastructures 126

5.2.4 The dynamics of public values 126

5.2.5 Concluding remarks: Approach towards public values 128

5.3 Institutional arrangements to realise public values 128

5.3.1 Independent economic regulation and public values 129

5.3.2 Contracts and concessions and public values 131

5.3.3 Self-regulation and public values 132

5.3.4 Concluding remarks: The need for review of the initial responses 133

5.4 Options for the review of the institutional arrangements 134

5.4.1 Review of the independent regulator 134

5.4.2 Bringing the state back in 136

5.4.3 The two options combined 137

5.5 Conclusion 138

6 Regime change and the investment in energy infrastructure 141

6.1 Introduction 141

6.2 Energy infrastructure and public values 142

6.3 Regime change in the Dutch energy sector 143

6.3.1 The past 143

6.3.2 Regime change: New primary actors, new interest groups 145

6.3.3 Regime change: Policy, public values and supervision 146

6.3.4 Regime change: New markets and new transactions 148

6.4 The regulatory regime in the energy sector: Static efficiencies and unforeseen consequences 151

6.4.1 Regulation of tariffs and networks investment 151

6.5 Future energy sector challenges 153

6.5.1 Changing supply patterns 153

6.5.2 The challenge of climate change 154

6.6 Examples 155

6.6.1 The gas sector 155

6.6.2 Conflicting policy and regulatory objectives 155

6.6.3 Underground storage and transport: Where natural gas and carbon meet 158

6.6.4 The development of CO2 sequestration facilities 161

6.7 Experiences from abroad: Australia 165

6.8 Conclusion 168

7 Conclusions and recommendations 175

7.1 Introduction - The challenges ahead 175

7.2 Regime change 176

7.2.1 The changing role of government under regime change 177

7.2.2 Regime change: From a 'Type I' to a 'Type II' strategy 178

7.3 Public values in infrastructures 179

7.4 A new actor and a multiple level constellation: Consequences of the diagnosis 180

7.4.1 Heterogeneous actors and multiple levels 180

7.4.2 Distrust and uncertainty, risks and rewards 181

7.4.3 Investment and its functions 182

7.4.4 Different effects in different infrastructures 183

7.5 Towards a strategic policy framework: Redefine, realign and recalibrate 185

7.6 Pillar I - Defining and redefining roles and responsibilities 185

7.6.1 The role of government 186

7.6.2 The role of ministers in evolving sectoral road maps 187

7.6.3 The role of independent regulators 187

7.6.4 New roles for regulators? 188

7.6.5 New roles in system coordination 189

7.6.6 Avoiding blurring of roles and interests 190

7.7 Pillar II-Realigning goals and resources: Exploring ways to join-up and connect actors and levels 191

7.7.1 Joined-up action at the political level 191

7.7.2 Joined-up action at the regulatory level 192

7.7.3 Conferral of concurrent powers 193

7.7.4 Multi-level joining up 193

7.7.5 Learning from Brussels? 193

7.8 Pillar III - Recalibrating checks and balances 194

7.8.1 A national super fund for infrastructures? 195

7.8.2 Strategic public shareholdings 196

7.8.3 Procedural checks and balances 197

7.8.4 Multilevel checks and balances 198

7.9 Time to invest 198.

Notes:

Includes bibliographical references (pages 209-218).

ISBN:

9789053566053

9053566058

9789048501311

9048501318

OCLC:

320505412