Straub, StephaneAndres, LuisGuasch, Jose Luis2012-06-082012-06-082007-10https://hdl.handle.net/10986/7564This paper evaluates the impact of economic regulation on infrastructure sector outcomes. It tests the impact of regulation from three different angles: aligning costs with tariffs and firm profitability; reducing opportunistic renegotiation; and measuring the effects on productivity, quality of service, coverage, and prices. The analysis uses an extensive data set of about 1,000 infrastructure concessions granted in Latin America from the late 1980s to the early 2000s. The analysis finds that as the theory indicates, regulation matters. The empirical work here reported shows that in three relevant economic aspects-aligning costs and tariffs; dissuading renegotiations; and improving productivity, quality of service, coverage, and tariffs-the structure, institutions, and procedures of regulation matter. Thus, significant efforts should continue to be made to improve the structure, quality, and institutionality of regulation. Regulation matters for protecting both consumers and investors, for aligning closely financial returns and the costs of capital, and for capturing higher levels of benefits from the provision of infrastructure services by the private sector.CC BY 3.0 IGOABUSE OF MONOPOLY POWERARBITRATIONARBITRATION BODYAUCTIONAUCTION PROCEDUREAUCTIONSBANK POLICYBARRIERBENEFICIARYBIDBUREAUCRATIC QUALITYCHECKSCLAIMANTCOMPANYCOMPETITIVE PRESSURECONCESSIONCONCESSION CONTRACTCONCESSION CONTRACTSCONCESSION PROJECTSCONSUMER PROTECTIONCONTRACT DESIGNCONTRACT RENEGOTIATIONCONTRACT RENEGOTIATIONSCONTRACT RENEWALCOST OF CAPITALCOST SAVINGSCOSTS OF CAPITALCURRENCYDEVALUATIONDEVELOPING COUNTRIESDEVELOPING ECONOMIESDEVELOPMENT BANKDIVESTITUREDOLLAR PRICESDUMMY VARIABLESECONOMIC REGULATIONELECTRICITY DISTRIBUTIONELECTRICITY INDUSTRYELECTRICITY OUTCOMESEMPIRICAL ANALYSISEMPIRICAL EVIDENCEEMPLOYMENTENFORCEMENT OF CONTRACTSENTERPRISE PERFORMANCEEXCHANGE RATEEXPANSIONFINANCIAL CAPACITYFINANCIAL RETURNSFINANCIAL STATEMENTSFIRM PERFORMANCEFOREIGN FIRMSFOREIGN INVESTORSFOREIGN OWNERSHIPFUTURE PRICESGENERATIONGOVERNANCE ARRANGEMENTSGOVERNMENT BUDGETGROSS DOMESTIC PRODUCTGROWTH RATEGROWTH RATESIMPACT OF REGULATIONINCOMEINDEPENDENT REGULATORSINDEPENDENT REGULATORYINFLATIONINFRASTRUCTURE CONCESSIONSINFRASTRUCTURE CONTRACTINFRASTRUCTURE CONTRACT RENEGOTIATIONINFRASTRUCTURE CONTRACTSINFRASTRUCTURE INDUSTRIESINFRASTRUCTURE PROJECTSINFRASTRUCTURE SECTORINFRASTRUCTURE SECTORSINTERNAL RATE OF RETURNINTERNATIONAL BANKINVESTMENT INCENTIVESINVESTMENT REQUIREMENTSJURISDICTIONLABOR REDUNDANCYLATIN AMERICANLEGAL FOUNDATIONLEGAL FRAMEWORKLEGAL INSTRUMENTLEVYLOCAL CURRENCYLOCAL INVESTORSMACROECONOMIC DATAMARKET CONDITIONSMARKET DATAMONOPOLIESMONOPOLYOPPORTUNISTIC BEHAVIOROUTPUTOUTPUTSPERFORMANCE OUTCOMESPRICE ADJUSTMENTSPRICE CAPPRICE CAP REGULATIONPRICE CAPSPRICE CRITERIAPRICE FOR WATERPRICE INCREASESPRICE REDUCTIONSPRICE REGULATIONPRIVATE FINANCINGPRIVATE FIRMPRIVATE INFRASTRUCTUREPRIVATE INFRASTRUCTURE PROJECTSPRIVATE INVESTMENTPRIVATE INVESTMENTSPRIVATE OPERATORSPRIVATE SECTORPRIVATE SECTOR FINANCINGPRIVATE SECTOR PARTICIPATIONPRIVATIZATIONPRIVATIZATION CONTRACTSPRIVATIZATION PROCESSPRIVATIZATIONSPROVISION OF INFRASTRUCTUREPROVISION OF INFRASTRUCTURE SERVICESPUBLIC ASSETSPUBLIC BUDGETPUBLIC INVESTMENTSPUBLIC SECTORQUALITY MEASURESQUALITY OF SERVICEQUALITY REGULATIONRATE OF RETURNRATE OF RETURN REGULATIONRATES OF RETURNREGULATION SCHEMESREGULATORREGULATORSREGULATORY AGENCYREGULATORY BODIESREGULATORY BODYREGULATORY COMMISSIONREGULATORY COMMISSIONSREGULATORY DECISIONSREGULATORY EFFECTIVENESSREGULATORY ENVIRONMENTREGULATORY FRAMEWORKREGULATORY FRAMEWORKSREGULATORY GOVERNANCEREGULATORY GOVERNANCE ARRANGEMENTSREGULATORY IMPLICATIONSREGULATORY INFRASTRUCTUREREGULATORY PROCESSREGULATORY REFORMSREGULATORY REGIMEREGULATORY REGIMESREGULATORY REVIEWREGULATORY RISKSREGULATORY RULESREGULATORY STRUCTUREREGULATORY VARIABLESRENEGOTIATIONRENEGOTIATION PROCESSRENEGOTIATIONSRETURN REGULATIONRISK PREMIUMRISK TRANSFERRULE OF LAWSANITATIONSAVINGSSERVICE DISRUPTIONSERVICE EXPANSIONSERVICE QUALITYSOCIAL COSTSSPONSORSSUSTAINABLE DEVELOPMENTTARIFF REGULATIONTELECOMMUNICATIONSTOLLTOLL ROADTOLL ROAD PROGRAMTRANSFER OF ASSETSTRANSITION PERIODSTRANSPARENCYTRANSPORTATIONTRINIDAD AND TOBAGOUNDERLYING ASSETSUTILITIESVOLATILITYWATER CONCESSIONSWATER DISTRIBUTIONWorld Bank10.1596/1813-9450-4378