Measuring and Mitigating Regulatory Risk in Private Infrastructure Investment

The Electricity Journal, Vol.18, No. 6, pp. 36-45, 2005

13 Pages Posted: 5 Feb 2010

See all articles by Mark A Jamison

Mark A Jamison

University of Florida - Warrington College of Business Administration, Public Utility Research Center

Lynne Holt

University of Florida - Public Utility Research Center

Sanford V. Berg

University of Florida - Department of Economics

Date Written: June 1, 2005

Abstract

In this article we describe steps that governments and investors can take to mitigate regulatory risk. Such risk mitigation applies a set of institutional and financial instruments to make risks and rewards commensurate with each other, promoting efficient investment. Managers and investors are concerned about risk mitigation for obvious reasons, but policy-makers share these concerns since utility infrastructure is important for economic and social development and excessive risk limits investment. In developing countries in 1990-2001, nearly 2,500 infrastructure projects involved private participation, with commitments of more than $750 billion. According to World Bank estimates, developing countries will need an additional $550 to $600 billion in infrastructure investment by 2010; however, it is unlikely that this investment need will be met because new investment (especially in energy) has declined steadily since 1997.

Suggested Citation

Jamison, Mark A. and Holt, Lynne W. and Berg, Sanford V., Measuring and Mitigating Regulatory Risk in Private Infrastructure Investment (June 1, 2005). The Electricity Journal, Vol.18, No. 6, pp. 36-45, 2005, Available at SSRN: https://ssrn.com/abstract=1548109

Mark A. Jamison (Contact Author)

University of Florida - Warrington College of Business Administration, Public Utility Research Center ( email )

PO Box 117142
Gainesville, FL 32611
United States
352-392-6148 (Phone)
352-392-7796 (Fax)

HOME PAGE: http://warrington.ufl.edu/purc/facultyinfo.asp?WEBID=1217

Lynne W. Holt

University of Florida - Public Utility Research Center ( email )

Gainesville, FL 32611
United States
352-392-6148 (Phone)
352-392-7796 (Fax)

HOME PAGE: http://www.cba.ufl.edu/faculty/facultyinfo.asp?WEBID=2433

Sanford V. Berg

University of Florida - Department of Economics ( email )

Gainesville, FL 32611-7140
United States
352-392-0132 (Phone)
352-392-7796 (Fax)

HOME PAGE: http://www.cba.ufl.edu/purc/facultyinfo.asp?WEBID=1260

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
129
Abstract Views
896
rank
240,880
PlumX Metrics