Investment and Regulation: The Dutch Experience

Robert Haffner, Dorine Helmer and Harry van Til

The Electricity Journal, 2010, vol. 23, issue 5, 34-46

Abstract: Theoretical studies on the relationship between incentive regulation and investment in network industries generally point out that incentive regulation has a negative impact on investment. However, empirical evidence in this area is scarce. An analysis suggests that in the Dutch electricity and gas networks since 2001, incentive regulation has ensured a more rational and professional approach towards investments, with investment levels coming down somewhat at the start of the regulation but picking up later on.

Date: 2010
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