The Transport Area of the Florence School of Regulation (FSR Transport) at the European University Institute is dedicated to policy dialogue, policy-relevant research, training, and networking in the area of transport regulation in Europe. It is concerned with the regulation of all the transport modes and transport markets, including the relationships between them. Phone: +39 055 4685 795 Address: Florence School of Regulation, Transport Area European University Institute via Boccaccio 121 50133 Firenze – Italy
The de- and re-regulation of the different network industries is an on-going process at both the ... more The de- and re-regulation of the different network industries is an on-going process at both the national and global levels. As this process unfolds, ever new phenomena emerge, necessitating a constant reassessment of the content and objectives of regulation. The rapidly evolving Information and Communication Technologies (ICTs) have significantly challenged the traditionally stable landscape of infrastructure services provision. The new data layer over the traditional infrastructure and service layers is transforming network industries: online platforms create new indirect network effects, they allow new service providers to enter the market (prosumers, sharing economy providers, etc.), and they challenge the central role of traditional infrastructure managers/service providers as entities ensuring the coordination of the sectors. Offering traditional and new services in an innovative way is a growing trend among public authorities, traditional providers as well as new private operators, prosumers and platforms. However, together with great opportunities, disruptive innovations also give rise to new regulatory challenges, especially when it comes to infrastructure financing and the coordination of operations. This 7th Florence Conference on the Regulation of Infrastructures aims at taking stock of the major challenges infrastructure regulation is currently facing as a result of technology, indirect network effects, newly emerging network structures (decentralized networks, distributed networks, sharing economy), and new actors (prosumers, OTTs, platforms, etc). Papers will be presented in different parallel sessions dedicated to the following infrastructure sectors: Communications and media; Energy and climate; Transport and mobility; Water distribution; Wastewater and waste management. We encourage contributions that link different infrastructure sectors, especially in light of the ICTs. Contributions utilizing multidisciplinary, as well as interdisciplinary approaches to regulation, are welcome. Papers linking academia and practice, as well as policy research papers are particularly encouraged. The Conference is intended for academics such as PhD students, PostDocs and Assistant/associate/full Professors as well as academically minded practitioners.
The de-and re-regulation of the different network industries is an ongoing process at national an... more The de-and re-regulation of the different network industries is an ongoing process at national and global level. As this process unfolds, ever new phenomena emerge, which call for a constant reassessment of the content and objectives of regulation. The question becomes even more challenging when looking at recent infrastructure development at the local level. Phenomena including (and not limited to) the demographic changes, the rapidly evolving consequences of climate change and the evolution of the Information and Communication Technologies (ICTs) have significantly challenged the traditionally stable landscape of urban infrastructure services provision. Providing traditional and new services in an innovative way is a growing trend among public authorities, traditional providers as well as new private prosumers and platforms for sharing economy. Both small and large agglomerations are seeking to become the so-called " smart cities ". However, together with great opportunities, disruptive innovations also give rise to new regulatory challenges especially on infrastructure financing and management of the future " smart cities ". This 6th Florence Conference on the Regulation of Infrastructures aims at taking stock of the major challenges infrastructure regulation is currently facing at the local level. Papers will be presented in different parallel sessions dedicated to the following infrastructure sectors: Communications and media; Energy and Climate; Transport; Water distribution; Wastewater and waste management. We encourage contributions that link technology and institutions in more than one infrastructure sector. Contributions utilizing multidisciplinary as well as interdisciplinary approaches to regulation are welcome. Papers linking academia and practice, as well as policy research papers are particularly encouraged. The conference is intended for academics such as PhD students, PostDocs and Assistant/associate/full Professors as well as academically minded practitioners.
The network industries in Latin America (from Mexico to Chile) are undergoing substantial changes... more The network industries in Latin America (from Mexico to Chile) are undergoing substantial changes, marked in particular by their liberalization but also their privatization. Similarly, the regulation of the network industries' sectors is gradually being institutionalized following European, American, but also endogenous approaches. Overall, however, the de-and re-regulation of the network industries in Latin America follows no clear model and results are mixed, at best. This special issue of Utilities Policy aims at shedding light at the de-and the re-regulation practices in the different network industries and in the different Latin American countries, notably Mexico, Brazil, Colombia, Peru, Argentina, Chile and others. This special issue is especially dedicated to critically analyzing these practices, along with the policies that have inspired them.
The goal of this special issue of the Network Industries Quarterly is to measure the effects, cau... more The goal of this special issue of the Network Industries Quarterly is to measure the effects, causes and consequences of inadequate levels of infrastructure investment in Latin America Countries. It is also to help in understanding the restrictions that money and capital markets in LAC´s are facing as they strive to increase their participation in the process of infrastructure financing. Also, the objective of this special issue is to help to identify the conditions for the capital and money markets to increase their participation in the infrastructure financing process.
This 5th Conference on the Regulation of Infrastructures aims at taking stock of the major challe... more This 5th Conference on the Regulation of Infrastructures aims at taking stock of the major challenges infrastructure regulation is currently facing in the age of their rapid digitalization. The de- and re-regulation of the different network industries is an ongoing process at national and global levels. As this process unfolds, ever new phenomena emerge. Yet, the question about the right mixture between market, economic, technical and social regulation remains wide open in all the network industries. The question becomes even more challenging when looking at recent infrastructure development as triggered by their pervasive digitalization. Not only are the different infrastructures transformed by their digitalization – e.g., digital transport, smart energy, etc. – calling for new approaches to regulating them, but moreover does digitalization become a phenomenon in its own right. The European Commission actually sees digitalization as a means to accelerate integration, to tear down regulatory walls and to move from 28 national markets to a single one. Consequently, digitalization and especially its implications in terms of privacy and security also require regulatory attention.
The de- and re-regulation of the different network industries is an ongoing process at the global... more The de- and re-regulation of the different network industries is an ongoing process at the global level. As this process unfolds, ever new phenomena emerge, which generally call for more, rather than less regulatory intervention. Yet, the question about the right mixture between market, economic, technical and social regulation remains widely open in all the network industries. The question becomes even more challenging when looking at infrastructure development in the different regions of the world. While most of the European countries have a long lasting story of national regulation and have then started to put considerable effort in harmonising their regulation at the EU level, outside of the EU, regulation of different network industries has followed different paths. This Florence School special issue gathers contributions to the 4th Florence Conference on the Regulation of Infrastructures and aims at taking stock of the major challenges infrastructure regulation is currently facing all over the world, with a special focus also on emerging countries. Due to impossibility for many to participate in the Conference, papers that have not been presented at the Conference will also be considered for publication. Areas of interest include, but are not limited to: 1) Issues relevant in the main infrastructure sectors, notably telecommunications, postal services, electricity, gas, railways, air transport, urban public transport, as well as water distribution and sanitation; 2) Issues that are tackled from various disciplinary approaches, notably engineering, economics, law and political science; interdisciplinary approaches are particularly encouraged; 3) Case studies that are linking an academic approach to practical relevance; policy relevant research papers are particularly welcomed; 4) We are especially looking for papers that link technology and institutions in developing and emerging countries.
Most infrastructures have developed independently from one another and constitute self-contained ... more Most infrastructures have developed independently from one another and constitute self-contained socio-technical systems. This is, for example, the case of electricity, of gas, of telecommunications, of air transport, but also of railways. Consequently, also regulation was set up in a self-contained sector-specific manner. However, this way of doing things cannot continue into the future, as the different infrastructure sectors are converging. This is, first, because of the technological and economic dynamics that has been triggered by liberalisation, and which has led to new technologies, often at the interface of the different sectors (e.g., power-to-gas), along with corresponding cross-sectoral business strategies. Convergence also results from recent developments of digital networks (and in particular of the fifth generation of wireless technologies, the 5G) which increasingly act as driver of convergence between sectors, leading to cross-sectoral and much more integrated infrastructures services (e.g., “Mobility-as-a-Service” or MaaS). The take-off of the Internet of Things (IoT) based on 5G networks, which is addressed as the next Industrial Revolution, is expected to accelerate this trend. Finally, climate and other ecological challenges force a direct comparison among different sectors, such as in the case of externalities caused by energy generation (by renewables or by fossil fuels) or by the different transport models. For all three reasons, a more convergent view of the different network industries is rapidly emerging … but will it translate into converging regulation or even into the regulation of convergence? Such is the topic of the 9th Florence Conference on the Regulation of Infrastructures. More precisely, we look for contributions that link different infrastructure sectors, especially in terms of regulating interfaces between the different sectors, as well as regulating more integrated and converging sectors. Contributions utilising multidisciplinary as well as interdisciplinary approaches to regulation are welcome. Papers linking academia and practice, as well as policy research papers are particularly encouraged.
This issue of the Network Industries Quarterly (NIQ) is dedicated to some of the best papers pres... more This issue of the Network Industries Quarterly (NIQ) is dedicated to some of the best papers presented at the Florence Conference on the Regulation of Railways, which took place on November 16 and 17, 2018. Selected academics and practitioners were invited to Florence to discuss the latest developments in the field of railway regulation, such as competition in the market, role of regulatory agencies and economic perspectives.
This special issue of the Network Industries Quarterly is dedicated to papers related to the deve... more This special issue of the Network Industries Quarterly is dedicated to papers related to the developments currently observed across the network industries in Turkey. Academics and practitioners discuss the aforementioned evolutions in the electricity, broadcasting, airline, and platform industries.
Following the 8th Conference on Regulation of Infrastructures, which took place on June 20 and 21... more Following the 8th Conference on Regulation of Infrastructures, which took place on June 20 and 21, 2019 with a particular focus on the key challenges of digitalisation for traditional network industries in the transport, telecoms, water and energy sectors, four papers were selected for this publication due to their topical relevance. This special issue opens with an introductory article by the Members of the Scientific Committee of the conference, Professors of the Florence School of Regulation, Montero and Finger, who consider digital platforms as the new network industries and explore the network effects created by platforms. Fuentes et al. looks at the electricity sector, which is navigating major disruptions that are changing the regulatory and business landscape. The paper addresses whether these changes would help or hinder electrification, taking transportation as an example. Becchis, Postiglione and Valerio examine how platforms are giving rise to a series of regulatory challenges, with a focus on their legal definition, labour-related issues in the digital sphere and the role of data between privacy protection and competition. Knieps analyses the problem of division of labour among all-IP broadband network providers, virtual network service providers and platform operators concomitant with the implementation of adequate governance structures. Ducuing analyses the phenomenon, when several (contemplated) data sharing legal regimes appear to essentially recognise and regulate data as an infrastructure, although without explicit reference to this notion. Her research is based on three cases, namely the Open Data and PSI Directive, the on-going institutional discussion on the governance of in-vehicle data and the freshly adopted regulation of data in the Electricity Directive.
Digitalisation is transforming network industries. The new data layer on top of infrastructures a... more Digitalisation is transforming network industries. The new data layer on top of infrastructures and transport services improves efficiency in the management of traditional networks. However, traditional network managers can be disrupted as their infrastructures and services become intermediated by digital platforms in situation to create more powerful network effects by coordinating previously fragmented or isolated infrastructures and services (indirect and data network effects). As a matter of fact, digital platforms present the transformative characteristics of network industries: network effects, efficiency, scale, concentration, market power, etc. Digital platforms are ‘the new network industries’. This paper identifies the key challenges of digitalisation for traditional network industries and defines a research programme for the new network industries
This special issue offers an overview on digitalisation in road infrastructure. Digitalisation ha... more This special issue offers an overview on digitalisation in road infrastructure. Digitalisation has a vertical impact across the several layers of the road system. This will bring, in the medium to long term, profound challenges and disruptions to the existing status quo in terms of construction, management, and particularly, operation of road systems. From technical design standards up to Mobility as a Service and digital platforms that allow the appearance of new services and mobility solutions, a new paradigm is emerging, able to extract added value from road investments. The road infrastructure was traditionally the central element in the planning and management process of road transport. The focus is changing, and the service and users are now at the very center of the management process. Policy makers, regulators, infrastructure managers and road operators can extract significant benefits from the digitalisation, but to reap those full benefits, it will be necessary to have a clear view on the path ahead. This special issue of the Network Industries Quarterly (NIQ) presents a set of five papers, developed by Researchers of Instituto Superior Técnico – University of Lisbon (Portugal), that provide a holistic perspective over the challenges, impacts, and risks of digitalisation in the road sector. Neves and Velez developed a paper on the expected impacts of autonomous vehicles on road infrastructures of old urban centers. Baptista and Duarte look into the trends of vehicle electrification and its challenges for infrastructure. Sousa and Meireles analyse digitalisation of road infrastructure from a risk management perspective, particularly the possibility of implementing of a holistic quantitative risk management approach, allowed by the growing digitalisation. Trindade and Almeida offer an analysis of digitalisation on the value realisation from infrastructure assets in asset-intensive organisations Finally, Moura looks into digital platforms, particularly Mobility as a Service approaches.
This issue of the Network Industries Quarterly looks into the major challenges infrastructure reg... more This issue of the Network Industries Quarterly looks into the major challenges infrastructure regulation is currently facing as a result of technology, indirect network effects, newly emerging network structures, and new actors. The rapidly evolving Information and Communication Technologies (ICTs) have significantly challenged the traditionally stable landscape of infrastructure services provision. The new data layer over the traditional infrastructure and service layers is transforming network industries: online platforms create new indirect network effects, they allow new service providers to enter the market , and they challenge the central role of traditional infrastructure managers/service providers as entities ensuring the coordination of the sectors. The de- and re-regulation of the different network industries is an on-going process at both the national and global levels. As this process unfolds, ever new phenomena emerge, necessitating a constant reassessment of the content and objectives of regulation. Following the 7th Conference on Regulation of Infrastructures which took place on June 21 and 22, 2018 with a particular focus on the regulatory challenges facing network industries in the transport, telecoms, water and energy sectors, four papers were selected for this publication due to their topical relevance. Frieden examines how Internet ventures operate as intermediaries serving both upstream sources of content and applications, as well as downstream consumers, and considers how governments can respond to the onset of price and quality of service discrimination within the Internet ecosystem. Knieps looks at ICT innovations as the key drivers for a paradigm shift from traditional intramodal transportation markets to intermodal shared mobility markets. He identifies the changing necessities of regulations regarding market entry, public subsidies, and technical regulations, and presents the potentials of pilot projects, as well as the impact of shared mobility on congestion and pollution. Rossotto et al. analyse the existing literature on digital platforms and distinguish four aspects, which policy makers should keep in mind, working on appropriate policy frameworks for digital platforms in emerging markets. These four aspects are: definition of multisided-platforms; emerging business models; technology and behavioral enablers; platform competitive dynamics. Finally, Vanrykel, Ernst and Bourgeois look at the platform Share&Charge, and present its functioning and potential, before assessing the tax treatment of operations involved in the use of the platform.
Under the terms of Internet of Things, Industry 4.0 and Physical Internet as well as several othe... more Under the terms of Internet of Things, Industry 4.0 and Physical Internet as well as several others, many automatization and digitalization trends are on the move for the transportation, logistics and supply chain sector. Many technology aspects are driving these developments, in line with economic aspects. But increasingly also questions of human perception, motivation and safety are entering the discussion, emerging as a crucial topical area for overall economic impact and success. Regulation for technology developments in artificial intelligence and robotics are commonly seen as one of the important yet structurally neglected fields regarding the human perspective on increasing automatization. This was highlighted in 2017 by the European Parliament report and a public consultation, indicating that a vast majority of citizens in Europe is regarding those developments as positive innovation fields but where further safeguards and regulations are needed, see the EP Resolution on Civil Law Rules on Robotics, 2015/2103(INL). This issue is connected to an innovation workshop that took place on February 26 2018 at the Florence School of Regulation and directed at discussing the state of the art within the field of transportation, logistics and supply chain management. Furthermore, an evaluation regarding possible actions like regulation, agency- or industry-based approaches for establishing safeguards towards effective but risk-mitigating settings for this sector is aimed for. Initial contributions collected here are directed at providing an interdisciplinary overview regarding the perspectives of industry and logistics actors, researchers in the economic, computer sciences, law and sociology domains as well as other interested parties from the field of political actors and associations. This shall enable the start of an open discussion what sorts of regulation are necessary in order to secure human trust and motivation in AI and robotics developments without placing too much of a burden to the economic development in the transportation, logistics and supply chain sector.
Many countries are currently firmly committing to a transition towards a more sustainable energy ... more Many countries are currently firmly committing to a transition towards a more sustainable energy system, each facing their own unique challenges. The Swiss energy transition is particularly challenging due to a combination of commitments: (1) a gradual phase-out of nuclear energy, currently about a third of the country’s electricity production, is expected by 2034, (2) construction of new renewable energy sources such as solar PV, wind and micro-hydro, (3) electrification of heating and transportation, (4) energy saving, and (5) stringent CO2 emission targets.
Utility companies play an important role in the realization of the Swiss energy transition, but are also facing numerous strategic challenges as a consequence of a rapidly changing playing field. The commitments necessary to transition towards a more sustainable energy system are not necessarily aligned with the current operations of local utility companies. For example, the lack of incentives for energy efficiency programs, market opening, smart grids and renewable energy has utilities looking for new business models. This issue of Network Industries Quarterly (NIQ) is linked to the Certificate of Advanced Studies (CAS) in Governing Energy Transitions, a continuing education program organized by the Chair Management of Network Industries at the École Polytechnique Fédérale de Lausanne (EPFL). The program has a strong practical component, embedded in an academic framework of multi-level governance. Participants of the program were invited to contribute to this issue, sharing their insights on the strategic challenges of local utility companies in the Swiss energy transition.
The following are the themes included in this issue of NIQ: • An overview of strategic responses of urban utility companies to the energy transition: comparing Swiss and German utilities. • Implementation of a local demand-side management program in Switzerland. • An international perspective on demand-side management programs, and policy-recommendations for a Swiss governance model. • A broader identification of new business opportunities for utility companies, arising from the ongoing energy transition.
Water supply and sanitation are essential for socioeconomic and environmental sustainability. Th... more Water supply and sanitation are essential for socioeconomic and environmental sustainability. The adequate provision of these services is full of complexities and involves a great many challenges. Growing population and economic activities, plus soaring energy generation, environmental concerns, and climate change will exert great pressures on water security. It is not surprising that water has climbed to the top of the political agenda. The requirement of appropriate public policies to deal with these challenges is self-evident. Sound water regulation is a major component of this design. The unfolding of water regulation, however, reveals a wide and complex kaleidoscope of affairs, which involve different actors, dimensions and spatial scales. Surface and groundwater provides another set of challenges in discussing water regulation. More particularly, transboundary waters – within and between countries – impose, in addition to technical challenges, the need for diplomatic skills in the handling of their issue and the proposal of solutions. This issue of Network Industries Quarterly (NIQ) is linked to the Public Policy and Water Regulation International Forum, which was organized by Tecnologico de Monterrey, the Water Center for Latin America and the Caribbean, and Cervecería Cuauhtémoc Moctezuma – Heineken México in May 2017. The Forum had an academic framework plus perspectives from practitioners working in the field of water regulation in Latin America. Other selected contributors were invited to complete this issue with its focus on the Americas. The papers on Canada and Texas are a reflection of this inclusion.
The following are the themes included in this issue of NIQ: • Science, policy and management of groundwater in Canada; • Groundwater regulation in Texas; • Regulation of water and sanitation services in Latin America; • Incorporation of natural infrastructure in water management in Latin America; • The water guarantee fee in Mexico.
This issue of the Network Industries Quarterly looks into the regulatory challenges facing the de... more This issue of the Network Industries Quarterly looks into the regulatory challenges facing the development of smart cities. With the acceleration of technological developments in network industries and, in particular, in infrastructures, there is a constant need to review regulatory schema. Demographic changes, climate change, and the evolution of Information and Communication Technologies (ICTs) are disrupting the traditional landscape of urban infrastructure services and questions are arising. How should the sharing economy be regulated in order for regulators to invest in the infrastructure that supports it? How should public goods and services including transportation, telecommunications, water and energy be managed and distributed? While the possibilities are exciting and innovation continues to gain momentum at an accelerated pace, challenges are inevitable especially when it comes to infrastructure financing and the general management of smart cities. Following the 6th Conference on the Regulation of Infrastructures which took place on 16 June 2017 with a particular focus on the regulatory challenges facing smart cities in the transport, telecoms, water and energy sectors, four papers were selected for this publication due to their topical relevance. Olivera Cruz and Miranda Sarmento address the regulation and financing of smart cities through Public Private Partnerships (PPPs), and how that financing can be put to use to make infrastructure smarter as quickly as possible through an in-depth analysis of the various PPP models used to date, and possible improvements. Bock and Hosse present a digital model in development for the planning, tracking and analysis of passively generated mobility data for regulators. The model aims to facilitate the use of intelligently managed renewables by providing easy alternatives for the car to transport users. Marlot and Brunel look at Mobility as a Service (MaaS) and how regulation can incentivise consumers to choose shared mobility over the private car. Finally, Knieps provides an overview of the network economics of smart, sustainable cities, with a focus on the potentials for sharing activities and prosumage, as well as smart congestion management.
This issue of the Network Industries Quarterly looks into the change in the Turkish electricity m... more This issue of the Network Industries Quarterly looks into the change in the Turkish electricity markets. The regulatory reform in the Turkish electricity markets began in the 1990s. It has culminated with the privatization of distribution of retail companies in the early 2010s. The enactment of the Electricity Market Act in 2001 was a turning point toward a more competitive market environment. However, the evolution of the reform has not gone perfectly. The transformation of the electricity industry had conflicting consequences for the market structure. The tensions between economic and political preferences have become more prevalent. In this respect, the Turkish experience provides additional insights into issues surrounding the process of opening markets to competition. While regulatory reform seems complete in terms of unbundling, tariff policies and the institutionalization of regulatory processes, competition policy issues begin to surface and political interference become more prevalent. In this issue, we look into different aspects of the recent Turkish experience. In the first article, Özbuğday and Alma discuss distribution/retail unbundling in the Turkish electricity markets. The paper draws attention to the increasing issues of competition policy as a result of privatizations in the industry. The second article by Şenerdem and Akkemik brings forward a fundamental issue: the lack of data and the difficulty of constructing social accounting matrices. The authors introduce a social accounting matrix (SAM) with a special emphasis on electricity for the year of 2010. They put first steps forward of developing a general empirical perspective on the nature of electricity markets. The lack of reliable data has become a key issue in understanding the relative success of the reform efforts. Significantly, changes in efficiency are very hard to measure. These difficulties create opportunities for political interventions. The third paper by Oğuz and Göksal addresses recent policy shifts in the Turkish electricity markets. Focusing on the existing distribution tariffs, the paper emphasizes the need to improve the regulatory framework. In the last paper, Benli and Benli look into a major hurdle in the implementation of the regulatory reform; namely, how to deal with illegal use and electricity theft from a legal perspective. By applying the Coase theorem, they argue that electricity theft should be seen as a social problem rather than a contracting issue.
This edition of Network Industries Quarterly aims to provide insights into the general legal fram... more This edition of Network Industries Quarterly aims to provide insights into the general legal framework for liberalization and regulation of public utilities, notably communal services, in countries of ex-Yugoslavia. Among ex-Yugoslav countries, two are European Union (EU) Member States (Slovenia and Croatia), two are in the process of accession negotiations (Montenegro, Serbia), one is a candidate country (Macedonia) and one represents a potential candidate country (Bosnia and Herzegovina). After World War II, ex-Yugoslavia was a unique example of self-management, and a specific system of governance and societal ownership of companies, including public utilities. In the early 1990s, Yugoslav disintegration and democratization coincided with economic transformation from a socialist market economy to a market economy. However, legacies of the past economic system are still present in some aspects, albeit in some countries more than others, and influence the process of liberalization of public utilities. This process was urged by joining the EU or is still urged by EU accession requirements. Most of the impetus for liberalization comes as a response to low investments in infrastructure, as most of these countries have reached high debt levels and therefore a private finance infrastructure seems to be a solution. The market liberalization agenda began to come to the front, and regulatory reform urged creation of independent regulatory agencies for state-wide public utilities such as electricity and gas markets. On the other side, municipal (communal) services are mainly provided by local authorities and public operators. Liberalization agenda in many of these countries presupposes privatization of public undertakings, contracting out or alternatives to privatization such as Public-Private Partnerships (PPPs) and concessions, with special attention given to the general legal framework for PPPs and concessions in these countries. The following are some of the issues the country contributions have strived to address: • The scope and characteristics of public undertakings providing utilities and the character of public utilities owned or regulated by local self-government units; • PPPs and concessions as an “alternative” to full privatization: basic overview of active projects and reference to the legal and institutional framework for PPPs and concessions; • Liberalization agenda and the main issues in regulating local public utilities (communal services); • The character of regulatory powers and challenges posed to municipalities in regulating communal services. Although all country contributions have a similar structure, the level of detail may differ, notably due to the existing level of development of the normative and institutional framework in a respective country and different experiences in private sector involvement. After presenting the institutional and normative setting, in the concluding remarks authors have identified the main pitfalls and prospects for change. Although differences exist, it seems that the volatile political situation in many countries of ex-Yugoslavia and the fragile political will to perform necessary reforms of public (including local) administration and public sector of the economy are the most important deficiencies. Therefore, it is necessary to adjust legal and regulatory frameworks and create a stable economic environment. Local administration and business communities have to understand the concept of PPPs and private finance initiatives, while policymakers and local authorities must develop adequate plans and facilitatory structures for potential PPP projects, including capacities to initiate projects and perform cost-benefit analysis for the potential projects.
In the last three decades, state-owned railways have been reformed in many countries. The Japanes... more In the last three decades, state-owned railways have been reformed in many countries. The Japanese National Railways (JNR) was the first railway system to be divided and corporatized in 1987. In the following year, the Swedish State Railways (SJ) was reformed by introducing vertical separation, and this case had much influence on the stipulation of wider EU railway policies. Although the EU railway policies were stipulated based on regional context specificities, these policies and their results have been discussed even in some non-EU countries and have tended to have large impacts on the railway sector of those countries. Nevertheless, there are several other countries where the railways were reformed by different models and could improve the performance by certain measures such as inviting private investments, avoiding cross-subsidies among different divisions, liberalising the management of railways, and introducing intra-modal competition by an appropriate means. The railway sector is required to compete with other modes of transport, especially roads to attain environmental regions. When it comes to railway reform, it is essential for policy makers and experts to learn lessons from other countries' experiences. Based on the background given, this issue aims to understand the lessons from past railway reforms which the sector has experienced under different circumstances. Specifically, besides railway reforms in Europe with a focus on the UK, the issue discusses railway reforms in four other countries: Japan, USA, Russia, and Mexico.
The de- and re-regulation of the different network industries is an on-going process at both the ... more The de- and re-regulation of the different network industries is an on-going process at both the national and global levels. As this process unfolds, ever new phenomena emerge, necessitating a constant reassessment of the content and objectives of regulation. The rapidly evolving Information and Communication Technologies (ICTs) have significantly challenged the traditionally stable landscape of infrastructure services provision. The new data layer over the traditional infrastructure and service layers is transforming network industries: online platforms create new indirect network effects, they allow new service providers to enter the market (prosumers, sharing economy providers, etc.), and they challenge the central role of traditional infrastructure managers/service providers as entities ensuring the coordination of the sectors. Offering traditional and new services in an innovative way is a growing trend among public authorities, traditional providers as well as new private operators, prosumers and platforms. However, together with great opportunities, disruptive innovations also give rise to new regulatory challenges, especially when it comes to infrastructure financing and the coordination of operations. This 7th Florence Conference on the Regulation of Infrastructures aims at taking stock of the major challenges infrastructure regulation is currently facing as a result of technology, indirect network effects, newly emerging network structures (decentralized networks, distributed networks, sharing economy), and new actors (prosumers, OTTs, platforms, etc). Papers will be presented in different parallel sessions dedicated to the following infrastructure sectors: Communications and media; Energy and climate; Transport and mobility; Water distribution; Wastewater and waste management. We encourage contributions that link different infrastructure sectors, especially in light of the ICTs. Contributions utilizing multidisciplinary, as well as interdisciplinary approaches to regulation, are welcome. Papers linking academia and practice, as well as policy research papers are particularly encouraged. The Conference is intended for academics such as PhD students, PostDocs and Assistant/associate/full Professors as well as academically minded practitioners.
The de-and re-regulation of the different network industries is an ongoing process at national an... more The de-and re-regulation of the different network industries is an ongoing process at national and global level. As this process unfolds, ever new phenomena emerge, which call for a constant reassessment of the content and objectives of regulation. The question becomes even more challenging when looking at recent infrastructure development at the local level. Phenomena including (and not limited to) the demographic changes, the rapidly evolving consequences of climate change and the evolution of the Information and Communication Technologies (ICTs) have significantly challenged the traditionally stable landscape of urban infrastructure services provision. Providing traditional and new services in an innovative way is a growing trend among public authorities, traditional providers as well as new private prosumers and platforms for sharing economy. Both small and large agglomerations are seeking to become the so-called " smart cities ". However, together with great opportunities, disruptive innovations also give rise to new regulatory challenges especially on infrastructure financing and management of the future " smart cities ". This 6th Florence Conference on the Regulation of Infrastructures aims at taking stock of the major challenges infrastructure regulation is currently facing at the local level. Papers will be presented in different parallel sessions dedicated to the following infrastructure sectors: Communications and media; Energy and Climate; Transport; Water distribution; Wastewater and waste management. We encourage contributions that link technology and institutions in more than one infrastructure sector. Contributions utilizing multidisciplinary as well as interdisciplinary approaches to regulation are welcome. Papers linking academia and practice, as well as policy research papers are particularly encouraged. The conference is intended for academics such as PhD students, PostDocs and Assistant/associate/full Professors as well as academically minded practitioners.
The network industries in Latin America (from Mexico to Chile) are undergoing substantial changes... more The network industries in Latin America (from Mexico to Chile) are undergoing substantial changes, marked in particular by their liberalization but also their privatization. Similarly, the regulation of the network industries' sectors is gradually being institutionalized following European, American, but also endogenous approaches. Overall, however, the de-and re-regulation of the network industries in Latin America follows no clear model and results are mixed, at best. This special issue of Utilities Policy aims at shedding light at the de-and the re-regulation practices in the different network industries and in the different Latin American countries, notably Mexico, Brazil, Colombia, Peru, Argentina, Chile and others. This special issue is especially dedicated to critically analyzing these practices, along with the policies that have inspired them.
The goal of this special issue of the Network Industries Quarterly is to measure the effects, cau... more The goal of this special issue of the Network Industries Quarterly is to measure the effects, causes and consequences of inadequate levels of infrastructure investment in Latin America Countries. It is also to help in understanding the restrictions that money and capital markets in LAC´s are facing as they strive to increase their participation in the process of infrastructure financing. Also, the objective of this special issue is to help to identify the conditions for the capital and money markets to increase their participation in the infrastructure financing process.
This 5th Conference on the Regulation of Infrastructures aims at taking stock of the major challe... more This 5th Conference on the Regulation of Infrastructures aims at taking stock of the major challenges infrastructure regulation is currently facing in the age of their rapid digitalization. The de- and re-regulation of the different network industries is an ongoing process at national and global levels. As this process unfolds, ever new phenomena emerge. Yet, the question about the right mixture between market, economic, technical and social regulation remains wide open in all the network industries. The question becomes even more challenging when looking at recent infrastructure development as triggered by their pervasive digitalization. Not only are the different infrastructures transformed by their digitalization – e.g., digital transport, smart energy, etc. – calling for new approaches to regulating them, but moreover does digitalization become a phenomenon in its own right. The European Commission actually sees digitalization as a means to accelerate integration, to tear down regulatory walls and to move from 28 national markets to a single one. Consequently, digitalization and especially its implications in terms of privacy and security also require regulatory attention.
The de- and re-regulation of the different network industries is an ongoing process at the global... more The de- and re-regulation of the different network industries is an ongoing process at the global level. As this process unfolds, ever new phenomena emerge, which generally call for more, rather than less regulatory intervention. Yet, the question about the right mixture between market, economic, technical and social regulation remains widely open in all the network industries. The question becomes even more challenging when looking at infrastructure development in the different regions of the world. While most of the European countries have a long lasting story of national regulation and have then started to put considerable effort in harmonising their regulation at the EU level, outside of the EU, regulation of different network industries has followed different paths. This Florence School special issue gathers contributions to the 4th Florence Conference on the Regulation of Infrastructures and aims at taking stock of the major challenges infrastructure regulation is currently facing all over the world, with a special focus also on emerging countries. Due to impossibility for many to participate in the Conference, papers that have not been presented at the Conference will also be considered for publication. Areas of interest include, but are not limited to: 1) Issues relevant in the main infrastructure sectors, notably telecommunications, postal services, electricity, gas, railways, air transport, urban public transport, as well as water distribution and sanitation; 2) Issues that are tackled from various disciplinary approaches, notably engineering, economics, law and political science; interdisciplinary approaches are particularly encouraged; 3) Case studies that are linking an academic approach to practical relevance; policy relevant research papers are particularly welcomed; 4) We are especially looking for papers that link technology and institutions in developing and emerging countries.
Most infrastructures have developed independently from one another and constitute self-contained ... more Most infrastructures have developed independently from one another and constitute self-contained socio-technical systems. This is, for example, the case of electricity, of gas, of telecommunications, of air transport, but also of railways. Consequently, also regulation was set up in a self-contained sector-specific manner. However, this way of doing things cannot continue into the future, as the different infrastructure sectors are converging. This is, first, because of the technological and economic dynamics that has been triggered by liberalisation, and which has led to new technologies, often at the interface of the different sectors (e.g., power-to-gas), along with corresponding cross-sectoral business strategies. Convergence also results from recent developments of digital networks (and in particular of the fifth generation of wireless technologies, the 5G) which increasingly act as driver of convergence between sectors, leading to cross-sectoral and much more integrated infrastructures services (e.g., “Mobility-as-a-Service” or MaaS). The take-off of the Internet of Things (IoT) based on 5G networks, which is addressed as the next Industrial Revolution, is expected to accelerate this trend. Finally, climate and other ecological challenges force a direct comparison among different sectors, such as in the case of externalities caused by energy generation (by renewables or by fossil fuels) or by the different transport models. For all three reasons, a more convergent view of the different network industries is rapidly emerging … but will it translate into converging regulation or even into the regulation of convergence? Such is the topic of the 9th Florence Conference on the Regulation of Infrastructures. More precisely, we look for contributions that link different infrastructure sectors, especially in terms of regulating interfaces between the different sectors, as well as regulating more integrated and converging sectors. Contributions utilising multidisciplinary as well as interdisciplinary approaches to regulation are welcome. Papers linking academia and practice, as well as policy research papers are particularly encouraged.
This issue of the Network Industries Quarterly (NIQ) is dedicated to some of the best papers pres... more This issue of the Network Industries Quarterly (NIQ) is dedicated to some of the best papers presented at the Florence Conference on the Regulation of Railways, which took place on November 16 and 17, 2018. Selected academics and practitioners were invited to Florence to discuss the latest developments in the field of railway regulation, such as competition in the market, role of regulatory agencies and economic perspectives.
This special issue of the Network Industries Quarterly is dedicated to papers related to the deve... more This special issue of the Network Industries Quarterly is dedicated to papers related to the developments currently observed across the network industries in Turkey. Academics and practitioners discuss the aforementioned evolutions in the electricity, broadcasting, airline, and platform industries.
Following the 8th Conference on Regulation of Infrastructures, which took place on June 20 and 21... more Following the 8th Conference on Regulation of Infrastructures, which took place on June 20 and 21, 2019 with a particular focus on the key challenges of digitalisation for traditional network industries in the transport, telecoms, water and energy sectors, four papers were selected for this publication due to their topical relevance. This special issue opens with an introductory article by the Members of the Scientific Committee of the conference, Professors of the Florence School of Regulation, Montero and Finger, who consider digital platforms as the new network industries and explore the network effects created by platforms. Fuentes et al. looks at the electricity sector, which is navigating major disruptions that are changing the regulatory and business landscape. The paper addresses whether these changes would help or hinder electrification, taking transportation as an example. Becchis, Postiglione and Valerio examine how platforms are giving rise to a series of regulatory challenges, with a focus on their legal definition, labour-related issues in the digital sphere and the role of data between privacy protection and competition. Knieps analyses the problem of division of labour among all-IP broadband network providers, virtual network service providers and platform operators concomitant with the implementation of adequate governance structures. Ducuing analyses the phenomenon, when several (contemplated) data sharing legal regimes appear to essentially recognise and regulate data as an infrastructure, although without explicit reference to this notion. Her research is based on three cases, namely the Open Data and PSI Directive, the on-going institutional discussion on the governance of in-vehicle data and the freshly adopted regulation of data in the Electricity Directive.
Digitalisation is transforming network industries. The new data layer on top of infrastructures a... more Digitalisation is transforming network industries. The new data layer on top of infrastructures and transport services improves efficiency in the management of traditional networks. However, traditional network managers can be disrupted as their infrastructures and services become intermediated by digital platforms in situation to create more powerful network effects by coordinating previously fragmented or isolated infrastructures and services (indirect and data network effects). As a matter of fact, digital platforms present the transformative characteristics of network industries: network effects, efficiency, scale, concentration, market power, etc. Digital platforms are ‘the new network industries’. This paper identifies the key challenges of digitalisation for traditional network industries and defines a research programme for the new network industries
This special issue offers an overview on digitalisation in road infrastructure. Digitalisation ha... more This special issue offers an overview on digitalisation in road infrastructure. Digitalisation has a vertical impact across the several layers of the road system. This will bring, in the medium to long term, profound challenges and disruptions to the existing status quo in terms of construction, management, and particularly, operation of road systems. From technical design standards up to Mobility as a Service and digital platforms that allow the appearance of new services and mobility solutions, a new paradigm is emerging, able to extract added value from road investments. The road infrastructure was traditionally the central element in the planning and management process of road transport. The focus is changing, and the service and users are now at the very center of the management process. Policy makers, regulators, infrastructure managers and road operators can extract significant benefits from the digitalisation, but to reap those full benefits, it will be necessary to have a clear view on the path ahead. This special issue of the Network Industries Quarterly (NIQ) presents a set of five papers, developed by Researchers of Instituto Superior Técnico – University of Lisbon (Portugal), that provide a holistic perspective over the challenges, impacts, and risks of digitalisation in the road sector. Neves and Velez developed a paper on the expected impacts of autonomous vehicles on road infrastructures of old urban centers. Baptista and Duarte look into the trends of vehicle electrification and its challenges for infrastructure. Sousa and Meireles analyse digitalisation of road infrastructure from a risk management perspective, particularly the possibility of implementing of a holistic quantitative risk management approach, allowed by the growing digitalisation. Trindade and Almeida offer an analysis of digitalisation on the value realisation from infrastructure assets in asset-intensive organisations Finally, Moura looks into digital platforms, particularly Mobility as a Service approaches.
This issue of the Network Industries Quarterly looks into the major challenges infrastructure reg... more This issue of the Network Industries Quarterly looks into the major challenges infrastructure regulation is currently facing as a result of technology, indirect network effects, newly emerging network structures, and new actors. The rapidly evolving Information and Communication Technologies (ICTs) have significantly challenged the traditionally stable landscape of infrastructure services provision. The new data layer over the traditional infrastructure and service layers is transforming network industries: online platforms create new indirect network effects, they allow new service providers to enter the market , and they challenge the central role of traditional infrastructure managers/service providers as entities ensuring the coordination of the sectors. The de- and re-regulation of the different network industries is an on-going process at both the national and global levels. As this process unfolds, ever new phenomena emerge, necessitating a constant reassessment of the content and objectives of regulation. Following the 7th Conference on Regulation of Infrastructures which took place on June 21 and 22, 2018 with a particular focus on the regulatory challenges facing network industries in the transport, telecoms, water and energy sectors, four papers were selected for this publication due to their topical relevance. Frieden examines how Internet ventures operate as intermediaries serving both upstream sources of content and applications, as well as downstream consumers, and considers how governments can respond to the onset of price and quality of service discrimination within the Internet ecosystem. Knieps looks at ICT innovations as the key drivers for a paradigm shift from traditional intramodal transportation markets to intermodal shared mobility markets. He identifies the changing necessities of regulations regarding market entry, public subsidies, and technical regulations, and presents the potentials of pilot projects, as well as the impact of shared mobility on congestion and pollution. Rossotto et al. analyse the existing literature on digital platforms and distinguish four aspects, which policy makers should keep in mind, working on appropriate policy frameworks for digital platforms in emerging markets. These four aspects are: definition of multisided-platforms; emerging business models; technology and behavioral enablers; platform competitive dynamics. Finally, Vanrykel, Ernst and Bourgeois look at the platform Share&Charge, and present its functioning and potential, before assessing the tax treatment of operations involved in the use of the platform.
Under the terms of Internet of Things, Industry 4.0 and Physical Internet as well as several othe... more Under the terms of Internet of Things, Industry 4.0 and Physical Internet as well as several others, many automatization and digitalization trends are on the move for the transportation, logistics and supply chain sector. Many technology aspects are driving these developments, in line with economic aspects. But increasingly also questions of human perception, motivation and safety are entering the discussion, emerging as a crucial topical area for overall economic impact and success. Regulation for technology developments in artificial intelligence and robotics are commonly seen as one of the important yet structurally neglected fields regarding the human perspective on increasing automatization. This was highlighted in 2017 by the European Parliament report and a public consultation, indicating that a vast majority of citizens in Europe is regarding those developments as positive innovation fields but where further safeguards and regulations are needed, see the EP Resolution on Civil Law Rules on Robotics, 2015/2103(INL). This issue is connected to an innovation workshop that took place on February 26 2018 at the Florence School of Regulation and directed at discussing the state of the art within the field of transportation, logistics and supply chain management. Furthermore, an evaluation regarding possible actions like regulation, agency- or industry-based approaches for establishing safeguards towards effective but risk-mitigating settings for this sector is aimed for. Initial contributions collected here are directed at providing an interdisciplinary overview regarding the perspectives of industry and logistics actors, researchers in the economic, computer sciences, law and sociology domains as well as other interested parties from the field of political actors and associations. This shall enable the start of an open discussion what sorts of regulation are necessary in order to secure human trust and motivation in AI and robotics developments without placing too much of a burden to the economic development in the transportation, logistics and supply chain sector.
Many countries are currently firmly committing to a transition towards a more sustainable energy ... more Many countries are currently firmly committing to a transition towards a more sustainable energy system, each facing their own unique challenges. The Swiss energy transition is particularly challenging due to a combination of commitments: (1) a gradual phase-out of nuclear energy, currently about a third of the country’s electricity production, is expected by 2034, (2) construction of new renewable energy sources such as solar PV, wind and micro-hydro, (3) electrification of heating and transportation, (4) energy saving, and (5) stringent CO2 emission targets.
Utility companies play an important role in the realization of the Swiss energy transition, but are also facing numerous strategic challenges as a consequence of a rapidly changing playing field. The commitments necessary to transition towards a more sustainable energy system are not necessarily aligned with the current operations of local utility companies. For example, the lack of incentives for energy efficiency programs, market opening, smart grids and renewable energy has utilities looking for new business models. This issue of Network Industries Quarterly (NIQ) is linked to the Certificate of Advanced Studies (CAS) in Governing Energy Transitions, a continuing education program organized by the Chair Management of Network Industries at the École Polytechnique Fédérale de Lausanne (EPFL). The program has a strong practical component, embedded in an academic framework of multi-level governance. Participants of the program were invited to contribute to this issue, sharing their insights on the strategic challenges of local utility companies in the Swiss energy transition.
The following are the themes included in this issue of NIQ: • An overview of strategic responses of urban utility companies to the energy transition: comparing Swiss and German utilities. • Implementation of a local demand-side management program in Switzerland. • An international perspective on demand-side management programs, and policy-recommendations for a Swiss governance model. • A broader identification of new business opportunities for utility companies, arising from the ongoing energy transition.
Water supply and sanitation are essential for socioeconomic and environmental sustainability. Th... more Water supply and sanitation are essential for socioeconomic and environmental sustainability. The adequate provision of these services is full of complexities and involves a great many challenges. Growing population and economic activities, plus soaring energy generation, environmental concerns, and climate change will exert great pressures on water security. It is not surprising that water has climbed to the top of the political agenda. The requirement of appropriate public policies to deal with these challenges is self-evident. Sound water regulation is a major component of this design. The unfolding of water regulation, however, reveals a wide and complex kaleidoscope of affairs, which involve different actors, dimensions and spatial scales. Surface and groundwater provides another set of challenges in discussing water regulation. More particularly, transboundary waters – within and between countries – impose, in addition to technical challenges, the need for diplomatic skills in the handling of their issue and the proposal of solutions. This issue of Network Industries Quarterly (NIQ) is linked to the Public Policy and Water Regulation International Forum, which was organized by Tecnologico de Monterrey, the Water Center for Latin America and the Caribbean, and Cervecería Cuauhtémoc Moctezuma – Heineken México in May 2017. The Forum had an academic framework plus perspectives from practitioners working in the field of water regulation in Latin America. Other selected contributors were invited to complete this issue with its focus on the Americas. The papers on Canada and Texas are a reflection of this inclusion.
The following are the themes included in this issue of NIQ: • Science, policy and management of groundwater in Canada; • Groundwater regulation in Texas; • Regulation of water and sanitation services in Latin America; • Incorporation of natural infrastructure in water management in Latin America; • The water guarantee fee in Mexico.
This issue of the Network Industries Quarterly looks into the regulatory challenges facing the de... more This issue of the Network Industries Quarterly looks into the regulatory challenges facing the development of smart cities. With the acceleration of technological developments in network industries and, in particular, in infrastructures, there is a constant need to review regulatory schema. Demographic changes, climate change, and the evolution of Information and Communication Technologies (ICTs) are disrupting the traditional landscape of urban infrastructure services and questions are arising. How should the sharing economy be regulated in order for regulators to invest in the infrastructure that supports it? How should public goods and services including transportation, telecommunications, water and energy be managed and distributed? While the possibilities are exciting and innovation continues to gain momentum at an accelerated pace, challenges are inevitable especially when it comes to infrastructure financing and the general management of smart cities. Following the 6th Conference on the Regulation of Infrastructures which took place on 16 June 2017 with a particular focus on the regulatory challenges facing smart cities in the transport, telecoms, water and energy sectors, four papers were selected for this publication due to their topical relevance. Olivera Cruz and Miranda Sarmento address the regulation and financing of smart cities through Public Private Partnerships (PPPs), and how that financing can be put to use to make infrastructure smarter as quickly as possible through an in-depth analysis of the various PPP models used to date, and possible improvements. Bock and Hosse present a digital model in development for the planning, tracking and analysis of passively generated mobility data for regulators. The model aims to facilitate the use of intelligently managed renewables by providing easy alternatives for the car to transport users. Marlot and Brunel look at Mobility as a Service (MaaS) and how regulation can incentivise consumers to choose shared mobility over the private car. Finally, Knieps provides an overview of the network economics of smart, sustainable cities, with a focus on the potentials for sharing activities and prosumage, as well as smart congestion management.
This issue of the Network Industries Quarterly looks into the change in the Turkish electricity m... more This issue of the Network Industries Quarterly looks into the change in the Turkish electricity markets. The regulatory reform in the Turkish electricity markets began in the 1990s. It has culminated with the privatization of distribution of retail companies in the early 2010s. The enactment of the Electricity Market Act in 2001 was a turning point toward a more competitive market environment. However, the evolution of the reform has not gone perfectly. The transformation of the electricity industry had conflicting consequences for the market structure. The tensions between economic and political preferences have become more prevalent. In this respect, the Turkish experience provides additional insights into issues surrounding the process of opening markets to competition. While regulatory reform seems complete in terms of unbundling, tariff policies and the institutionalization of regulatory processes, competition policy issues begin to surface and political interference become more prevalent. In this issue, we look into different aspects of the recent Turkish experience. In the first article, Özbuğday and Alma discuss distribution/retail unbundling in the Turkish electricity markets. The paper draws attention to the increasing issues of competition policy as a result of privatizations in the industry. The second article by Şenerdem and Akkemik brings forward a fundamental issue: the lack of data and the difficulty of constructing social accounting matrices. The authors introduce a social accounting matrix (SAM) with a special emphasis on electricity for the year of 2010. They put first steps forward of developing a general empirical perspective on the nature of electricity markets. The lack of reliable data has become a key issue in understanding the relative success of the reform efforts. Significantly, changes in efficiency are very hard to measure. These difficulties create opportunities for political interventions. The third paper by Oğuz and Göksal addresses recent policy shifts in the Turkish electricity markets. Focusing on the existing distribution tariffs, the paper emphasizes the need to improve the regulatory framework. In the last paper, Benli and Benli look into a major hurdle in the implementation of the regulatory reform; namely, how to deal with illegal use and electricity theft from a legal perspective. By applying the Coase theorem, they argue that electricity theft should be seen as a social problem rather than a contracting issue.
This edition of Network Industries Quarterly aims to provide insights into the general legal fram... more This edition of Network Industries Quarterly aims to provide insights into the general legal framework for liberalization and regulation of public utilities, notably communal services, in countries of ex-Yugoslavia. Among ex-Yugoslav countries, two are European Union (EU) Member States (Slovenia and Croatia), two are in the process of accession negotiations (Montenegro, Serbia), one is a candidate country (Macedonia) and one represents a potential candidate country (Bosnia and Herzegovina). After World War II, ex-Yugoslavia was a unique example of self-management, and a specific system of governance and societal ownership of companies, including public utilities. In the early 1990s, Yugoslav disintegration and democratization coincided with economic transformation from a socialist market economy to a market economy. However, legacies of the past economic system are still present in some aspects, albeit in some countries more than others, and influence the process of liberalization of public utilities. This process was urged by joining the EU or is still urged by EU accession requirements. Most of the impetus for liberalization comes as a response to low investments in infrastructure, as most of these countries have reached high debt levels and therefore a private finance infrastructure seems to be a solution. The market liberalization agenda began to come to the front, and regulatory reform urged creation of independent regulatory agencies for state-wide public utilities such as electricity and gas markets. On the other side, municipal (communal) services are mainly provided by local authorities and public operators. Liberalization agenda in many of these countries presupposes privatization of public undertakings, contracting out or alternatives to privatization such as Public-Private Partnerships (PPPs) and concessions, with special attention given to the general legal framework for PPPs and concessions in these countries. The following are some of the issues the country contributions have strived to address: • The scope and characteristics of public undertakings providing utilities and the character of public utilities owned or regulated by local self-government units; • PPPs and concessions as an “alternative” to full privatization: basic overview of active projects and reference to the legal and institutional framework for PPPs and concessions; • Liberalization agenda and the main issues in regulating local public utilities (communal services); • The character of regulatory powers and challenges posed to municipalities in regulating communal services. Although all country contributions have a similar structure, the level of detail may differ, notably due to the existing level of development of the normative and institutional framework in a respective country and different experiences in private sector involvement. After presenting the institutional and normative setting, in the concluding remarks authors have identified the main pitfalls and prospects for change. Although differences exist, it seems that the volatile political situation in many countries of ex-Yugoslavia and the fragile political will to perform necessary reforms of public (including local) administration and public sector of the economy are the most important deficiencies. Therefore, it is necessary to adjust legal and regulatory frameworks and create a stable economic environment. Local administration and business communities have to understand the concept of PPPs and private finance initiatives, while policymakers and local authorities must develop adequate plans and facilitatory structures for potential PPP projects, including capacities to initiate projects and perform cost-benefit analysis for the potential projects.
In the last three decades, state-owned railways have been reformed in many countries. The Japanes... more In the last three decades, state-owned railways have been reformed in many countries. The Japanese National Railways (JNR) was the first railway system to be divided and corporatized in 1987. In the following year, the Swedish State Railways (SJ) was reformed by introducing vertical separation, and this case had much influence on the stipulation of wider EU railway policies. Although the EU railway policies were stipulated based on regional context specificities, these policies and their results have been discussed even in some non-EU countries and have tended to have large impacts on the railway sector of those countries. Nevertheless, there are several other countries where the railways were reformed by different models and could improve the performance by certain measures such as inviting private investments, avoiding cross-subsidies among different divisions, liberalising the management of railways, and introducing intra-modal competition by an appropriate means. The railway sector is required to compete with other modes of transport, especially roads to attain environmental regions. When it comes to railway reform, it is essential for policy makers and experts to learn lessons from other countries' experiences. Based on the background given, this issue aims to understand the lessons from past railway reforms which the sector has experienced under different circumstances. Specifically, besides railway reforms in Europe with a focus on the UK, the issue discusses railway reforms in four other countries: Japan, USA, Russia, and Mexico.
The de- and re-regulation of the different network industries is an ongoing process at national a... more The de- and re-regulation of the different network industries is an ongoing process at national and global levels. As this process unfolds, ever new phenomena emerge. Yet, the question about the right mixture between market, economic, technical and social regulation remains wide open in all the network industries. Selected academics and practitioners have been invited to Florence on June 24th 2016 at the Annual Conference of the Florence School of Regulation to discuss the latest developments in the regulation of different network industries, namely transport, energy, telecoms and water distribution. The fifth edition of the Conference on the Regulation of Infrastructures had a special focus on digitalization and the use of data, which is a topic that cuts across all network industries and is highly debated. 10 papers have been presented in five round table sessions, each dedicated to one of the discussed industries. Some of the best papers presented at the 5th Conference on the Regulation of Infrastructures are presented in this issue of the Network Industries Quarterly.
Aligned with the goals of the Mexican National Development Plan, the state of Jalisco, one of the... more Aligned with the goals of the Mexican National Development Plan, the state of Jalisco, one of the 32 Federal Entities of Mexico, is rapidly developing. To maintain a proper management of public debt, the government of Jalisco has sought a viable instrument to promote economic growth by generating infrastructure that have a direct impact and that benefit the population.
In this paper, Mr Jorge Aristóteles Sandoval Díaz, Governor of the State of Jalisco, describes the significant adjustments that his government implemented aiming at restructuring state finances and strengthening austerity measures in public spending in order to allocate the resources to prioritizing actions for the benefit of the citizens. In particular, he focuses on the local government’s commitment to give new impetus to investment in infrastructural projects thanks to the sectoral Program called “Movilidad Sustentable” (Sustainable Mobility). This Program looks at the interaction of the public transport with the other actors of mobility (pedestrians, cyclists and car drivers) and sets a model for reorganization and improvement. More concretely, the plan for the “Extension and Modernization of Light Rail Line 1 of Guadalajara” is part of this Program and serves as the case study that Mr Sandoval Díaz uses to explain the idea that public funding can be a trigger for economic development, as long as it is responsibly administered.
The goal of this issue of the Network Industries Quarterly is to identify the conditions for the ... more The goal of this issue of the Network Industries Quarterly is to identify the conditions for the capital and money markets to increase their participation in the infrastructure financing process. Furthermore, the chapters illustrate examples of different forms of infrastructure financing. The first article by Jorge Alcaraz and Adriana Castro provides an overview on foreign direct investment as a source for infrastructure building, focusing on how governments from Latin American countries could improve the effects of these investments. The second article by Francisco Javier Valderrey and Miguel Ángel Montoya presents an overview of Chinese investments in Latin America and the challenges and consequences of this. In the third article Luis Arturo Bernal Ponce and Ricardo Pérez Navarro analyse the effect of public and private investment in infrastructure on economic growth in emerging countries, using Mexico from 2006 to 2016 as the case study. Brazil is instead the case study used by Joisa Dutra and Vivian Figer to shade lights on the future of electric utilities in Latin America. Finally, the article by Irina Alberro and Doreen Vorndran presents an innovative mechanism of financing social development: Social Impact Bonds have received attention across the world and in Mexico to address the challenges that youth faces.
This Special Issue of the Network Industries Quarterly focuses on Brazil. The goal is to provide ... more This Special Issue of the Network Industries Quarterly focuses on Brazil. The goal is to provide readers with an overview of the main achievements and current challenges faced by public utilities’ regulation in the country. Brazil is the seventh largest economy in the world in terms of GDP. As a consequence of the privatization program launched in the 1990s, a significant portion of public services was transferred to private investors under long-term concession agreements. This was the case of transmission and distribution of electricity, roads, railroads and telecommunications. However, despite privatization, the State remains an important player in sectors such as electricity and oil & gas, which increases the complexity of regulation considering an environment in which State-owned companies interact with private investors. This volume of Network Industries Quarterly consists of five papers that shall provide readers with a broad sense of what happened in terms of public utilities’ investment in Brazil in the last two decades and some trends for the future.
Local utilities represent one of the least studied subject among the disciplines focused on the t... more Local utilities represent one of the least studied subject among the disciplines focused on the transformations of network industries and, more generally, on the delivery of local public services (LPS). This deficit of attention is not due to a lack of relevance, as publicly owned corporations and institutional public-private partnership represent an important phenomenon in many European countries such as Germany, Italy, Austria, Switzerland and the Scandinavian countries, just to name a few. More likely, scholars overlooked public utilities because they constitute a difficult topic to deal with. There is no homogeneous legal framework at the European level and each Member State has its own tradition in regulating the utilities. Moreover, even within each national context, reliable databases on local utilities often do not exist and, in any case, it is very difficult to undertake cross-country comparisons.
The four articles in this special issue of the Network Industries Quarterly confirm the multifaceted nature of this subject and open the floor for future reflections on the role of local utilities and regulation of LPS in Europe. Citroni, Lippi and Profeti highlight the political nature of local utilities. At the crossroad between public ownership and market environment, local utilities stand out as complex agents that are influenced but also able to affect local regulation. In this light Di Giulio and Galanti describe the ongoing regionalization of local public services in Italy. The other two contributions focus on two classical features concerning the regulation of these kinds of markets. Ida and Talit provide insights on the building of a market for bus and coach lines in Israel as a driver of efficiency. Sokołowski explores the potential of local utilities as agents of policy effectiveness in improving energy security.
This groundbreaking book offers a critical and wide-ranging assessment of the global air transpor... more This groundbreaking book offers a critical and wide-ranging assessment of the global air transport liberalization process over the past 40 years. This compilation of world experts on air transport economics, policy, and regulation is timely and significant, considering that air transport is currently facing a series of new challenges due to technological changes, the emergence of new markets, and increased security concerns. The book initially explores liberalization within various geographical markets such as the United States, Australia, Ireland, the European Union, China, India, Latin America, and Africa. It expands upon this by addressing the main concerns that were initially leveled against air transport liberalization, including those involving safety, social services, market concentration, and the domination of hub airports as well as market instability. This analysis of air transport and its regulation will be of interest to aviation professionals, regulators, researchers, and students who are taking courses in air transport, economic regulation, and contemporary transport history.
The study analyses the disruption created by shared mobility in the funding of transport infrastr... more The study analyses the disruption created by shared mobility in the funding of transport infrastructure. While recognizing the benefits of shared mobility in terms of reduction of private car use, the study identifies that there might be short term negative effects on the revenues of long distance railway and coach operators. It also points out other potential risks, which include capturing the revenues through commissions charged by platforms mediating mass-transit services (Mobility as a Service), freeriding and lower tax contributions. The study makes recommendations to reduce these risks.
With ITS-Leeds and InnoZ GmbH, FSR-Transport team contributed to a major new report for the Europ... more With ITS-Leeds and InnoZ GmbH, FSR-Transport team contributed to a major new report for the European Parliament Transport and Tourism Committee on future transport trends and policies. In the section entitled “The role of regulation in preparing transport for the future” FSR-Transport particularly focused on the regulatory implications of the current challenges affecting different transport modes and the mobility system as a whole. The (more and more urban) European population is growing and ageing; mobile information and communication technologies are developing rapidly; global competition and the fight against climate change are pressing. These developments all have an impact on transport as a whole: mobility needs and patterns evolve; new transport services/systems emerge; transportation technologies aim to become more 'environmentally-efficient'. This transformation challenges the existing transport sector's structure and governance and calls for major changes in the regulatory framework.
In recent decades, network industries around the world have gone through periods of de- and re-re... more In recent decades, network industries around the world have gone through periods of de- and re-regulation. With vast amounts of sometimes conflicting research carried out into specific network industries, the time has come for a critical over-arching assessment of this entire industry in order to provide a platform of understanding to aid future research and practice. This comprehensive resource provides an orientation for academics, policy makers and managers as to the main economic, regulatory and commercial challenges in the network industries. The book is split into sections covering market, policy, regulation, management perspectives, whilst all of the key network industries are covered, including energy, transport, water and telecommunications. Overseen by world-class Editors and experts in the field, this inter-disciplinary resource is essential reading for students and researchers in international business, industrial economics and the industries.
The European railway sector has undergone profound and predominantly institutional changes over t... more The European railway sector has undergone profound and predominantly institutional changes over the past 20 years, due to the initiatives of the European Commission. This book constitutes a first systematic assessment and account of the recent transformations of the industry along a series of critical yet contentious issues such as competition, unbundling, regulation, access charging, standards and interoperability, and public–private partnerships. It also covers the main railways sectors including passenger transport, high speed and freight.
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The rapidly evolving Information and Communication Technologies (ICTs) have significantly challenged the traditionally stable landscape of infrastructure services provision. The new data layer over the traditional infrastructure and service layers is transforming network industries: online platforms create new indirect network effects, they allow new service providers to enter the market (prosumers, sharing economy providers, etc.), and they challenge the central role of traditional infrastructure managers/service providers as entities ensuring the coordination of the sectors.
Offering traditional and new services in an innovative way is a growing trend among public authorities, traditional providers as well as new private operators, prosumers and platforms. However, together with great opportunities, disruptive innovations also give rise to new regulatory challenges, especially when it comes to infrastructure financing and the coordination of operations.
This 7th Florence Conference on the Regulation of Infrastructures aims at taking stock of the major challenges infrastructure regulation is currently facing as a result of technology, indirect network effects, newly emerging network structures (decentralized networks, distributed networks, sharing economy), and new actors (prosumers, OTTs, platforms, etc).
Papers will be presented in different parallel sessions dedicated to the following infrastructure sectors: Communications and media; Energy and climate; Transport and mobility; Water distribution; Wastewater and waste management.
We encourage contributions that link different infrastructure sectors, especially in light of the ICTs. Contributions utilizing multidisciplinary, as well as interdisciplinary approaches to regulation, are welcome. Papers linking academia and practice, as well as policy research papers are particularly encouraged.
The Conference is intended for academics such as PhD students, PostDocs and Assistant/associate/full Professors as well as academically minded practitioners.
However, together with great opportunities, disruptive innovations also give rise to new regulatory challenges especially on infrastructure financing and management of the future " smart cities ".
This 6th Florence Conference on the Regulation of Infrastructures aims at taking stock of the major challenges infrastructure regulation is currently facing at the local level. Papers will be presented in different parallel sessions dedicated to the following infrastructure sectors: Communications and media; Energy and Climate; Transport; Water distribution; Wastewater and waste management.
We encourage contributions that link technology and institutions in more than one infrastructure sector. Contributions utilizing multidisciplinary as well as interdisciplinary approaches to regulation are welcome. Papers linking academia and practice, as well as policy research papers are particularly encouraged.
The conference is intended for academics such as PhD students, PostDocs and Assistant/associate/full Professors as well as academically minded practitioners.
The de- and re-regulation of the different network industries is an ongoing process at national and global levels. As this process unfolds, ever new phenomena emerge. Yet, the question about the right mixture between market, economic, technical and social regulation remains wide open in all the network industries.
The question becomes even more challenging when looking at recent infrastructure development as triggered by their pervasive digitalization. Not only are the different infrastructures transformed by their digitalization – e.g., digital transport, smart energy, etc. – calling for new approaches to regulating them, but moreover does digitalization become a phenomenon in its own right. The European Commission actually sees digitalization as a means to accelerate integration, to tear down regulatory walls and to move from 28 national markets to a single one. Consequently, digitalization and especially its implications in terms of privacy and security also require regulatory attention.
The question becomes even more challenging when looking at infrastructure development in the different regions of the world. While most of the European countries have a long lasting story of national regulation and have then started to put considerable effort in harmonising their regulation at the EU level, outside of the EU, regulation of different network industries has followed different paths.
This Florence School special issue gathers contributions to the 4th Florence Conference on the Regulation of Infrastructures and aims at taking stock of the major challenges infrastructure regulation is currently facing all over the world, with a special focus also on emerging countries. Due to impossibility for many to participate in the Conference, papers that have not been presented at the Conference will also be considered for publication.
Areas of interest include, but are not limited to: 1) Issues relevant in the main infrastructure sectors, notably telecommunications, postal services, electricity, gas, railways, air transport, urban public transport, as well as water distribution and sanitation; 2) Issues that are tackled from various disciplinary approaches, notably engineering, economics, law and political science; interdisciplinary approaches are particularly encouraged; 3) Case studies that are linking an academic approach to practical relevance; policy relevant research papers are particularly welcomed; 4) We are especially looking for papers that link technology and institutions in developing and emerging countries.
Papers by FSR Transport
However, this way of doing things cannot continue into the future, as the different infrastructure sectors are converging. This is, first, because of the technological and economic dynamics that has been triggered by liberalisation, and which has led to new technologies, often at the interface of the different sectors (e.g., power-to-gas), along with corresponding cross-sectoral business strategies. Convergence also results from recent developments of digital networks (and in particular of the fifth generation of wireless technologies, the 5G) which increasingly act as driver of convergence between sectors, leading to cross-sectoral and much more integrated infrastructures services (e.g., “Mobility-as-a-Service” or MaaS). The take-off of the Internet of Things (IoT) based on 5G networks, which is addressed as the next Industrial Revolution, is expected to accelerate this trend. Finally, climate and other ecological challenges force a direct comparison among different sectors, such as in the case of externalities caused by energy generation (by renewables or by fossil fuels) or by the different transport models. For all three reasons, a more convergent view of the different network industries is rapidly emerging … but will it translate into converging regulation or even into the regulation of convergence? Such is the topic of the 9th Florence Conference on the Regulation of Infrastructures.
More precisely, we look for contributions that link different infrastructure sectors, especially in terms of regulating interfaces between the different sectors, as well as regulating more integrated and converging sectors. Contributions utilising multidisciplinary as well as interdisciplinary approaches to regulation are welcome. Papers linking academia and practice, as well as policy research papers are particularly encouraged.
The road infrastructure was traditionally the central element in the planning and management process of road transport. The focus is changing, and the service and users are now at the very center of the management process. Policy makers, regulators, infrastructure managers and road operators can extract significant benefits from the digitalisation, but to reap those full benefits, it will be necessary to have a clear view on the path ahead.
This special issue of the Network Industries Quarterly (NIQ) presents a set of five papers, developed by Researchers of Instituto Superior Técnico – University of Lisbon (Portugal), that provide a holistic perspective over the challenges, impacts, and risks of digitalisation in the road sector.
Neves and Velez developed a paper on the expected impacts of autonomous vehicles on road infrastructures of old urban centers.
Baptista and Duarte look into the trends of vehicle electrification and its challenges for infrastructure.
Sousa and Meireles analyse digitalisation of road infrastructure from a risk management perspective, particularly the possibility of implementing of a holistic quantitative risk management approach, allowed by the growing digitalisation.
Trindade and Almeida offer an analysis of digitalisation on the value realisation from infrastructure assets in asset-intensive organisations
Finally, Moura looks into digital platforms, particularly Mobility as a Service approaches.
The de- and re-regulation of the different network industries is an on-going process at both the national and global levels. As this process unfolds, ever new phenomena emerge, necessitating a constant reassessment of the content and objectives of regulation.
Following the 7th Conference on Regulation of Infrastructures which took place on June 21 and 22, 2018 with a particular focus on the regulatory challenges facing network industries in the transport, telecoms, water and energy sectors, four papers were selected for this publication due to their topical relevance.
Frieden examines how Internet ventures operate as intermediaries serving both upstream sources of content and applications, as well as downstream consumers, and considers how governments can respond to the onset of price and quality of service discrimination within the Internet ecosystem.
Knieps looks at ICT innovations as the key drivers for a paradigm shift from traditional intramodal transportation markets to intermodal shared mobility markets. He identifies the changing necessities of regulations regarding market entry, public subsidies, and technical regulations, and presents the potentials of pilot projects, as well as the impact of shared mobility on congestion and pollution.
Rossotto et al. analyse the existing literature on digital platforms and distinguish four aspects, which policy makers should keep in mind, working on appropriate policy frameworks for digital platforms in emerging markets. These four aspects are: definition of multisided-platforms; emerging business models; technology and behavioral enablers; platform competitive dynamics.
Finally, Vanrykel, Ernst and Bourgeois look at the platform Share&Charge, and present its functioning and potential, before assessing the tax treatment of operations involved in the use of the platform.
Regulation for technology developments in artificial intelligence and robotics are commonly seen as one of the important yet structurally neglected fields regarding the human perspective on increasing automatization. This was highlighted in 2017 by the European Parliament report and a public consultation, indicating that a vast majority of citizens in Europe is regarding those developments as positive innovation fields but where further safeguards and regulations are needed, see the EP Resolution on Civil Law Rules on Robotics, 2015/2103(INL).
This issue is connected to an innovation workshop that took place on February 26 2018 at the Florence School of Regulation and directed at discussing the state of the art within the field of transportation, logistics and supply chain management. Furthermore, an evaluation regarding possible actions like regulation, agency- or industry-based approaches for establishing safeguards towards effective but risk-mitigating settings for this sector is aimed for.
Initial contributions collected here are directed at providing an interdisciplinary overview regarding the perspectives of industry and logistics actors, researchers in the economic, computer sciences, law and sociology domains as well as other interested parties from the field of political actors and associations. This shall enable the start of an open discussion what sorts of regulation are necessary in order to secure human trust and motivation in AI and robotics developments without placing too much of a burden to the economic development in the transportation, logistics and supply chain sector.
Utility companies play an important role in the realization of the Swiss energy transition, but are also facing numerous strategic challenges as a consequence of a rapidly changing playing field. The commitments necessary to transition towards a more sustainable energy system are not necessarily aligned with the current operations of local utility companies. For example, the lack of incentives for energy efficiency programs, market opening, smart grids and renewable energy has utilities looking for new business models.
This issue of Network Industries Quarterly (NIQ) is linked to the Certificate of Advanced Studies (CAS) in Governing Energy Transitions, a continuing education program organized by the Chair Management of Network Industries at the École Polytechnique Fédérale de Lausanne (EPFL). The program has a strong practical component, embedded in an academic framework of multi-level governance. Participants of the program were invited to contribute to this issue, sharing their insights on the strategic challenges of local utility companies in the Swiss energy transition.
The following are the themes included in this issue of NIQ:
• An overview of strategic responses of urban utility companies to the energy transition: comparing Swiss and German utilities.
• Implementation of a local demand-side management program in Switzerland.
• An international perspective on demand-side management programs, and policy-recommendations for a Swiss governance model.
• A broader identification of new business opportunities for utility companies, arising from the ongoing energy transition.
The unfolding of water regulation, however, reveals a wide and complex kaleidoscope of affairs, which involve different actors, dimensions and spatial scales. Surface and groundwater provides another set of challenges in discussing water regulation. More particularly, transboundary waters – within and between countries – impose, in addition to technical challenges, the need for diplomatic skills in the handling of their issue and the proposal of solutions.
This issue of Network Industries Quarterly (NIQ) is linked to the Public Policy and Water Regulation International Forum, which was organized by Tecnologico de Monterrey, the Water Center for Latin America and the Caribbean, and Cervecería Cuauhtémoc Moctezuma – Heineken México in May 2017. The Forum had an academic framework plus perspectives from practitioners working in the field of water regulation in Latin America. Other selected contributors were invited to complete this issue with its focus on the Americas. The papers on Canada and Texas are a reflection of this inclusion.
The following are the themes included in this issue of NIQ:
• Science, policy and management of groundwater in Canada;
• Groundwater regulation in Texas;
• Regulation of water and sanitation services in Latin America;
• Incorporation of natural infrastructure in water management in Latin America;
• The water guarantee fee in Mexico.
Following the 6th Conference on the Regulation of Infrastructures which took place on 16 June 2017 with a particular focus on the regulatory challenges facing smart cities in the transport, telecoms, water and energy sectors, four papers were selected for this publication due to their topical relevance. Olivera Cruz and Miranda Sarmento address the regulation and financing of smart cities through Public Private Partnerships (PPPs), and how that financing can be put to use to make infrastructure smarter as quickly as possible through an in-depth analysis of the various PPP models used to date, and possible improvements. Bock and Hosse present a digital model in development for the planning, tracking and analysis of passively generated mobility data for regulators. The model aims to facilitate the use of intelligently managed renewables by providing easy alternatives for the car to transport users. Marlot and Brunel look at Mobility as a Service (MaaS) and how regulation can incentivise consumers to choose shared mobility over the private car. Finally, Knieps provides an overview of the network economics of smart, sustainable cities, with a focus on the potentials for sharing activities and prosumage, as well as smart congestion management.
In this issue, we look into different aspects of the recent Turkish experience. In the first article, Özbuğday and Alma discuss distribution/retail unbundling in the Turkish electricity markets. The paper draws attention to the increasing issues of competition policy as a result of privatizations in the industry. The second article by Şenerdem and Akkemik brings forward a fundamental issue: the lack of data and the difficulty of constructing social accounting matrices. The authors introduce a social accounting matrix (SAM) with a special emphasis on electricity for the year of 2010. They put first steps forward of developing a general empirical perspective on the nature of electricity markets. The lack of reliable data has become a key issue in understanding the relative success of the reform efforts. Significantly, changes in efficiency are very hard to measure. These difficulties create opportunities for political interventions. The third paper by Oğuz and Göksal addresses recent policy shifts in the Turkish electricity markets. Focusing on the existing distribution tariffs, the paper emphasizes the need to improve the regulatory framework. In the last paper, Benli and Benli look into a major hurdle in the implementation of the regulatory reform; namely, how to deal with illegal use and electricity theft from a legal perspective. By applying the Coase theorem, they argue that electricity theft should be seen as a social problem rather than a contracting issue.
After World War II, ex-Yugoslavia was a unique example of self-management, and a specific system of governance and societal ownership of companies, including public utilities. In the early 1990s, Yugoslav disintegration and democratization coincided with economic transformation from a socialist market economy to a market economy. However, legacies of the past economic system are still present in some aspects, albeit in some countries more than others, and influence the process of liberalization of public utilities. This process was urged by joining the EU or is still urged by EU accession requirements. Most of the impetus for liberalization comes as a response to low investments in infrastructure, as most of these countries have reached high debt levels and therefore a private finance infrastructure seems to be a solution. The market liberalization agenda began to come to the front, and regulatory reform urged creation of independent regulatory agencies for state-wide public utilities such as electricity and gas markets. On the other side, municipal (communal) services are mainly provided by local authorities and public operators. Liberalization agenda in many of these countries presupposes privatization of public undertakings, contracting out or alternatives to privatization such as Public-Private Partnerships (PPPs) and concessions, with special attention given to the general legal framework for PPPs and concessions in these countries.
The following are some of the issues the country contributions have strived to address:
• The scope and characteristics of public undertakings providing utilities and the character of public utilities owned or regulated by local self-government units;
• PPPs and concessions as an “alternative” to full privatization: basic overview of active projects and reference to the legal and institutional framework for PPPs and concessions;
• Liberalization agenda and the main issues in regulating local public utilities (communal services);
• The character of regulatory powers and challenges posed to municipalities in regulating communal services.
Although all country contributions have a similar structure, the level of detail may differ, notably due to the existing level of development of the normative and institutional framework in a respective country and different experiences in private sector involvement. After presenting the institutional and normative setting, in the concluding remarks authors have identified the main pitfalls and prospects for change. Although differences exist, it seems that the volatile political situation in many countries of ex-Yugoslavia and the fragile political will to perform necessary reforms of public (including local) administration and public sector of the economy are the most important deficiencies.
Therefore, it is necessary to adjust legal and regulatory frameworks and create a stable economic environment. Local administration and business communities have to understand the concept of PPPs and private finance initiatives, while policymakers and local authorities must develop adequate plans and facilitatory structures for potential PPP projects, including capacities to initiate projects and perform cost-benefit analysis for the potential projects.
The rapidly evolving Information and Communication Technologies (ICTs) have significantly challenged the traditionally stable landscape of infrastructure services provision. The new data layer over the traditional infrastructure and service layers is transforming network industries: online platforms create new indirect network effects, they allow new service providers to enter the market (prosumers, sharing economy providers, etc.), and they challenge the central role of traditional infrastructure managers/service providers as entities ensuring the coordination of the sectors.
Offering traditional and new services in an innovative way is a growing trend among public authorities, traditional providers as well as new private operators, prosumers and platforms. However, together with great opportunities, disruptive innovations also give rise to new regulatory challenges, especially when it comes to infrastructure financing and the coordination of operations.
This 7th Florence Conference on the Regulation of Infrastructures aims at taking stock of the major challenges infrastructure regulation is currently facing as a result of technology, indirect network effects, newly emerging network structures (decentralized networks, distributed networks, sharing economy), and new actors (prosumers, OTTs, platforms, etc).
Papers will be presented in different parallel sessions dedicated to the following infrastructure sectors: Communications and media; Energy and climate; Transport and mobility; Water distribution; Wastewater and waste management.
We encourage contributions that link different infrastructure sectors, especially in light of the ICTs. Contributions utilizing multidisciplinary, as well as interdisciplinary approaches to regulation, are welcome. Papers linking academia and practice, as well as policy research papers are particularly encouraged.
The Conference is intended for academics such as PhD students, PostDocs and Assistant/associate/full Professors as well as academically minded practitioners.
However, together with great opportunities, disruptive innovations also give rise to new regulatory challenges especially on infrastructure financing and management of the future " smart cities ".
This 6th Florence Conference on the Regulation of Infrastructures aims at taking stock of the major challenges infrastructure regulation is currently facing at the local level. Papers will be presented in different parallel sessions dedicated to the following infrastructure sectors: Communications and media; Energy and Climate; Transport; Water distribution; Wastewater and waste management.
We encourage contributions that link technology and institutions in more than one infrastructure sector. Contributions utilizing multidisciplinary as well as interdisciplinary approaches to regulation are welcome. Papers linking academia and practice, as well as policy research papers are particularly encouraged.
The conference is intended for academics such as PhD students, PostDocs and Assistant/associate/full Professors as well as academically minded practitioners.
The de- and re-regulation of the different network industries is an ongoing process at national and global levels. As this process unfolds, ever new phenomena emerge. Yet, the question about the right mixture between market, economic, technical and social regulation remains wide open in all the network industries.
The question becomes even more challenging when looking at recent infrastructure development as triggered by their pervasive digitalization. Not only are the different infrastructures transformed by their digitalization – e.g., digital transport, smart energy, etc. – calling for new approaches to regulating them, but moreover does digitalization become a phenomenon in its own right. The European Commission actually sees digitalization as a means to accelerate integration, to tear down regulatory walls and to move from 28 national markets to a single one. Consequently, digitalization and especially its implications in terms of privacy and security also require regulatory attention.
The question becomes even more challenging when looking at infrastructure development in the different regions of the world. While most of the European countries have a long lasting story of national regulation and have then started to put considerable effort in harmonising their regulation at the EU level, outside of the EU, regulation of different network industries has followed different paths.
This Florence School special issue gathers contributions to the 4th Florence Conference on the Regulation of Infrastructures and aims at taking stock of the major challenges infrastructure regulation is currently facing all over the world, with a special focus also on emerging countries. Due to impossibility for many to participate in the Conference, papers that have not been presented at the Conference will also be considered for publication.
Areas of interest include, but are not limited to: 1) Issues relevant in the main infrastructure sectors, notably telecommunications, postal services, electricity, gas, railways, air transport, urban public transport, as well as water distribution and sanitation; 2) Issues that are tackled from various disciplinary approaches, notably engineering, economics, law and political science; interdisciplinary approaches are particularly encouraged; 3) Case studies that are linking an academic approach to practical relevance; policy relevant research papers are particularly welcomed; 4) We are especially looking for papers that link technology and institutions in developing and emerging countries.
However, this way of doing things cannot continue into the future, as the different infrastructure sectors are converging. This is, first, because of the technological and economic dynamics that has been triggered by liberalisation, and which has led to new technologies, often at the interface of the different sectors (e.g., power-to-gas), along with corresponding cross-sectoral business strategies. Convergence also results from recent developments of digital networks (and in particular of the fifth generation of wireless technologies, the 5G) which increasingly act as driver of convergence between sectors, leading to cross-sectoral and much more integrated infrastructures services (e.g., “Mobility-as-a-Service” or MaaS). The take-off of the Internet of Things (IoT) based on 5G networks, which is addressed as the next Industrial Revolution, is expected to accelerate this trend. Finally, climate and other ecological challenges force a direct comparison among different sectors, such as in the case of externalities caused by energy generation (by renewables or by fossil fuels) or by the different transport models. For all three reasons, a more convergent view of the different network industries is rapidly emerging … but will it translate into converging regulation or even into the regulation of convergence? Such is the topic of the 9th Florence Conference on the Regulation of Infrastructures.
More precisely, we look for contributions that link different infrastructure sectors, especially in terms of regulating interfaces between the different sectors, as well as regulating more integrated and converging sectors. Contributions utilising multidisciplinary as well as interdisciplinary approaches to regulation are welcome. Papers linking academia and practice, as well as policy research papers are particularly encouraged.
The road infrastructure was traditionally the central element in the planning and management process of road transport. The focus is changing, and the service and users are now at the very center of the management process. Policy makers, regulators, infrastructure managers and road operators can extract significant benefits from the digitalisation, but to reap those full benefits, it will be necessary to have a clear view on the path ahead.
This special issue of the Network Industries Quarterly (NIQ) presents a set of five papers, developed by Researchers of Instituto Superior Técnico – University of Lisbon (Portugal), that provide a holistic perspective over the challenges, impacts, and risks of digitalisation in the road sector.
Neves and Velez developed a paper on the expected impacts of autonomous vehicles on road infrastructures of old urban centers.
Baptista and Duarte look into the trends of vehicle electrification and its challenges for infrastructure.
Sousa and Meireles analyse digitalisation of road infrastructure from a risk management perspective, particularly the possibility of implementing of a holistic quantitative risk management approach, allowed by the growing digitalisation.
Trindade and Almeida offer an analysis of digitalisation on the value realisation from infrastructure assets in asset-intensive organisations
Finally, Moura looks into digital platforms, particularly Mobility as a Service approaches.
The de- and re-regulation of the different network industries is an on-going process at both the national and global levels. As this process unfolds, ever new phenomena emerge, necessitating a constant reassessment of the content and objectives of regulation.
Following the 7th Conference on Regulation of Infrastructures which took place on June 21 and 22, 2018 with a particular focus on the regulatory challenges facing network industries in the transport, telecoms, water and energy sectors, four papers were selected for this publication due to their topical relevance.
Frieden examines how Internet ventures operate as intermediaries serving both upstream sources of content and applications, as well as downstream consumers, and considers how governments can respond to the onset of price and quality of service discrimination within the Internet ecosystem.
Knieps looks at ICT innovations as the key drivers for a paradigm shift from traditional intramodal transportation markets to intermodal shared mobility markets. He identifies the changing necessities of regulations regarding market entry, public subsidies, and technical regulations, and presents the potentials of pilot projects, as well as the impact of shared mobility on congestion and pollution.
Rossotto et al. analyse the existing literature on digital platforms and distinguish four aspects, which policy makers should keep in mind, working on appropriate policy frameworks for digital platforms in emerging markets. These four aspects are: definition of multisided-platforms; emerging business models; technology and behavioral enablers; platform competitive dynamics.
Finally, Vanrykel, Ernst and Bourgeois look at the platform Share&Charge, and present its functioning and potential, before assessing the tax treatment of operations involved in the use of the platform.
Regulation for technology developments in artificial intelligence and robotics are commonly seen as one of the important yet structurally neglected fields regarding the human perspective on increasing automatization. This was highlighted in 2017 by the European Parliament report and a public consultation, indicating that a vast majority of citizens in Europe is regarding those developments as positive innovation fields but where further safeguards and regulations are needed, see the EP Resolution on Civil Law Rules on Robotics, 2015/2103(INL).
This issue is connected to an innovation workshop that took place on February 26 2018 at the Florence School of Regulation and directed at discussing the state of the art within the field of transportation, logistics and supply chain management. Furthermore, an evaluation regarding possible actions like regulation, agency- or industry-based approaches for establishing safeguards towards effective but risk-mitigating settings for this sector is aimed for.
Initial contributions collected here are directed at providing an interdisciplinary overview regarding the perspectives of industry and logistics actors, researchers in the economic, computer sciences, law and sociology domains as well as other interested parties from the field of political actors and associations. This shall enable the start of an open discussion what sorts of regulation are necessary in order to secure human trust and motivation in AI and robotics developments without placing too much of a burden to the economic development in the transportation, logistics and supply chain sector.
Utility companies play an important role in the realization of the Swiss energy transition, but are also facing numerous strategic challenges as a consequence of a rapidly changing playing field. The commitments necessary to transition towards a more sustainable energy system are not necessarily aligned with the current operations of local utility companies. For example, the lack of incentives for energy efficiency programs, market opening, smart grids and renewable energy has utilities looking for new business models.
This issue of Network Industries Quarterly (NIQ) is linked to the Certificate of Advanced Studies (CAS) in Governing Energy Transitions, a continuing education program organized by the Chair Management of Network Industries at the École Polytechnique Fédérale de Lausanne (EPFL). The program has a strong practical component, embedded in an academic framework of multi-level governance. Participants of the program were invited to contribute to this issue, sharing their insights on the strategic challenges of local utility companies in the Swiss energy transition.
The following are the themes included in this issue of NIQ:
• An overview of strategic responses of urban utility companies to the energy transition: comparing Swiss and German utilities.
• Implementation of a local demand-side management program in Switzerland.
• An international perspective on demand-side management programs, and policy-recommendations for a Swiss governance model.
• A broader identification of new business opportunities for utility companies, arising from the ongoing energy transition.
The unfolding of water regulation, however, reveals a wide and complex kaleidoscope of affairs, which involve different actors, dimensions and spatial scales. Surface and groundwater provides another set of challenges in discussing water regulation. More particularly, transboundary waters – within and between countries – impose, in addition to technical challenges, the need for diplomatic skills in the handling of their issue and the proposal of solutions.
This issue of Network Industries Quarterly (NIQ) is linked to the Public Policy and Water Regulation International Forum, which was organized by Tecnologico de Monterrey, the Water Center for Latin America and the Caribbean, and Cervecería Cuauhtémoc Moctezuma – Heineken México in May 2017. The Forum had an academic framework plus perspectives from practitioners working in the field of water regulation in Latin America. Other selected contributors were invited to complete this issue with its focus on the Americas. The papers on Canada and Texas are a reflection of this inclusion.
The following are the themes included in this issue of NIQ:
• Science, policy and management of groundwater in Canada;
• Groundwater regulation in Texas;
• Regulation of water and sanitation services in Latin America;
• Incorporation of natural infrastructure in water management in Latin America;
• The water guarantee fee in Mexico.
Following the 6th Conference on the Regulation of Infrastructures which took place on 16 June 2017 with a particular focus on the regulatory challenges facing smart cities in the transport, telecoms, water and energy sectors, four papers were selected for this publication due to their topical relevance. Olivera Cruz and Miranda Sarmento address the regulation and financing of smart cities through Public Private Partnerships (PPPs), and how that financing can be put to use to make infrastructure smarter as quickly as possible through an in-depth analysis of the various PPP models used to date, and possible improvements. Bock and Hosse present a digital model in development for the planning, tracking and analysis of passively generated mobility data for regulators. The model aims to facilitate the use of intelligently managed renewables by providing easy alternatives for the car to transport users. Marlot and Brunel look at Mobility as a Service (MaaS) and how regulation can incentivise consumers to choose shared mobility over the private car. Finally, Knieps provides an overview of the network economics of smart, sustainable cities, with a focus on the potentials for sharing activities and prosumage, as well as smart congestion management.
In this issue, we look into different aspects of the recent Turkish experience. In the first article, Özbuğday and Alma discuss distribution/retail unbundling in the Turkish electricity markets. The paper draws attention to the increasing issues of competition policy as a result of privatizations in the industry. The second article by Şenerdem and Akkemik brings forward a fundamental issue: the lack of data and the difficulty of constructing social accounting matrices. The authors introduce a social accounting matrix (SAM) with a special emphasis on electricity for the year of 2010. They put first steps forward of developing a general empirical perspective on the nature of electricity markets. The lack of reliable data has become a key issue in understanding the relative success of the reform efforts. Significantly, changes in efficiency are very hard to measure. These difficulties create opportunities for political interventions. The third paper by Oğuz and Göksal addresses recent policy shifts in the Turkish electricity markets. Focusing on the existing distribution tariffs, the paper emphasizes the need to improve the regulatory framework. In the last paper, Benli and Benli look into a major hurdle in the implementation of the regulatory reform; namely, how to deal with illegal use and electricity theft from a legal perspective. By applying the Coase theorem, they argue that electricity theft should be seen as a social problem rather than a contracting issue.
After World War II, ex-Yugoslavia was a unique example of self-management, and a specific system of governance and societal ownership of companies, including public utilities. In the early 1990s, Yugoslav disintegration and democratization coincided with economic transformation from a socialist market economy to a market economy. However, legacies of the past economic system are still present in some aspects, albeit in some countries more than others, and influence the process of liberalization of public utilities. This process was urged by joining the EU or is still urged by EU accession requirements. Most of the impetus for liberalization comes as a response to low investments in infrastructure, as most of these countries have reached high debt levels and therefore a private finance infrastructure seems to be a solution. The market liberalization agenda began to come to the front, and regulatory reform urged creation of independent regulatory agencies for state-wide public utilities such as electricity and gas markets. On the other side, municipal (communal) services are mainly provided by local authorities and public operators. Liberalization agenda in many of these countries presupposes privatization of public undertakings, contracting out or alternatives to privatization such as Public-Private Partnerships (PPPs) and concessions, with special attention given to the general legal framework for PPPs and concessions in these countries.
The following are some of the issues the country contributions have strived to address:
• The scope and characteristics of public undertakings providing utilities and the character of public utilities owned or regulated by local self-government units;
• PPPs and concessions as an “alternative” to full privatization: basic overview of active projects and reference to the legal and institutional framework for PPPs and concessions;
• Liberalization agenda and the main issues in regulating local public utilities (communal services);
• The character of regulatory powers and challenges posed to municipalities in regulating communal services.
Although all country contributions have a similar structure, the level of detail may differ, notably due to the existing level of development of the normative and institutional framework in a respective country and different experiences in private sector involvement. After presenting the institutional and normative setting, in the concluding remarks authors have identified the main pitfalls and prospects for change. Although differences exist, it seems that the volatile political situation in many countries of ex-Yugoslavia and the fragile political will to perform necessary reforms of public (including local) administration and public sector of the economy are the most important deficiencies.
Therefore, it is necessary to adjust legal and regulatory frameworks and create a stable economic environment. Local administration and business communities have to understand the concept of PPPs and private finance initiatives, while policymakers and local authorities must develop adequate plans and facilitatory structures for potential PPP projects, including capacities to initiate projects and perform cost-benefit analysis for the potential projects.
In this paper, Mr Jorge Aristóteles Sandoval Díaz, Governor of the State of Jalisco, describes the significant adjustments that his government implemented aiming at restructuring state finances and strengthening austerity measures in public spending in order to allocate the resources to prioritizing actions for the benefit of the citizens. In particular, he focuses on the local government’s commitment to give new impetus to investment in infrastructural projects thanks to the sectoral Program called “Movilidad Sustentable” (Sustainable Mobility). This Program looks at the interaction of the public transport with the other actors of mobility (pedestrians, cyclists and car drivers) and sets a model for reorganization and improvement. More concretely, the plan for the “Extension and Modernization of Light Rail Line 1 of Guadalajara” is part of this Program and serves as the case study that Mr Sandoval Díaz uses to explain the idea that public funding can be a trigger for economic development, as long as it is responsibly administered.
The four articles in this special issue of the Network Industries Quarterly confirm the multifaceted nature of this subject and open the floor for future reflections on the role of local utilities and regulation of LPS in Europe. Citroni, Lippi and Profeti highlight the political nature of local utilities. At the crossroad between public ownership and market environment, local utilities stand out as complex agents that are influenced but also able to affect local regulation. In this light Di Giulio and Galanti describe the ongoing regionalization of local public services in Italy. The other two contributions focus on two classical features concerning the regulation of these kinds of markets. Ida and Talit provide insights on the building of a market for bus and coach lines in Israel as a driver of efficiency. Sokołowski explores the potential of local utilities as agents of policy effectiveness in improving energy security.
The book initially explores liberalization within various geographical markets such as the United States, Australia, Ireland, the European Union, China, India, Latin America, and Africa. It expands upon this by addressing the main concerns that were initially leveled against air transport liberalization, including those involving safety, social services, market concentration, and the domination of hub airports as well as market instability.
This analysis of air transport and its regulation will be of interest to aviation professionals, regulators, researchers, and students who are taking courses in air transport, economic regulation, and contemporary transport history.
In the section entitled “The role of regulation in preparing transport for the future” FSR-Transport particularly focused on the regulatory implications of the current challenges affecting different transport modes and the mobility system as a whole. The (more and more urban) European population is growing and ageing; mobile information and communication technologies are developing rapidly; global competition and the fight against climate change are pressing. These developments all have an impact on transport as a whole: mobility needs and patterns evolve; new transport services/systems emerge; transportation technologies aim to become more 'environmentally-efficient'.
This transformation challenges the existing transport sector's structure and governance and calls for major changes in the regulatory framework.