Utilities Policy

In this paper, we discuss the relationship between infrastructure regulation and investment in light of the emerging “security of supply ” debate. We approach the subject by surveying the literature of the past two decades, especially examining the interactions among restructuring, regulation, and investment. The empirical section of the paper relies on case studies of the relationship between the regulatory framework for the US natural gas sector and the development of investment in liquefied natural gas (LNG) terminals, interstate pipelines, and storage facilities. We find that there is little reason for concern about infrastructure investments, resource adequacy, and supply security in the US natural gas sector. Other countries or regions, such as continental Europe, Japan an