The independence of regulatory authorities

This chapter offers a theoretical and empirical assessment of the distinctive feature of regulatory agencies, namely their independence. First, we discuss the formal and informal aspects of regulatory independence, their conceptualization, and their operationalization. Second, we present empirical research explaining the variation of formal independence across countries and sectors. We also point out that formal independence is neither a necessary nor a sufficient condition for regulators ’ de facto independence from political decision-makers and from the regulated industries. We conclude by highlighting the persistent relevance of regulatory independence for the study of the ongoing processes of re-regulation and agenci-fication.