“When supply travels far beyond demand: Institutional and regulatory causes of oversupply in Spain’s transport infrastructure”
AbstractSpain’s transport infrastructure policy has become a paradigmatic case of oversupply and of mismatch with demand. The massive expansion of the country’s transport infrastructure over the last decade has not been a response to demand bottlenecks or previously identified needs. For this reason, the intensity of use today on all interurban modes of transport in Spain falls well below that of other EU countries. This paper analyzes the institutional and regulatory factors that have permitted this policy, allowing us to draw lessons from the Spanish case that should help other countries avoid the pitfalls and shortcomings of Spanish policy. Based on our analysis, we also discuss policy remedies and suggest reforms in different regulatory areas, which could help improve the performance of Spain’s infrastructure policy.
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Bibliographic InfoPaper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 201312.
Length: 29 pages
Date of creation: Jun 2013
Date of revision: Jun 2013
Infrastructure; Overcapacity; Regulation; Spain. JEL classification: H54; L91; L98; R41; R42; R48;
Find related papers by JEL classification:
- Spa - - - - - -
- JEL - Labor and Demographic Economics - - - - -
- cla - - - - - -
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
- L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
- L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
- R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
- R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-09 (All new papers)
- NEP-EUR-2013-06-09 (Microeconomic European Issues)
- NEP-REG-2013-06-09 (Regulation)
- NEP-TRE-2013-06-09 (Transport Economics)
- NEP-URE-2013-06-09 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Germà Bel & Xavier Fageda, 2005.
"Preventing competition because of “solidarity”: Rhetoric and reality of airport investments in Spain,"
- Germa Bel & Xavier Fageda, 2009. "Preventing competition because of 'solidarity': rhetoric and reality of airport investments in Spain," Applied Economics, Taylor & Francis Journals, vol. 41(22), pages 2853-2865.
- Daniel Albalate & Germà Bel & Xavier Fageda, 2012. "Beyond the efficiency-equity dilemma: Centralization as a determinant of government investment in infrastructure," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 599-615, 08.
- Germá Bel & Xavier Fageda, 2011. "La reforma del modelo de gestión de aeropuertos en España: ¿Gestión conjunta o individual?," Hacienda Pública Española, IEF, vol. 196(1), pages 109-130, january.
- Castells, Antoni & Sole-Olle, Albert, 2005. "The regional allocation of infrastructure investment: The role of equity, efficiency and political factors," European Economic Review, Elsevier, vol. 49(5), pages 1165-1205, July.
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