The investment challenge: how to fund the infrastructure of the future
Economies are grappling with how to fund the infrastructure of the future: from energy and transport to data and payments.
But while investing in infrastructure has always been an economic challenge, for many governments – and the private sector too – that challenge feels more difficult than ever.
Governments are rethinking industrial strategies. Regulators are refining approaches. But one question runs through it all: how do we design the right policies to make infrastructure investment a success? After all, sustainable development relies on it.
In this edition of Frontier Focus:
- Paul Johnson, our Senior Advisor and former Director of the IFS, explores the UK’s enduring investment challenge.
- Our economists examine the incentives that drive investment in different sectors: from the telecoms networks being expanded in the UK, to the long-term public funding powering innovation in offshore renewables.
- We look at how economics incentives are as vital as technology to the future of digital payments.
- And as the world pursues net zero, our piece on merger control argues that competition authorities should be giving more weight to environmental benefits.
Team thoughts
Decisions over when, where and how much to invest are inherently difficult. Returns are uncertain and often take years to materialise.
Senior Advisor, Public Policy
When green benefits from a merger are verifiable and specific to the merger, society may be better off if it were cleared, even if it results in higher prices
Principal, Competition
The shift towards a lighter touch, investor-friendly approach to regulation appears to have helped the UK make big strides in digital infrastructure.
Executive Director, Telco
