INDUSTRY SECTOR

TRANSPORT

Economic regulation has an important role in ensuring that efficient investment decisions are made in the transport sector, and that competition develops effectively. Economists participate in debates between companies and their regulators, and help operate and develop the regulatory framework. Economic analysis is also necessary to assess the costs and benefits of projects and of proposed regulatory changes.

Europe Economics specialises in regulatory and competition issues, including impact assessment, infrastructure access and pricing, franchise design, asset finance markets, regulatory reform and the introduction of competition.

Europe Economics has advised the rail regulatory authorities in Great Britain on a range of issues, including the structure of charges, potential for efficiency improvement in infrastructure maintenance, the design of arrangements to enhance the flexibility of track access rights, the framework for defining, pricing and enforcing infrastructure enhancement projects, the public-interest benefits of rail freight and the design of franchises for passenger rail services.

The firm has also advised airport regulators on the design of price control regimes, work that has varied from detailed analysis of the price-cap formulae to more high-level work reviewing the merits of "single till" and "dual till" price caps or assessing the incentive effects of revising a price cap determination mid-term.