This paper analyses the role of infrastructure endowment and investment in the genesis of regional growth in the European Union. It assesses the economic effects of the existence and improvement of transport networks in light of their interactions with innovation and local socio-economic...

This paper discusses alternative ways of defining and measuring the marginal economic cost of public funds and reviews empirical cost estimates - including estimates for EU countries. Moreover, it illustrates how the economic cost of public funds should be accounted for in cost-benefit analyses...

We set out to decompose government investment, seeking especially to estimate how much governments in Europe invest in infrastructure in general and transport infrastructure in particular. It is concluded that infrastructure accounts for about one-third of overall government investment in the EU...

This paper applies portfolio-theory optimisation concepts from the field of finance to produce an expository evaluation of the 2020 projected EU-BAU (business-as-usual) electricity generating mix. We locate optimal generating portfolios that reduce cost and market risk as well as CO2 emissions...

The main purpose of this paper is to preview the other contributions to this volume of the EIB Papers. In this context, it offers a few additional perspectives. One highlights why energy issues have re-emerged as a matter of policy interest. Another concerns the difference between the...

The paper critiques current European energy policy. The key market failures are identified and the reasons for intervention set out. In addition to the traditional concerns with monopoly and market failures, the public goods aspects of diversity and security of supply, together with...

EU energy policies have changed focus in the last few years with a view to substantially reducing energy import dependency and greenhouse gas emissions. The EU Commission has played a leading role in defining the new orientations. The implementation of the EU policy objectives approved by the...

Following a brief review of the rationale for promoting renewable energy sources, this paper compares alternative policies to promote the production of renewable electricity. The focus is on feed-in tariffs (used in Germany, Spain, and France - for instance) and tradable green certificate (TGC)...

Recognising and discussing the elusiveness of industrial policy as a distinct policy concept, this paper argues against what probably is the most extreme type of so-called "vertical" industrial policy, that is, support for national or European champions. It also critically reviews the rationale...

This paper assesses the effectiveness of vertical industrial policies within the European Union. Vertical industrial policy is defined as government support of specific firms or industries ("picking winners" or "supporting losers"). It is measured as state aid granted by Member States to the...