In terms of risk, many appraisals of very large infrastructure investments assume, or pretend to assume, that infrastructure policies and projects exist in a predictable Newtonian world of cause and effect where things go according to plan. In reality, the world of policy and project preparation...

The traditional answer of economists to the problem of internalising external costs of transport is “setting prices right”. In a neoclassical economic world this would correspond to setting prices according to marginal social costs. The neoclassical world is far from reality, however, and...