Europe faces major investment in infrastructure in the coming decade in the context of the credit crisis and the broader economic crisis that followed.The article considers what the core market failures in infrastructure are, focussing on the gap between marginal and average costs, the system...

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...