Abstract
There are three basic approaches to mitigating this risk; namely, institutional instruments that limit the possibility of government opportunism, financial instruments that decrease financial risk, and investment strategies, such as choosing technologies that may not be cost-minimizing but that have lower “sunk” costs than more traditional alternatives. In this paper, we summarize the literature on the first two options. We include energy, telecommunications, water, and transport in the term “infrastructure.”
Published Version
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