Regulatory Objectives and Priorities, Including Trade-Offs in Objectives and Achieving Balance in Pursuing Objectives

Note: Readers should cross-reference this section with Common Roles of Regulators on roles of regulators.

Core References

Managing the Regulatory Process: Design, Concepts, Issues, and the Latin America and Caribbean Story
Washington, D.C.: The World Bank Group, 1999, Chapters 2 and 16.
Guasch, J. Luis, and Pablo Spiller

Describes the design of regulatory agencies and relates the design to the reasons for regulation. Summarizes lessons in regulatory design.

Some Options for Improving the Governance of State-Owned Electricity Utilities
The World Bank, Discussion Paper No. 11, February 2004.
Irwin, T. and C. Yamamoto

Improving performance of government-owned electricity utilities rests on the development of rules and practices that reduce politicians’ willingness or ability to use the utilities for political purposes and pressures utilities to improve performance. Focuses on the relationship between the company and the government as its owner.

The Economics of Regulation: Principles and Institutions
Cambridge, MA: MIT Press, 1988, Reissue Edition, Chapters 1 and 2.
Kahn, Alfred

Explains the traditional reasons for regulation. Describes the basic economic functions of the utility regulator, focusing primarily on service quality, controlling the overall price level, and determining rate structure.

Regional Electricity Regulatory Principles
Mwenechanya, Jorry

Assesses the regulatory practices in southern Africa and recommends principles and strategies for promoting investment.

Sectoral References


Privatization, Restructuring, and Regulation of Network Industries
Cambridge, MA: MIT Press, 1999, Chapter 6.
Newbery, David M.

Describes the goals and objectives of electricity regulation and electricity market reform. Summarizes U.K. case of electricity reform.


Regulatory Reform: Economic Analysis and British Experience
Cambridge, MA: The MIT Press, 1999, Chapter 8.
Armstrong, Mark, Simon Cowan, and John Vickers

Describes the goals and objectives of gas regulation and gas market reform. Summarizes U.K. case of gas reform.


Regulatory Reform: Economic Analysis and British Experience
Cambridge, MA: The MIT Press, 1999, Chapter 7.
Armstrong, Mark, Simon Cowan, and John Vickers

Describes the goals and objectives of telecommunications regulation and telecommunications market reform. Summarizes U.K. case of telecommunications market reform.


Vision and Balance
Government of Canada, 2001.
Report of the Canada Transportation Act Review Panel.

Describes the context for transportation regulation and how it has changed since 1961. The principle of competition between modes became a cornerstone of the policy. Current policy involves tradeoffs of commercialization and decentralization, with a shift toward a more commercial approach and a reduction in subsidies.

Toolkit on Public-Private Partnerships in Highways
Public-Private Infrastructure Advisory Facility, World Bank.
Groupe Egis and Courdert Brothers

Provides policy makers from low- and middle- income countries guidance in the design and implementation of Public-Private Partnerships in the highway sector. Covers all types of road projects and both with and without private funding.

Port Reform Toolkit, 2nd Edition
Public-Private Infrastructure Advisory Facility, World Bank.
World Bank Transport Group

Provides policymakers and practitioners guidance for undertaking sustainable and well-considered reforms of public institutions that provide, direct, and regulate port services in developing countries.

Africa Infrastructure Country Diagnostic: Stuck in Traffic: Urban Transport in Africa
Working Paper number 44980, World Bank, Washington, D.C., 2008.
World Bank and Sub-Saharan Africa Transportation Project

Summarizes recent research on urban transport in 14 large African cities. Provides a comprehensive overview of the state of urban transport in Africa, with a view to drawing out the main challenges facing the sector and illustrating the different ways in which these have been addressed.

Scoping Study – Urban Mobility in Three Cities: Addis Ababa, Dar es Salaam, and Nairobi
Sub-Saharan Africa Transport Program Working Paper, number 70, World Bank, Washington, D.C., 2002.
World Bank

Reports the results of a study of urban mobility in three Sub-Saharan African cities – Addis Ababa, Ethiopia; Nairobi, Kenya; and, Dar-es-Salaam, Tanzania. A major impediment is poor institutional structures and, consequently, a lack of leadership. Concludes that the only way to derive significant improvements in the performance of the urban transport sector, is to reorganize the way in which urban transport is planned, and developed.


Cities Awash: A Synthesis of the Country Cases
in Thirsting for Efficiency, edited by Mary M. Shirley. Washington, D.C.: The World Bank, 2002, pp.1-41.
Shirley, Mary M., and Claude Ménard

Describes the major issues facing water regulators and water sector reformers. Identifies lessons from a series of case studies.

Key Words

Bargaining, Information, Monopoly, Negotiation, Competition, Efficiency, Fairness, Objectives


Case Studies

Final Determinations. Future Water and Sewerage Charges 2000-05: Periodic Review 1999
November 1999.

OFWAT Annual Report 2003-2004