Regulatory design
Glossary of Capital Budgeting and Infrastructure Governance, published by the Organisation for Economic Co-operation and Development (OECD) in 2018, defines regulatory design as: ‘setting the "rules of the game" for a particular sector and market. The regulatory framework has profound impact on infrastructure investment, development, maintenance, upgrading and decommissioning. At the most basic level regulation is justified when its economic, social and environmental benefits justify the costs and net benefits are maximised. Regulation should serve the public interest and be informed by the legitimate needs of those affected by regulation. In addition to well-designed rules, good outcomes require that the implementation of these rules is overseen by regulators that enjoy adequate governance arrangements and whose mission allows for the achievement of expected economic, social, and environmental goals.’
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