American Economic Senate

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Research subject

Energy and Infrastructure

Research on energy systems, transport and public infrastructure as determinants of costs, reliability and productive capacity.

Wind turbines and a farm windmill at the Roscoe Wind Farm in Texas.
Wind turbines and a farm windmill at the Roscoe Wind Farm in Texas. · Image credit

The constraint that investment addresses

An infrastructure project can increase nominal capacity without resolving the binding constraint. Generation requires connections and balancing; a port requires inland links; a rail line requires usable paths, terminals and reliable service. Research identifies the system relationship that turns a physical asset into an economic service.

Financing and delivery

Budget support, regulated revenues, user charges and private contracts allocate costs and risks differently. Construction expenditure and commissioned capacity belong to different stages of delivery. Cost overruns, utilization and operating obligations affect the eventual return.

Assessment follows the public and private commitments over the asset’s life rather than treating the initial allocation as the full economic cost.

Selected research

Economy Study

Electricity and logistics in Mexico's industrial expansion

Mexico's industrial location advantage depends on reliable electricity and door-to-door logistics. The analysis distinguishes national energy plans from site-level connections and examines how service timing, power quality, border procedures, and utilization shape the return to manufacturing investment.

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Research in this subject

12 publications

Energy prices and exposure

An energy price change affects producers, importers, households and public revenues through different channels. Contract terms, exchange rates, taxes and regulated tariffs influence its transmission. A national average can obscure the exposure of an energy-intensive plant or a household with limited alternatives.