We look at the potential loss of value of Russian airports due to the war in Ukraine. Drivers of impact include the closure of a number of national airspaces to Russian airlines as well as related sanctions that have been imposed since the start of the invasion.
The Cost of Capital of Brown Gas: Would excluding natural gas from the green taxonomy prevent the financing of transition fuels?
We consider whether or not natural gas should be included in the EU Green Taxonomy because of the latter’s distorting effect on the cost of capital of energy projects. We argue that excluding gas from the taxonomy would not increase the cost of capital of gas generation.
The Volatility of Unlisted Infrastructure Investments: Valuation drivers and trends, 2000-2021
In this paper, we examine the drivers of the volatility of unlisted infrastructure equity investments. Our analysis uses the EDHECinfra database of unlisted infrastructure equity investment data, which covers hundreds of firms over 20 years and a new approach to measure the market value of these investments over time.
The Fair Value of Investments in Unlisted Infrastructure equity: The robustness of better data & advanced methods
As more investors consider allocations to unlisted infrastructure, the need to bring the asset class into the mainstream of risk management, asset allocation and prudential regulation is increasing rapidly. Recent advances in data collection and asset pricing techniques now enable the evolution of fair market prices to be estimated.
Anatomy of a Cash Cow: An In-Depth Look at the Financial Characteristics of Infrastructure Companies
We examine how infrastructure companies differ from the rest of the economy and in particular whether or not they tend to pay larger and more frequent dividends. We find that infrastructure companies exhibit key systematic differences with a sample of ‘matched’ firms that are otherwise comparable.
The cost of capital of motorway concessions in France: A modern approach to toll regulation
The high level of tolls on privatised highways is a sensitive matter in French politics. This research paper on the adequate level of tolls on French roads is prominently featured in a report released by the Senate Investigative Committee on the control and regulation of highway concession contracts and highlights the failure to set tolls using fair benchmarks.