The Economics of Underutilized Infrastructure

This research examines the economic consequences of infrastructure that operates below its anticipated capacity, including transport networks, water systems, energy infrastructure, and other capital-intensive assets. Drawing on evidence from the World Bank, OECD, and international infrastructure research, it explores how demand uncertainty, operational performance, maintenance obligations, and financing costs influence the economic value of infrastructure investment.

The research highlights the distinction between building infrastructure capacity and generating sustained economic benefits. It considers how underutilization affects capital allocation, financial sustainability, and long-term investment decisions, while recognizing that unused capacity may still serve legitimate purposes such as operational resilience, future demand, and essential public services.