Where should we build it? What design and methods should we use? What price should we set? It is tempting to think that physical infrastructure is no different. Many of the questions are the same. But there are differences, and the policy challenges around infrastructure stem from that. Firstly, infrastructure can be very long-lived, which compounds the uncertainty about future usage rates and congestion.
Secondly, the network element of the infrastructure makes it especially difficult to forecast market size. Thirdly, the social benefits that spill over to the broader economy are harder to quantify than a forecast revenue stream. All countries face the same challenges of providing enough infrastructure in the right places to serve the needs of their populations.