Public Utilities Economics

Public utilities economics studies how essential services like water, electricity, and natural gas are supplied and managed. It focuses on the balance between providing these services affordably and ensuring they are sustainable and efficient. Utilities often operate as monopolies, meaning there’s usually one provider in an area due to high costs of infrastructure. This raises questions about regulation, pricing, and access for consumers. Policymakers aim to ensure that utilities serve the public interest, avoid wasteful practices, and invest in infrastructure while keeping rates fair for all.