This paper investigates the determinants through which ownership of energy infrastructures for the transmission of electricity and gas affects the type and level of investment. In particular we examine whether the investment propensity of a sample of European energy network companies from 2004 to 2012 changes according to the nature of the owner, distinguishing owners that are network companies, energy companies and owners that are financial investors (e.g. pension funds). Descriptive analyses show that the value of takeovers carried out by financial firms tends to be constantly higher than the value of takeovers conducted by network companies. However, the econometric analysis suggests lower investment propensity of financial firms, raising issues about possible unintended consequences of unbundling.

This seminar has been jointly organized by FEEM and IEFE, Bocconi University.