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Efficiency vs. distributional concerns in regulatory sandboxes

Author

Listed:
  • Claude Crampes

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Antonio Estache

    (ULB - Université libre de Bruxelles)

Abstract

The paper makes the case for a systematic ex-ante assessment of the distributional impact of efficiency enhancing innovations regulatory sandboxes are expected to test. It shows how their prior formal modeling can inform on the possible need to control in the sandbox design for otherwise underestimated but predictable distributional effects. Failing to do so is likely to lead to underestimate efficiency-equity trade-offs and other distributional issues. This may influence the political sustainability of otherwise potentially welfare enhancing innovations. Simple industrial organization models will often suffice to identify the potential issues at the design stage

Suggested Citation

  • Claude Crampes & Antonio Estache, 2025. "Efficiency vs. distributional concerns in regulatory sandboxes," Post-Print hal-04953563, HAL.
  • Handle: RePEc:hal:journl:hal-04953563
    DOI: 10.1080/17487870.2025.2463660
    Note: View the original document on HAL open archive server: https://hal.science/hal-04953563v1
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    References listed on IDEAS

    as
    1. Emmanuelle Auriol & Claude Crampes & Antonio Estache, 2021. "Regulating public services, bridging the gap between theory and practice," Post-Print hal-03473074, HAL.
    2. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2002. "The Regulation of Entry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 1-37.
    3. Beckstedde, Ellen & Correa Ramírez, Mauricio & Cossent, Rafael & Vanschoenwinkel, Janka & Meeus, Leonardo, 2023. "Regulatory sandboxes: Do they speed up innovation in energy?," Energy Policy, Elsevier, vol. 180(C).
    4. Estache, Antonio & Foucart, Renaud, 2021. "On the political economy of industrial, labor and social reforms as complements," European Economic Review, Elsevier, vol. 137(C).
    5. Uri Ronnen, 1991. "Minimum Quality Standards, Fixed Costs, and Competition," RAND Journal of Economics, The RAND Corporation, vol. 22(4), pages 490-504, Winter.
    6. Angela Attrey & Molly Lesher & Christopher Lomax, 2020. "The role of sandboxes in promoting flexibility and innovation in the digital age," OECD Going Digital Toolkit Notes 2, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Regulatory sandboxes; Innovation; Governance; Anti-trust; Regulation; Efficiency; Equity; Quality standards;
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