Infrastructure development has the power to enrich communities, providing critical public services such as electricity, transport and water. However, it also possesses the potential to be very disruptive to the communities that it serves. Such disruptions include loss of amenity, increased pollution (both noise and air) as well as impacts...

Transition risk assessment using traffic and geospatial data In this paper, we develop a methodology to estimate the carbon footprint of thousands of airport infrastructures around the world and test for the existence of a relationship between carbon emissions and realised or expected returns in the private airport investment sector....

Flood damage factor estimation and bond yields in U.S. airports. In this paper, we develop a methodology to calculate the potential damage associated with different types of physical risks at the asset level, and conduct a practical implementation for flood damages in the airport sector in the United States. We...

Insights from 20 years of energy transition in the UK. This EDHECinfra Research Note examines the impact on the risk profile of wind and solar power investments of the increasing dominance of renewables in the energy mix of a given country. As green power sources that are intermittent become central...

Using asset- and fund-level data, we highlight important differences between infrastructure assets and funds, and compare their historical performance and cash flow characteristics with both public and other private investments. An infrastructure asset’s age, sector, business risk and corporate structure all influence the asset’s risk-return profile. We examine the sensitivity...

Private Infrastructure as a Potential Inflation Hedge Private infrastructure assets demonstrated this characteristic during the turbulent first half of 2022. Private infrastructure companies tracked in the EDHECinfra3001 index declined 5.2% through the first half of 20222, which compares favorably to major public equity indices such as the S&P 500 which...

The realised and expected financial performance of green power infrastructure investment, 2010-2021 In 2011, green power projects had expected returns of 8% and brown power projects 9%. Their 10-year annualised total returns in 2021 were 16% and 17% respectively. These two figures may seem related but correspond in fact to...

These findings have risk management and prudential implications. They show that, in times of market stress, while infrastructure does experience drawdowns and is exposed to a market risk premia and to a significant rate risk, it can nonetheless protect the portfolio on the downside – just as long as investor...