Bai and Qian (2010) consider the development of the electricity, highway, and
railway sectors in China, with special emphasis on investment incentives. Statistical
summary of the development of these sectors is offered, followed by a detailed
description of the institutional background, including investment and pricing
mechanisms. They further analyze investment incentives based on the institutional
background, and present estimates of the rates of return to investment in these
sectors. It is observed that some of the current practices may serve as useful
transitional arrangements, even though they are not desirable in the long run