From responsive to smart regulation

A critical analysis of freight transport railway sector regulatory design in Brazil

Résumé

Purpose ”“ Based on the theories of responsive regulation and of smart regulation, this paper aims to analyze to what extent the regulatory design of the Brazilian freight rail sector, from 1996 to 2019, fulfills the assumptions of these theories and what are the practical benefits that could come from incorporating its precepts.

Methodology/approach/design ”“ This article develops a theoretical and normative approach. The presentation of the theory of responsive regulation, the regulatory pyramids (the literature identifies at least eleven), as well as the principles, indicators and preferential status of smart regulation will play a central role in the proposed study. The article aims to compare the regulatory legal framework of the sector with the theories stated, in order to demonstrate the hypothesis investigated.

Findings ”“ It demonstrates that the incorporation of techniques, strategies and regulatory mechanisms proper to the responsive regulation theory, as well as the consideration on a broader scale of the principles enunciated by the smart regulation theory in the Brazilian freight railway sector, is essential for the modernization of the regulatory environment and the necessary expansion of the regulated service.

Practical implications ”“The paper presents a fresh look on the various actors participating in the regulatory environment (government, regulators, regulated market/sector and civil society), towards gradual and progressive incorporation of responsive regulation mechanisms and principles of the smart regulation theory.