ely to encourage the development of telecommunications as a way to reduce the need for land transport (although the evidence on this score is rather inconclusive to date) and make traffic flow more efficiently, thereby reducing the need to build new infrastructure. Telecommunications will also be used to improve the operation of other infrastructure. This includes for instance more intelligent electric networks capable of responding more flexibly to changing demand patterns, and more effective monitoring of water networks SO as to reduce leakages and hence the need for water withdrawal. Governments may also impose additional charges on some infrastructure so as to curb demand or introduce resource-saving measures. For instance, future demand for electricity could be moderated by taxes that increase the cost of electricity for final users, as well as by measures to promote energy efficiency (standards, labelling, building codes). Higher electricity prices will be needed to cover the additional costs imposed by environmental policies for the generation, transmission and distribution of electricity. Regarding generation, environmental costs may account for 10% to 40% of total plant costs in fossil-fuel plants and more in nuclear plants according to the IEA. Transmission costs are also likely to rise because of the need to reduce emissions of SF6 (used in transformers and other equipment), which contribute to global warming, and the impact of electromagnetic fields around cables. Environmental policy is also likely to pay particular attention to water utilities. Indeed, water is integrally linked to the health of the environment. Water is vital to the survival of ecosystems and the plants and animals that live in them; in turn, ecosystems help to regulate the quantity and quality of INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 1. A CROSS-SECTORAL PERSPECTIVE ON THE DEVELOPMENT OF GLOBAL INFRASTRUCTURES TO 2030 water. Hence, environmentalists will put growing 