In a previous work [Flores et al,]. Cryst. Growth 398 (2014) 40] 131 we demonstrated the advantages of using a thin InAlAs spacer layer in the fabrication of buried-heterostructure quantum-cascade lasers (QCLs), as it improves the morphology of the interface between the laser core and the InP:Fe lateral cladding. In this paper we investigate aspects of InAlAs, which are relevant for its role as insulating lateral cladding of the laser sidewalls: carrier traps, electrical resistivity, and functionality as a sole lateral cladding. We find that a thin InAlAs spacer layer not only improves the regrowth interface morphology, but also eliminates interface-related shallow electronic states, thus improving the electrical resistivity of the interface. We further find that bulk InAlAs grown by gas-source molecular-beam epitaxy as well as InP:Fe are semi-insulating at room temperature, with specific resistivities of 3 x 10(7) Omega cm and 2 x 108 SI cm, respectively. Both materials have also a high thermal activation energy for electrical conductivity (0.79 eV and 0.68 eV, respectively). in order to compare the performance of InP:Fe and lnAlAs as a lateral cladding, lasers were fabricated from the same QCL wafer with differing stripe insulation materials. The resulting lasers differ mainly by the lateral insulation material: SiO2. InP:Ee (with InAlAs spacer), and pure InAlAs. All devices show a similar performance and similar temperature dependence, indicating insulating properties of InAlAs adequate for application in lateral regrowth of buried-heterostructure QCLs. (C) 2015 Elsevier B.V. All rights reserved.