Free Market Energy Policies: Making The American Dream Available To All

Jan 22, 2016 · 6 min read

The 50 State Index of Energy Regulation captures the variation in the regulatory environment for energy consumption, production, and distribution across states. The goal is to indicate the relative degree of difficulty for consuming energy and operating energy-related businesses in one state compared with another.

High ranked states on average grow faster than those ranked low. Moreover, the higher rate of economic growth is associated with faster employment growth. Energy regulation can, therefore, be an important factor in determining the prosperity of a state.

Source: PRI

Using the rankings, we found strong empirical support for the claim that economically restrictive regulations have an adverse impact on growth. For example, over the last five years the average growth rate of the top 10 states (the states with the most economically efficient energy regulations) exceed the growth of the bottom 10 states (the states with the least economically efficient regulations) by over seven and a half percentage points. Unsurprisingly, the higher rate of economic growth is also associated with faster employment growth.

Such higher taxes will have a “piling on” effect when combined with cost increases related to the state’s proposed new workplace and environmental regulations.


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American Fuel & Petrochemical Manufacturers: our members serve America by manufacturing products for your life every day. #AFPM

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