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The Roles of Economic Freedom and Regulatory Quality in Creating a Favorable Environment for Investment in Energy R & D , Infrastructure, and Capacity
Author(s) -
Cebula Richard J.,
Mixon Franklin G.
Publication year - 2014
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/ajes.12076
Subject(s) - economic freedom , investment (military) , quality (philosophy) , per capita , sustainable development , function (biology) , business , economics , energy (signal processing) , natural resource economics , market economy , biology , microbiology and biotechnology , ecology , environmental health , medicine , population , philosophy , statistics , mathematics , epistemology , politics , political science , law
Sustainable investment in energy requires a favorable economic and regulatory environment. A random effects model ( PLS estimations), using a four‐year panel, reveals the growth rate in real per capita GDP for OECD nations as an increasing function of both economic freedom and regulatory quality. These results underscore the critical roles that economic freedom and regulatory quality play, directly and indirectly, in creating an environment conducive to sustainable investment in energy R & D and infrastructure.