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The Center for Regulatory Solutions will educate the American public about the burdens and consequences of over-regulation on the economy. We will also seek to improve the rulemaking process, so that small business owners and those impacted by regulations are treated fairly. Small business owners and entrepreneurs must have a voice to ensure their needs and concerns are heard, and acted upon. This will be an essential part of our mission, because all too often, rulemakings are manipulated by certain special interests, and as a result, sound science and the rule of law give way to politics and ideology. It will be the Center’s job to expose this tendency, and make the rulemaking process more open and transparent. With your help, we will ensure regulators are held accountable for their decisions.

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New 50-State Energy Regulation Index: Mandates, Subsidies Slow Growth, Job Creation

Pacific Research Institute Study Ranks State Energy Policies

Washington, D.C.—The Pacific Research Institute (PRI) will hold a conference call this afternoon to explain its new study ranking energy regulatory regimes in all 50 states. PRI will be joined on the call by the Center for Regulatory Solutions (CRS), a project of the Small Business and Entrepreneurship Council.

“I’m pleased to join the Pacific Research Institute today to help educate policymakers about this important new study,” said CRS President Karen Kerrigan. “Small businesses are an essential part of our nation’s energy renaissance, providing equipment, materials and technology that make oil and gas exploration and production possible. As the PRI study shows, to realize the vast potential of our energy resources and spur more innovation and investment from small businesses, state energy policies should remove restraints on markets, which allocate resources far more efficiently than bureaucracy.”

“As economists, we have adopted a basic economic perspective of efficiency, defined as allocating resources to their most productive uses,” said PRI’s Senior Fellow Dr. Wayne Winegarden. “The effects of policies are evaluated, as objectively as possible, solely from that perspective. Policies that promote economic efficiency receive higher scores; those that reduce economic efficiency receive lower scores. Given the regulatory variation across states, we’re able to see where in the country regulations for consumption, production and distribution of energy is relatively more economically efficient.”

The study condensed a state’s energy policy into seven key questions. The answers to those questions, such as ‘What green technology subsidies does the state provide and how do these affect economic efficiency?’ are data-driven, and determined a state’s overall ranking. In the study, Texas ranked highest on the list while New York ranked lowest. Some other examples from the Index include:

North Dakota: 6

Kansas: 7

Colorado: 12

Louisiana: 17

Iowa: 20

Arkansas: 23

West Virginia: 26

Kentucky: 32

Virginia: 32

New Hampshire: 36

Pennsylvania: 39

North Carolina: 42

Michigan: 44

California: 49


See an interactive version of the map by clicking here.

The study contains key findings showing the link between a state’s ranking and economic growth and job creation. State’s that ranked higher in the index typically had greater economic growth rates and job creation, as opposed to lower ranked states that grew more slowly.

States also scored lower for misallocating resources through “green subsidies” such as tax rebates, credits or low interest loans for wind and solar power. As the study’s authors wrote, “[S]ubsidies to encourage use of green technologies entice energy producers to use more resources for energy generation than the value of the additional energy would justify. Again, the value of the economy’s total production is lessened, because something of value has been lost or wasted.”

The state energy Index complements other state indices compiled by the Small Business and Entrepreneurship Council on taxes and small business policy and regulatory environments.

Click here for the full study

Press conference dial-in:

When: Tuesday, September 30 at 2:30 pm EST


Where: Conference ID: 3351598 / Participant Dial-in: 888-523-1225

RSVP: Rebecca.Brown@centerforregulatorysolutions.org 

For more than 20 years, the Small Business & Entrepreneurship Council (SBE Council) – a nonprofit advocacy, research and education organization – has worked to protect small business and promote entrepreneurship. The Center for Regulatory Solutions is a project of SBE Council.


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