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Federal Regulations and U.S. Energy Sector Output

Author

Listed:
  • Joshua C. Hall

    (West Virginia University)

  • Shishir Shakya

    (West Virginia University)

Abstract

A large body of literature finds that the energy sector is important to economic growth and development. The production of energy has negative environmental impacts, however, which has resulted in the sector being highly regulated. While several studies examine the effect of particular regulations on the energy sector, in this study we use the recently developed measure of regulation called RegData to estimate the impact of federal regulations on the energy sector. We employ a panel ARDL model to find an inverted U-shaped relationship between federal regulations and U.S. energy sector output. Federal regulations appear to increase energy sector outputs at low levels and then decline as regulations accumulate.

Suggested Citation

  • Joshua C. Hall & Shishir Shakya, 2019. "Federal Regulations and U.S. Energy Sector Output," Working Papers 19-02, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:19-02
    as

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    File URL: https://researchrepository.wvu.edu/cgi/viewcontent.cgi?article=1031&context=econ_working-papers
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    federal regulation; energy sector; panel ARDL; RegData;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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