Laws Driving Renewable Energy Adoption: Environmental Regulations Impact

Abstract

Role of Environmental Regulations on the Adoption of Renewable Energy Nations are taking measures to manage the environmental effect of social and economic activities while achieving growth. Replacing non-renewable energy sources such as fossil fuels with renewable alternatives is fundamental for environmentally-friendly growth in the 21st century. One of the strategies that countries use to promote the use of renewable energy is through energy laws aimed at increasing the creation and use of renewable energy (Oduro et al., 931). Regulations that have the specific goal of increasing the consumption of renewable energy are a major tools for countries around the world to manage the environmental expenditure of economic growth. Such laws set the prices and quantity of energy that entities consume from non-renewable sources to promote the use of solar, wind, and other sources of renewable energy. As nations invest in using laws to influence the consumption of energy by households and organizations, it is critical that they consider the effectiveness of such policies in achieving their objectives. Formulating environmental regulations has the potential to increase the investments in renewable energy and facilitate the protection of the environment from economic activities. One of the goals of using laws to increase the consumption of renewable energy is to promote investments in the industry. Such laws offer incentives to organizations conducting research and development in the industry to make more efficient options available to consumers. According to Dzwigol et al, environmental regulations in the European Union countries had a non-linear positive effect on the efficiency of renewable energy sources. Organizations receiving price incentives to invest in the industry and consume renewable energy contributed to the development of more efficient sources for the markets in these countries. Nations with tough laws controlling the use of non-renewable sources experienced greater development in options available to consumers. Laws increase the amount of investments organizations make in developing and promoting the use of renewable energy options. Consequently, more efficient sources make it possible for more consumers to shift from the traditional non-renewable sources to renewable alternatives. Since the laws and the effectiveness of implementation differ among nations, it is necessary to consider how such efforts affect the transition to renewable sources. Comparing the legal frameworks among nations could indicate how they affect the capacity of laws to promote the use of renewable energy. The study by Lie and Feng including energy legislation in 129 countries indicated that strong legal systems increased the capacity of laws to influence the transition to renewable energy. The findings further showed that laws were more effective in causing the reduction in the use of non-renewable energy in the middle and high-income nations compared to the low-income countries. Nations all over the world have invested...