Policy, regulation effectiveness, and sustainability in the energy sector: A worldwide interval-based composite indicator

Energy policy and regulation are critical to implementing renewable energy and the governance of natural resources. Institutions prioritize the support to reliable and sustainable energy access for any world community. As a result, establishing policies, legislation, and institutional structures is crucial to sustain renewable energy. The nations seeking to stimulate investments and boost their energy sectors to accomplish SDG7 must first develop a suitable environment. Policies and regulations help them achieve their goals. In this framework, sustainability represents a watershed moment in the worldwide development agenda. Domestic regulations should encourage responsibility and compliance from businesses to accelerate the renewable energy transition. This paper develops a brand-new interval-based composite indicator that measures the extent of institutional transparency comparing 110 world states, ultimately aiming to quantify national institutional arrangements governing energy policy. The findings reveal a set of nations that stand out among their peers in institutional traits - the UK, the UAE, Australia, Belgium, Czech Republic, Finland, France, Germany, and the US. In general, African countries perform poorly compared to other states. Also, no African country made it to the top 25. The obtained worldwide standards may be used as policy objectives for any country wishing to enhance its energy regulatory performance.

Automated summary

Energy policy and regulation are crucial for the implementation of renewable energy and the effective governance of natural resources. Developing suitable environments, policies, and regulations is essential for accelerating the transition to renewable energy. This paper introduces a new composite indicator that measures the institutional transparency of energy policies in 110 countries. The findings highlight countries with outstanding institutional traits, while African countries generally perform poorly in this aspect.