In countries around the world, economic freedom has been shown to increase countries’ capacity for innovation and to improve overall environmental performance as well. The positive link between economic freedom and higher levels of innovation ensures greater economic dynamism in coping with various developmental challenges, and the most remarkable improvements in clean energy use and energy efficiency over the past decades have occurred not as a result of government regulation, but rather because of advances in economic freedom and freer trade that have unleashed greater economic opportunity and generated a virtuous cycle of investment, innovation (including in greener technologies), and dynamic economic growth.

by The Wall Street Journal and
The Heritage Foundation.