IJEFSD
Vol. 7 No. 4 (2025): International Journal on Economics, Finance and Sustainable Development (IJEFSD

Regulatory Uncertainty and Capital Formation in LNG Export Projects: Implications for Energy Security and Economic Growth

Rifah Tasnia (Master of Business Administration, Pennsylvania State University, University Park, PA 16802, USA)



Article Info

Publish Date
20 Oct 2025

Abstract

Background: Regulatory uncertainty significantly influences investment decisions in liquefied natural gas (LNG) export projects, affecting capital formation, energy security, and broader economic performance. Despite the strategic importance of LNG infrastructure, limited empirical research has examined how regulatory conditions shape stakeholder perceptions of investment and economic outcomes within the United States LNG sector. Methods: This study employed a quantitative cross-sectional survey involving 185 stakeholders from the United States LNG industry. Data were collected using a structured online questionnaire with five-point Likert-scale items. Descriptive statistics, Pearson correlation analysis, and multiple linear regression were conducted using IBM SPSS Statistics 27 to evaluate relationships among regulatory uncertainty, capital formation, energy security, and economic growth. Results: Respondents reported generally positive perceptions of LNG development, with energy security receiving the highest mean score (4.02). Correlation analysis revealed that regulatory uncertainty was negatively associated with capital formation (r = −0.524) and policy support (r = −0.596), while energy security exhibited the strongest positive relationship with economic growth (r = 0.721). Regression analysis demonstrated that energy security (β = 0.468) and capital formation (β = 0.352) significantly promoted economic growth, whereas regulatory uncertainty negatively influenced economic performance (β = −0.197). The model explained 67.4% of the variance in economic growth (R² = 0.674, p < 0.001). Conclusion: Stable regulatory frameworks strengthen investor confidence, encourage capital formation, enhance energy security, and support sustainable economic growth. Policymakers should prioritize transparent regulations and investment-friendly policies to maximize the long-term economic and strategic benefits of LNG export projects.

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Journal Info

Abbrev

IJEFSD

Publisher

Subject

Economics, Econometrics & Finance

Description

International Journal on Economics, Finance and Sustainable Development (IJEFSD) is an international, peer-reviewed, and scholarly journal aimed at being a platform for interdisciplinary researchers across the globe to develop and advance both theory and practice of economics and finance while ...