In this specific case, the regulations seem to be pushing things in the right direction, but miners would’ve gravitated towards free or negative cost energy anyway. In general, regulations create inefficiencies.
Funny, a lot of bitcoiners will say they hate government regulation.
Well, without environmental regulation in the U.S., these landfill gas bitcoin mining projects would probably not exist, as we’re hearing on this spaces (landfills are being told they need to reduce methane emissions by gov’t regulators). In other countries where there aren’t these same regulations, it’s much lower on their list of priorities!
Just making an observation don’t shoot the messenger!
Cc nostr:npub13lkyycj8s3da6fhndtj0wd6s3s2ahmq86s7wrruvzd4tnc66cgfqn4lpsy 
Discussion
Some of the environmental regulation is actually being used for good in this case with bitcoin!
Define inefficiences?
In this case, an inability to produce the optimal economic result.
I see. The issue is a context-specific answer from a generalized statement.
"Optimal" is also completely subjective. Is it optimal for a company to dump pollution in a river? For their P&L, yes. For a broader set of stakeholders / context space, perhaps not.