Influence of environmental technologies and income on the environment in OECD member countries transitioning to low carbon societies

This paper focuses on examining the effects of per capita environmental technology development on the load capacity factor (LCF) within the context of OECD member countries during the period spanning 1990 to 2021. To investigate these relationships, we employ the AMG estimator and FM-LS estimator. Additionally, we explore the validity of the load capacity curve for these countries and estimate the inflection points in the income per capita-environmental sustainability relationship. Our findings lead us to the conclusion that there is no significant impact of environmental technologies on environmental sustainability. Furthermore, we observe a negative influence on the development of environmental technologies, which can be attributed to the negative externalities associated with their implementation and the lack of societal adoption. Moreover, our estimations reveal an inflection point at $45,251.90 in terms of GDP per capita, beyond which the sustainability condition of the studied countries improves.

Do institutions contribute to environmental sustainability? A global analysis using the dynamic spatial Durbin and threshold models

There has been a recent surge in attention to the potential involvement of institutions in enhancing environmental quality. This research contributes to the ongoing debate by analyzing the spillover and nonlinear effects of institutions on the load capacity factor (LCF) in a sample of 100 countries between 2000 and 2019. The spillover effects are analyzed using the dynamic spatial Durbin model (DSDM), while the dynamic threshold model is implemented to estimate the nonlinear impacts of institutions. The Moran's I and Geary's C tests reveal a positive spatial autocorrelation for the LCF. The DSDM indicates the existence of positive direct and indirect (spillover) effects of political stability, control of corruption, and the rule of law on the LCF. Moreover, control of corruption has the highest positive influence on the environment. When conducting the threshold analysis, the locally weighted scatterplot smoothing curve indicates a nonlinear relationship between institutions and LCF, while the threshold test suggests a single threshold and two regimes. The dynamic panel threshold model reveals that government effectiveness and the rule of law positively affect the environment under both regimes. On the contrary, the positive effects of control of corruption, regulatory quality, and political stability are only observed under the upper regime. Furthermore, control of corruption has the highest positive environmental impact, albeit it needs more time to be achieved. The research emphasizes the importance of international collaboration and the design of both short- and long-term strategies to enhance institutional quality and, consequently, safeguard the environment.

Do renewable energy and human capital facilitate the improvement of environmental quality in the United States? A new perspective on environmental issues with the load capacity factor

Recently, countries have been making intensive efforts to alleviate the burden on the environment and to make environmental conditions sustainable. In this context, our study aims to investigate the long-term impact of renewable energy consumption (REC) and human capital (HC) by considering the load capacity factor (LCF). We also investigate the long-term impact of economic growth (Y) and non-renewable energy consumption (NREC) on the LCF. In this context, we analyze annual data for the U.S. for the period 1965-2018 using the newly developed augmented ARDL (AARDL) approach. The long-term empirical results show the following. i) Increases in Y negatively affect LCF and deteriorate environmental quality. ii) Increases in NREC negatively affect LCF and accelerate the deterioration of environmental quality. iii) REC has no significant impact on environmental quality. iv) Increases in HC support the improvement of environmental quality. The empirical results show that contrary to expectations, renewable energy consumption does not have a significant impact on environmental quality in the U.S., whereas human capital is an important factor in improving environmental quality. In this context, US policymakers should pave the way for more investment in eco-friendly renewable energy investments and human capital to establish sustainable environmental quality. Policymakers should also take steps to reduce the use of fossil fuels.

Evaluating forest depletion and structural change effects on environmental sustainability in Pakistan: Through the lens of the load capacity factor

The pace of species extinction and deforestation has increased dramatically due to the substantial increase in global environmental degradation. This trend is approaching the crucial temperature threshold of 2 °C and calls for more attention. Although previous research has observed the individual impacts of forest depletion, structural change, economic growth, and urbanization on various sustainability outcomes, there has been no previous research into their interrelationships with an emphasis on the load capacity factor (LCF). Furthermore, no previous study has examined the environmental impacts of the abovementioned variables by contrasting the results of LCF and CO2 emissions in Pakistan. Therefore, this research suggests a theoretical framework that integrates these concepts, provides a roadmap for an effective and sustainable mitigation strategy for Pakistan and compares LCF results with CO2 emissions. Using the time-series data from 1970 to 2021, a unique and sophisticated dynamic Autoregressive Distributed Lag (DARDL) technique, the authors found that (i) a 1 % rise in forest depletion leads to a decline in load capacity factor by 0.026 %. (ii) A one per cent upsurge in structural change fosters environmental sustainability by raising the load capacity factor by 0.084 %. (iii) An increase of 1 % in economic growth dwindles the load capacity factor by 0.027 %. (iv) A one per cent surge in urbanization enhances the load capacity factor by 0.029 %. The findings suggest that Pakistan's Government should promote afforestation by emphasizing the constructive role of structural change in achieving environmental sustainability.

Foreign investments and load capacity factor in BRICS: the moderating role of environmental policy stringency

This research examines whether environmental regulations have a moderating effect on the link between foreign direct investment and the environment, as well as the effect of foreign capital investments on environmental quality for BRICS nations. In this approach, using second-generation panel data methodologies for the period 1992-2020, the impacts of foreign direct investments, real national income, consumption of renewable energy, and environmental stringency index on the load capacity factor are explored in the base empirical model. In order to test if there is any evidence of a potential parabolic link between economic growth and environmental quality, the model also includes the square of real national income. In addition, in the robustness model, the moderating role of environmental policy on foreign investment and environmental quality is checked. Empirical results show a U-shaped association between environmental quality and economic development. The usage of renewable energy and the environmental stringency index is also shown to improve environmental quality, although foreign direct investments decrease it. Finally, it is determined that environmental regulations are effective in undoing the negative impacts of foreign capital investments on environmental quality, demonstrating the validity of their moderating function.

Evaluating the role of financial globalization and oil consumption on ecological quality: A new perspective from quantile-on-quantile granger causality

Global warming has progressed into a pressing global concern, primarily driven by human activities. To address this issue, it is vital to identify the key drivers of ecological quality and develop effective policies in response. Consequently, this study seeks to empirically examine the causal effect of financial globalization, economic growth, economic policy uncertainty, and oil consumption on the load capacity factor (LF) in Brazil. The analysis utilizes quarterly data spanning from 1990 to 2021. In this pursuit, the study introduces an array of quantile-based methodologies, encompassing quantile ADF, PP, and KPSS tests, as well as the innovative Quantile-on-Quantile Granger Causality (QQGC) approach. The QQGC represents a notable advancement beyond traditional quantile Granger causality (QGC) methods, as it accounts for the conditional distribution of dependent and independent variables. This study bridges a critical gap in the existing literature by introducing the QQGC to capture the causal influence of the regressors on LF. The findings derived from the QQGC analysis indicate that financial globalization, economic growth, economic policy uncertainty, and oil consumption significantly predict LF across all quantiles. These results offer valuable insights that can inform the formulation of effective policies and strategies aimed at addressing ecological quality and mitigating the impacts of global warming.

Evaluating the impact of technological innovation and energy efficiency on load capacity factor: empirical analysis of India

The determinants of environmental degradation have been investigated many times by utilizing carbon dioxide emissions and/or ecological footprint. However, these traditional environmental degradation indicators do not consider the supply side of environmental problems. Therefore, this study focuses on the dynamic influence of financial development, energy efficiency, economic growth, and technological innovation on environmental degradation in India through the load capacity factor, including both the supply and demand sides of environmental problems. For that purpose, the recently developed dynamically simulated autoregressive distributed lag (ARDL) method is employed using the annual time-series data extending from 1980-2020. The dynamically simulated ARDL results demonstrate that financial development, economic growth, and technological innovation have a dynamic adverse impact on the load capacity factor, whereas energy efficiency has a positive dynamic influence on environmental quality. In addition, the results support the validity of the environmental Kuznets curve hypothesis as the negative effect of economic growth on environmental quality decreases over time. Based on the study findings, policy recommendations are provided for India. Finally, this study utilizing load capacity factor as an indicator for environmental quality will provide new topics in exploring the determinants of environmental degradation.

Sustaining environment through municipal solid waste: evidence from European Union economies

As part of their pursuit to succeed the Sustainable Development Goals (SDGs), European Union (EU) countries have placed great importance on realizing SDG 11, which aims to create sustainable cities and communities. The relationship between environmental quality and municipal solid waste remains understudied despite its significant impact on achieving SDG-11. Consequently, this study seeks to peruse municipal solid waste, renewable energy consumption, human capital, and natural resources impact on load capacity as a comprehensive measure of environmental quality. By utilizing the CS-ARDL approach, this study reveals the inadequacy of municipal solid waste conversion in EU countries and highlights the favorable effect of human capital and renewable energy on enhancing environmental quality. Moreover, this study provides concrete evidence that natural resources contribute to environmental corruption. EU economies should adopt policies to bolster municipal solid waste conversion to improve environmental quality.

Do the effects of aggregate and disaggregate energy consumption on different environmental quality indicators change in the transition to sustainable development? Evidence from wavelet coherence analysis

In the 2030 Agenda for Sustainable Development, adopted by the United Nations (UN) member states in 2015, half of the target period has been exceeded. However, China, whose energy consumption relies heavily on fossil resources, remains at the top of the list of global polluters. Therefore, investigating the environmental impacts of energy types is essential to China's path towards Sustainable Development Goals (SDG)-7 and SDG-13. Based on this motivation, the paper offers new insights into the energy-environment literature for China with wavelet coherence analysis (WCA). This approach can investigate the relationship between variables in a periodic manner based on the frequency behavior of the models. The paper separately analyzes the effects of primary energy consumption (PEC), fossil energy consumption (FEC), renewable energy consumption (REC), nuclear energy consumption (NEC), GDP, and population (POP) on three different environmental indicators in China. Using two environmental pollution indicators (carbon emission (CO2) and ecological footprint (EF)) and one environmental quality indicator (load capacity factor (LCF)), the paper allows for comparison and robustness checks on the environmental impacts of energy indicators. Empirical findings reveal the following: (i) Except for REC and POP in the CO2 model, the variables in all three models largely move together during the period under observation; (ii) variables other than POP have consistent coefficient signs; (iii) PEC, FEC, NEC, and GDP increase CO2 and EF while decreasing LCF; (iv) the effect of NEC on LCF is more obvious until 2000; (v) unlike the others, REC affects CO2 and EF negatively and LCF positively; (vi) there is bidirectional causality between PEC and environmental indicators but not for REC; (vii) the causality relations of other variables with environmental indicators differ in terms of model, time, and direction of causality. In light of the findings, the paper highlights that only the REC improves environmental quality in China. Other energy indicators contribute to environmental degradation. China, whose ecological deficit has increased dramatically in recent years, urgently needs to reduce its dependence on fossil energy sources by accelerating investments in REC. Governments should also review nuclear energy policies, which are expected to help achieve carbon neutrality.

Impact of economic policy uncertainty and renewable energy on environmental quality: testing the LCC hypothesis for fast growing economies

This study investigates the influence of economic policy uncertainty and trade openness on load capacity factor for fast growing countries for time period of 1996-2019. The empirical outcomes verify the presence of the LCC hypothesis in fast growing economies. Results also show that economic policy uncertainty reduces environmental quality for lower quantiles, whereas renewable energy consumption is a useful tool for improving environmental quality. Moreover, the negative sign of the coefficient of trade openness demonstrates that the current pattern of trade is not providing the desired outcomes. Based on these empirical findings, we suggest a comprehensive policy framework to attain the targets of SDG 07 (renewable energy), SDG 08 (economic growth), and SDG 13 (climate action).

Impact of banking development and renewable energy consumption on environmental sustainability in Germany: Novel findings using the bootstrap ARDL approach

This study examines the effects of banking development, economic growth and consumption of renewable energy on carbon dioxide (CO2) emissions and load capacity factor (LCF). Previous empirical studies have assessed the interrelationship between banking development and CO2 emissions; however, these studies have ignored supply-side ecological issues. To overcome this issue, this study evaluates the effect of banking development on LCF, which is considered to be one of the most comprehensive ecological proxies to date, including both biocapacity and ecological footprint (EF). Using the bootstrap autoregressive distributed lag model, the study reveals that renewable energy improves ecological quality in Germany. The results of the investigation demonstrate that the environmental Kuznets curve hypothesis is valid in Germany using CO2 emissions and LCF indicators. Furthermore, this study demonstrates that banking growth and renewable energy in Germany correlate with improved environmental quality. These findings provide policymakers with important insights. In this context, the study advises the banking industry and government authorities to leverage banking expansion to support green energy to achieve the national goal of zero CO2 emissions by 2045.

Analyzing economic growth, eco-innovation, and ecological quality nexus in E-7 countries: accounting for non-linear impacts of urbanization by using a new measure of ecological quality

The rising urban population and accelerated resource consumption pose major environmental challenges. Given that around 75% of global resources are consumed in urban areas, understanding the true association between urbanization (UR) and ecological quality is necessary for better urban strategies. Alongside this, eco-innovation (ECO) can limit environmental pollution and thus, it is the cornerstone of environmental policies. On that note, this research discloses the nexus between eco-innovation, economic growth (EGR), and ecological quality by considering the non-linear effects of UR in the emerging seven (E-7) nations from 1992 to 2018. Unlike previous literature, the newly developed indicator of ecological quality (the load capacity factor (LCF)) is adopted to understand the connection between UR, eco-innovation, and ecological quality since this new comprehensive indicator is based on both biocapacity and ecological footprint (EF). In the methodology, the "Continuously Updated-Fully Modified" (CuP-FM) test is used since this method offers diverse benefits for panel data estimation by accounting for major panel data estimation issues including autocorrelation, endogeneity, heteroscedasticity, fractional integration, and cross-sectional dependence. The empirical estimates unveiled that the current levels as well as high levels of UR limit the LCF. This evidence suggests that UR in the E-7 nations expands ecological degradation. This finding contradicts the assertions of ecological modernization theory that expanding urbanization brings some ecological benefits. Similarly, economic growth alleviates ecological quality. However, eco-innovation and agricultural land (AGL) contribute to enhancing the LCF and promoting ecological quality. Further, UR and eco-innovation Granger cause the LCF. Lastly, comprehensive urban environmental strategies are discussed to promote sustainable urbanization backed by eco-innovation.

Testing the income-finance-trade-environment nexus based on the ecological load capacity factor: Frequency-domain causality evidence from Nigeria

To ensure sustainable development, it is crucial that the consumption of ecological resources remains within their productive capacity. This study aims to support policy formulation by examining the nexus between income, financial development, trade openness, and the ecological load capacity factor in Nigeria from 1970 to 2021. The results of the Bayer-Hanck and autoregressive distributed lag (ARDL) bounds cointegration tests indicate a long-run equilibrium relationship among the variables. Parameter estimations were conducted using the dynamic ordinary least squares (DOLS) and ARDL model estimators. Both the long-run and short-run results indicate that the ecological load capacity factor has a U-shaped curve with income, thereby validating the load capacity curve hypothesis in Nigeria. The estimated threshold turning points of the curve fall within Nigeria's current range of per capita GDP, which indicates that further increases in income will enhance ecological sustainability. Additionally, the ecological load capacity factor exhibits a negative relationship with financial development and trade openness in the long run. The Breitung-Candelon spectral Granger causality tests reveal that, in the long run, unidirectional causality runs from income and trade openness to the ecological load capacity factor, and bidirectional causality exists in the case of financial development. Furthermore, the tests indicate that none of the causal paths are significant for wavelength periods below four years. Therefore, the study recommends implementing medium-to long-term policy strategies to strengthen the ecological resilience base of the economy.

How do natural resources and economic growth impact load capacity factor in selected Next-11 countries? Assessing the role of digitalization and government stability

With growing  environmental concerns, everyone's attention has shifted to how we use our limited materials supplies. Rapid economic expansion is dependent on heavy resource use, decreasing biodiversity and raising the ecological footprints (EF), resulting in a reduction in the load capacity factor (LCF). Because of this, scholars and policymakers are actively looking for approaches to improve the LCF without hindering economic growth (GDP). For similar reasons, this research aims at how the selected next eleven economies improved their LCF from 1990 to 2018 by analyzing the effect of digitalization (DIG), natural resources (NAT), GDP, globalization, and governance. To account for dependence across sections and slope variation, the cross-sectional augmented ARDL model is used in this research. The long-term findings indicate that LCF was diminished by dependence on NAT, globalization, and economic growth and was bolstered by DIG and sound governance. The work recommends that financial and policy support is needed for initiatives such as zero-emission vehicle production and energy-efficient building construction. By offering a line of credit at low interest rates, renewable energy projects can attract domestic and private investors.

Analyzing the validity of load capability curve: how economic complexity, renewable energy, R&D, and communication technologies take their part in G-20 countries

Intense anthropogenic contamination of the air, water, and soil inspires scholars to examine the causes of pollution and provide remedies to assure environmental sustainability. Therefore, researchers in this study are driven to investigate the causes of the severe air, water, and soil contamination that has resulted from human activity and to offer recommendations for achieving environmental sustainability. This research contributes to the ecological works by suggesting the load capability curve (LCH) hypothesis and using the load capacity factor (LC) to investigate components influencing climatic quality. The LC enables thorough climatic value examination when comparing ecological footprint and biocapacity. Information and communication technologies (INF), development and research (R&D), renewable energy (RE) usage, and disposable income are all examined, considering their effects on the load capacity factor. This analysis utilizes the cross-sectionally augmented autoregressive distributed lag estimator and the Westerlund cointegration on data for the G-20 countries from 1995 to 2018. Empirical evidence suggests that renewables, R&D spending, economic complexity, and INF all benefit environmental quality. This study cannot support the LCH hypothesis, which states that increasing income worsens ecological conditions up to a certain point but then aids in improving environmental quality afterward. Based on the findings, G-20 governments should prioritize environmental policies that boost economic growth, spread renewable energy, prioritize research and development spending, and assist the implementation of green INF infrastructure.

Are clean energy technologies a panacea for environmental sustainability in sub-Saharan African countries?

The average population in sub-Saharan Africa that has access to clean fuel for cooking and technology is 23.6%. This study examines the panel data for 29 sub-Saharan African (SSA) countries for the period 2000-2018 to estimate impacts of clean energy technologies on environmental sustainability measured by load capacity factor (LCF) to capture both nature's supply and man's demand for the environment. The study used generalized quantile regression, which is more robust to outliers and eliminates the endogeneity of variables in the model using lagged instruments. Results show that clean energy technologies (clean fuels for cooking and renewable energy) have positive and statistically significant impacts on environmental sustainability in SSA for almost all quantiles. For robustness checks, we used Bayesian panel regression estimates and the results remained unchanged. The overall results suggest that clean energy technologies improve environmental sustainability in SSA. The result shows a U-shaped relationship between environmental quality and income and confirms the Load Capacity Curve (LCC) hypothesis in SSA, which implies that income first worsens environmental sustainability and then, after exceeding certain quantiles, improves environmental sustainability. On the other hand, the results also confirm the environmental Kuznet curve (EKC) hypothesis in SSA. The findings show the importance of using clean fuels for cooking, trade, and renewable energy consumption in improving environmental sustainability in the region. The policy implication is that governments in SSA should reduce the cost of energy services (i.e., renewable energy and clean fuels for cooking) to achieve greater environmental sustainability in the region.

The role of environmental protection expenditures and renewable energy consumption in the context of ecological challenges: Insights from the European Union with the novel panel econometric approach

In line with the United Nations' sustainable development goals (SDGs), countries are taking action to achieve their carbon reduction goals. Because countries have limited financial resources, it is important for carbon reduction policies that public expenditure is used effectively. Researchers have neglected to probe the environmental quality in European Union countries by considering environmental protection expenditure and renewable energy consumption. This study expands the literature by investigating the impact of renewable energy consumption and environmental protection expenditure on the load capacity factor, which considers both the supply and demand directions of the environment. Hence, this work contributes to the SDG 7 (affordable and clean energy), SDG 6 (clean water and sanitation), and SDG 15 (life on land) targets of European Union-22 countries. The study uses the CS-ARDL approach, which considers cross-sectional dependence, endogeneity, and heterogeneity. Empirical analysis showed that environmental protection expenditure is insufficient for European Union economies. In addition, renewable energy consumption contributed to environmental quality. Based on the outcomes, European Union countries should allocate larger budgets from their general budgets for environmental protection. Policies that can attract the attention of the private sector and not just the public sector should be implemented.

Assessing the role of the insurance market and renewable energy in the load capacity factor of OECD countries

In the empirical literature, few studies assessed the influence of the insurance market on carbon emissions. However, the effects of insurance markets on the load capacity factor (LCF) have been ignored. In this regard, the objective of the current work is to assess the potential impact of the insurance market on environmental sustainability in 27 OECD countries from 1990 to 2018 based on the LCF, which implies the strength of a state to enhance the population based on the current lifestyle. The present work employed the novel Method of Moments Quantile Regression (MMQR). This model is the prime and correct technique to better understand the association between the insurance market and the LCF across heterogeneous quantiles and to yield more robust empirical outcomes. The MMQR findings indicate a negative interaction between the insurance market and the LCF. In other words, the insurance sector has a powerful influence on economic activities and investments, such that insurance activities lead to an increase in the level of energy utilization, and thus have a negative influence on ecological sustainability. In contrast, the findings illustrate a positive and considerable association between renewable energy consumption and LCF. Based on the overall outcomes, it is suggested that OECD countries should focus on policies that encourage the use of renewable energy rather than incentivizing the insurance market. OECD country governments should also support green insurance activities to minimize the environmental damage of the insurance market.

Are the impacts of renewable energy use on load capacity factors homogeneous for developed and developing nations? Evidence from the G7 and E7 nations

Both developed and underdeveloped economies worldwide are now more concerned than ever in respect of achieving environmental sustainability. Accordingly, the majority of the global economies have ratified several environment-related pacts to facilitate the tackling of global environment-related problems. Although these problems are assumed to be addressed using diverse mechanisms, limiting the use of fossil fuels has often been recognized as the ultimate enabler of environmental sustainability. Against this backdrop, this study aims to assess the environmental impacts associated with higher renewable energy use, controlling for economic growth and population size, in the context of the G7 and E7 countries using data from 1997 to 2018. Moreover, instead of using the traditional environmental quality proxies, this study tries to proxy environmental degradation with the load capacity factor levels of the countries of concern. The long-run associations among the study's variables are confirmed by outcomes generated from the cointegration analysis. Besides, regression analysis highlighted that integrating renewable energy into the energy systems while withdrawing from the use of fossil fuels can help to improve environmental quality by increasing the load capacity factor levels. In contrast, economic growth and population size expansion are evidenced to impose environmental quality-dampening impacts by reducing the load capacity factor levels. However, the findings, in the majority of the cases, are seen to differ across the groups of the G7 and E7 countries, especially in terms of the variations in the magnitudes of marginal environmental effects over the short and long run. Lastly, the causality analysis confirms the directions of the causal relationships among the variables of concern. Based on these results, a couple of policy interventions are recommended for improving environmental quality in the G7 and E7 countries.

The effect of financial globalization and natural resource rent on load capacity factor in India: an analysis using the dual adjustment approach

Currently, the most crucial economic and ecological issues are related to environmental degradation and sustainability. On this backdrop, this paper examines the impact of financial globalization and natural resource rent on load capacity factor, using the novel dual adjustment approach and time-frequency domain causality approaches, in the case of India. This study contributes to the extant body of knowledge in the area of environmental economics. First, it is the first attempt to analyze the factors responsible for load capacity factor, specifically for India. As such, studies on environmental concerns on both the supply and demand sides are put into consideration. Empirical results show that only renewable energy consumption lessens the load capacity factor, while economic growth and financial globalization are positively correlated with the load capacity factor, and natural resource rent is insignificant in the short run. In the long run, only economic growth is negatively correlated with load capacity factor, while the other series positively influence load capacity factor. To reap greater ecological merits, policymakers should focus on transitioning from conventional non-renewable energy sources that contribute to rising carbon emissions to more cost-effective and dependable renewable sources of energy that support sustainable growth and a healthy environment.

Determinants of load capacity factor in South Korea: does structural change matter?

By likening biocapacity and ecological footprint, the load capacity factor follows a specified ecological threshold, permitting for an in-depth analysis of ecological damage. It can be seen that as the load capacity factor is reduced, the ecological damage intensifies. Until now, scholars have used carbon dioxide, ecological footprint, nitrogen oxide, sulfur dioxide, and other indices to objectively examine ecological problems. The utilization of these metrics can cause the supply side of ecological concerns to be overlooked. To make up for this weakness, this paper evaluates the impact of structural change and trade globalization on the load capacity factor. The research also considers other drivers of load capacity factors such as economic growth and energy. We utilized the nonparametric such as nonparametric causality and quantile-on-quantile (QQ) regression approaches to scrutinize these interconnections for South Korea between 1970 and 2018. The findings from the QQ approach disclosed that in the majority of the quantiles, the influence of economic growth, structural change, energies (renewable and nonrenewable), and trade globalization mitigate the load capacity factor. Moreover, the nonparametric causality test divulged that in variance and mean, all the independent variables can predict the load capacity factor. Policy proposals for South Korea's sustainable development are offered based on the findings.

Do renewable energy and health expenditures improve load capacity factor in the USA and Japan? A new approach to environmental issues

This study performs the augmented autoregressive distributed lag (ARDL) approach to investigate the impact of renewable energy and health expenditures on the load capacity factor in Japan and the United States of America (USA) over the period 1982-2016. The load capacity factor is obtained by dividing the biocapacity into the ecological footprint and provides a general picture of environmental quality. Thus, the study departs from the current literature by approaching environmental problems from a broader perspective. The results of this study confirm the existence of cointegration in the USA and Japan. The long-run estimates demonstrate that renewable energy and health expenditures improve environmental quality in the USA, while renewable energy has a positive but insignificant impact on load capacity factor in Japan. It has also been determined economic growth causes significant environmental degradation, which cannot be compensated by renewables and health expenditures in both countries. According to these findings, Japanese and American governments should promote green growth, support the increase in health expenditures, and diversify renewable energy sources to reduce environmental pressure.