Do technological innovation, natural resources and stock market development promote environmental sustainability? Novel evidence based on the load capacity factor

Wen-Xuan Zhao, Ahmed Samour, Kefu Yi and Mamdouh Abdulaziz Sa Al-Faryan

Resources Policy, 2023, vol. 82, issue C

Abstract: As several nations currently expect it, renewable energy has the capacity to play a significant role in energy transition initiatives. Without considerably increasing renewable energy consumption, achieving sustainable development and curbing global climate issues would become more difficult. This research explores the impact of renewable energy, technological innovation, stock market development, and natural resources on load capacity factor (LCF) in BRICS-T nations. This paper utilized second-generation techniques between 1990 and 2018. These approaches are beneficial for generating complete and trustworthy estimates by accounting for CD, parameter endogeneity, serial correlation and slope heterogeneity, which are overlooked in traditional approaches. The results from the Cross-sectional-autoregressive-distributed lag (CS-ARDL) show natural resources led to a negative effect on environmental quality by decreasing the level of LCF by 0.1814% in the long run and 0.1409% in the short run. Besides, the outcomes illustrated that a 1% significant and positive increase in stock market development negatively affects the environmental quality by decreasing the level of LCF by 0.1409%. However, regression results demonstrated that natural resources contribute to decreased ecological quality while renewable energy consumption enhances environmental quality. The empirical outcomes of the causality test illustrated uni-directional causality from GDP to load capacity factor. In addition, the results showed that there is un-directional causality from renewable and non-renewable energy utilization and stock market development to LCF. The paper provides beneficial policy recommendations for achieving equitable and sustainable development in BRICS-T nations.

Keywords: Load capacity factor; Renewable energy consumption; Technological innovation; Stock market development; BRICS-T nations (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420723001058
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:82:y:2023:i:c:s0301420723001058

DOI: 10.1016/j.resourpol.2023.103397

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().