Determinants of Load Capacity Factor in Nigeria: Implications for Sustainable Development

Dada James Temitope (), Tabash Mosab I. (), Al-Faryan Mamdouh Abdulaziz Saleh () and Akinbobola Temidayo Oladiran ()
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Dada James Temitope: Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria
Tabash Mosab I.: College of Business, Al Ain University, Al Ain, United Arab Emirates
Al-Faryan Mamdouh Abdulaziz Saleh: The Saudi Economic Association, Riyadh, Saudi Arabia
Akinbobola Temidayo Oladiran: Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria

Economics and Culture, 2025, vol. 22, issue 1, 17-33

Abstract: Research purpose Motivated by the growing level of ecological degradation and the need to accomplish sustainable development, this study examines the influence of energy consumption, institutions, urbanization, education, and economic growth on the load capacity factor (LCF) of Nigeria. Methodology The study uses data from the Nigerian time series between 1984 and 2020. The Autoregressive Distributed Lag (ARDL) is utilized to analyse the level of cointegration and short- and long-run impact among the variables. Furthermore, Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Canonical Cointegrating Regression (CCR) were used as robustness checks for the long-run estimates of ARDL. Findings The results suggest that in the short run, per capita income, institutions, and urbanization positively influence the LCF. However, in the long run, per capita and institutions have an insignificant effect on the LCF. On the other hand, energy consumption and primary school enrolment negatively impact the LCF in both periods. Similarly, urbanization has a negative long-run influence on the LCF, thus decreasing the environmental quality. Practical implications Based on the study's outcome, the study offers significant policy implications, such as changing consumption and production patterns to green ones to achieve green growth and sustainable development.

Keywords: Load capacity factor; energy consumption; institutions; urbanization; education; economic growth; SDGs (search for similar items in EconPapers)
JEL-codes: O10 O44 O52 Q01 Q40 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecocul:v:22:y:2025:i:1:p:17-33:n:1002

DOI: 10.2478/jec-2025-0002

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