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

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A Correction to this article was published on 05 July 2023

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Abstract

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.

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Change history

Notes

  1. “The G7 countries include Germany, Italy, Canada, France, Japan, the USA, and the UK. The E7 countries include Brazil, India, China, Indonesia, Mexico, Russia, and Turkey.”

  2. For an in-depth understanding of the load capacity factor, see Pata and Balsalobre-Lorente (2022) and Awosusi et al. (2022).

  3. “For ensuring brevity, the correlation matrices and variance inflation factor outputs are not reported. The related tables can be made available following a reasonable request to the corresponding author.”

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Authors and Affiliations

  1. College of Business Administration, Prince Sattam Bin Abdulaziz University, Alkharj, Saudi Arabia

    Uzma Khan & Aarif Mohammad Khan

  2. Department of Business Administration, University of Technology and Applied Sciences, Salalah, Oman

    Mohammad Shahfaraz Khan

  3. Department of Law, College of Humanity Sciences, University of Raparin, Ranya, Iraq

    Paiman Ahmed

  4. International Relations and Diplomacy Department, Faculty of Administrative Sciences and Economics, Tishk International University, Erbil, Iraq

    Paiman Ahmed

  5. Business Studies Department, University of Technology and Applied Sciences, Ibri, Oman

    Ansarul Haque

  6. Department of Sociology, Varendra University, Rajshahi, Bangladesh

    Rawnaq Ara Parvin

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UK and AMK wrote the original draft, conducted the econometric analysis, analyzed the findings, reviewed, and edited the final draft. MSK and PA conceptualized, compiled the literature review, and generated the graphical illustrations. AH and RAP wrote the original draft, compiled the literature review, and contributed in the methodology section.

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Khan, U., Khan, A.M., Khan, M.S. et al. Are the impacts of renewable energy use on load capacity factors homogeneous for developed and developing nations? Evidence from the G7 and E7 nations. Environ Sci Pollut Res 30, 24629–24640 (2023). https://doi.org/10.1007/s11356-022-24002-8

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