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ORIGINAL RESEARCH article

Front. Environ. Sci.
Sec. Environmental Economics and Management
Volume 12 - 2024 | doi: 10.3389/fenvs.2024.1447808

How do energy efficiency, technology, natural resources and globalization impact environmental sustainability? Fresh evidence from Load Capacity Curve Theory

Provisionally accepted
Zhangfa Liu Zhangfa Liu 1Usman Mehmood Usman Mehmood 2*Abdelmohsen A. Nassani Abdelmohsen A. Nassani 3
  • 1 Dongchang College, Liaocheng University, Liaocheng, Shandong Province, China
  • 2 Bahçeşehir University, Istanbul, Türkiye
  • 3 College of Business Administration, King Saud University, Riyadh, Saudi Arabia

The final, formatted version of the article will be published soon.

    For sustainable development, the roles of energy efficiency and renewable energy is undeniable. We are passing through the era of globalization and economies are expanding their economic activities across borders. In this scenario, nations are striving for sustainable economic development without hurting the climatic conditions. Therefore, this study employs Bai and Carrion-i-Silvestre unit root test and Westerlund cointegration tests. The variables were found to have mix order of integration and Westerlund test shows cointegration in the panel data. The Method of Moments Quantile Regression (MMQR) is used to ascertain the effects of energy efficiency and economic, environmental, and globalization factors on the load capacity factor (LCF), a measure of environmental quality in G-20 countries. Key findings supporting the Load Capability Curve (LCC) theory show that while initial economic growth (GDP) has a negative impact (coefficient of -0.035 at the median quantile), advanced economic growth (GDP²) improves LCF (coefficient of 0.513 at the 90th quantile and 0.388 at the median). The median quantile coefficient of 0.055 indicates a positive association between the consumption of renewable energy and LCF. Natural resources exhibit a coefficient of 0.061 at the 90th quantile and 0.037 at the median. However, there are drawbacks to both financial globalization and contemporary environmental technology; their coefficients at the median quantile are -0.021 and -0.058, respectively. The work suggests targeted strategies, including more stringent environmental legislation, backing for renewable energy, sustainable resource management, advancements in environmental technologies, regulation of financial globalization, and bolstering of international cooperation.

    Keywords: energy efficiency, Globalization, Renewable Energy, Load capacity curve, MMQR, G-20 countries

    Received: 13 Jun 2024; Accepted: 09 Jul 2024.

    Copyright: © 2024 Liu, Mehmood and Nassani. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence: Usman Mehmood, Bahçeşehir University, Istanbul, 34353, Türkiye

    Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.