Role of Non-Renewable Energy Efficiency and Renewable Energy in Driving Environmental Sustainability in India: Evidence from the Load Capacity Factor Hypothesis

Abstract

Policymakers and environmental scientists have proposed numerous measures toward achieving a sustainable environment. Some of these measures include the efficient use of energy and a clean energy transition. This study empirically investigates the role of non-renewable energy efficiency and renewable energy utilization in driving environmental sustainability in India over the period from 1965 to 2018. Using the approach of the Dynamic Autoregressive Distributed Lag (DyARDL) simulations, the empirical evidence shows that non-renewable energy efficiency and renewable energy utilization promote environmental sustainability through an increase in the load capacity factor. The effects of financial development and trade impede environmental sustainability through a decrease in the load capacity factor. The results further show that the relationship between income and load capacity factor is characterized by an inverted U-shape. This suggests that the load capability curve (LCC) hypothesis is not valid for India. Given the overall findings of this study, it is suggested that policymakers should promote energy efficiency and renewable energy technologies as the ultimate policy measure to mitigate the accumulation of CO2 emissions and other significant climatic changes in India.

Are Natural Resource Rents and Renewable Energy Consumption Solutions for Environmental Degradation? Fresh Insights from a Modified Ecological Footprint Model

“…Accordingly, a 1% increase in REC reduces the EFPI by −0.166% (0.1), −0.175% (0.2), −0.185% (0.3), −0.193% (0.4), −0.200% (0.5), −0.208% (0.6), −0.216% (0.7), −0.224% (0.8), and −0.238% (0.9). These findings are consistent with the results of Adebayo [48], Adebayo and Samour [52], Alola et al [53], Destek and Sinha [44], Dogan and Pata [49], Fakher and Inglesi-Lotz [50], Shang et al [51], and Sharif et al [45]. However, these findings contradict the results of the study carried out by Xu et al [54].…”

“…The empirical outcome indicates that renewable energy consumption plays an active role in improving the environmental quality. Employing the D-ARDL approach, Alola et al [53] found that renewable energy consumption supported environmental sustainability by positively influencing the environmental quality in India during the period 1965-2018.…”

Energy security-related risks and the quest to attain USA’s net-zero emissions targets by 2050: a dynamic ARDL simulations modeling approach

“…Environmental degradation is the endogenous variable. By following a study by Alola et al ( 2023a ) we measure environmental degradation with the LCF , which considerably compares the existing biocapacity with ecological footprint. By this measurement, we demonstrate a certain ecological threshold, which means that its increases correspond to a decrease in environmental degradation and vice versa.…”

“…In addition, the nature and patterns of the impact of renewable energy, FDI , economic expansion, and urbanization on LCF are also examined. While only a few studies have implemented LCF as an environmental indicator for the USA (Pata 2021 ; Pata et al 2023b ; Alola et al 2023a ), the current study expands the literature by accommodating more potential and key indicators with the use of recently developed dynamic simulated autoregressive distributed lag method (DSARDL). Specifically, our study contributes to the literature by applying the LCF which measures both the demand and supply aspects of the environment.…”

“…With the USA’s vast economic profile, i.e., the world’s largest economy in terms of the gross domestic product (GDP), the country’s climate actions such as the clean energy transition and energy efficiency programs communicate a pathway to a successful or realization of global carbon neutrality target by 2050. However, the deficit in the USA’s biocapacity which also reflects the disproportionate ratio of biocapacity to ecological footprint, otherwise known as the load capacity factor ( LCF ), is increasingly constituting a setback to the country’s environmental sustainability (see Alola et al 2023a ). Generally, environmental sustainability has increasingly been associated with macroeconomic, socioeconomic, geographical, and other non-economic and energy-related factors.…”