Do investments in green energy, energy efficiency, and nuclear energy R&D improve the load capacity factor? An augmented ARDL approach

Abstract

Renewable energy, energy efficiency, and nuclear energy research and development (RER, EER, and NER) budgets are immensely important to fulfill sustainable development goals 7, 9, and 13, by accelerating energy innovation, energy transition, and climate control. The literature on the drivers of the load capacity factor (LCF), a recently developed ecological quality measure, is mounting; however, the roles of energy investments in the LCF are largely unknown. Accordingly, this study assesses the impacts of RER, EER, NER, and financial globalization (FIG) on the LCF using data from 1974 to 2018 for Germany. Advanced and reliable time series tests (Augmented ARDL, DOLS, and Fourier causality) are adopted to analyze cointegration, long-run impacts, and causal connections. The outcomes unveil that both green energy and energy efficiency R&D promote the LCF by enhancing ecological quality. However, the positive impact of NER on the LCF is found to be weaker than the impacts of RER and EER. FIG curbs ecological degradation by expanding the LCF. Additionally, the U-shaped connection between economic growth (ECG) and the LCF confirms the load capacity curve. Therefore, policymakers should focus on RER and EER to preserve the environment and promote sustainable growth.

Keywords

Green Energy R&D / Energy Efficiency R&D / Nuclear Energy R&D / Financial Globalization / LCF

CRediT authorship contribution statement

Xin Jin: Data curation, Methodology, Writing – original draft, Writing – review & editing, Software. Zahoor Ahmed: Conceptualization, Writing – review & editing, Writing – original draft. Ugur Korkut Pata: Formal analysis, Writing – review & editing, Writing – original draft. Mustafa Tevfik Kartal: Investigation, Writing – review & editing, Writing – original draft. Sinan Erdogan: Writing – review & editing, Writing – original draft.

Declaration of Competing Interest

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

Acknowledgments

This work was supported by the Projects of humanities and social sciences of Cultivating plan for 1000 young and middle-aged backbone teachers in Guangxi Universities—Research on the impact of environmental regulation evolution on corporate green and green investment in the dual-carbon environment (Grant No. 2022QGRW059).

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