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

Author

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  • Andrew Adewale Alola

    (CREDS-Centre for Research on Digitalization and Sustainability, Inland Norway University of Applied Sciences, 2418 Elverum, Norway
    Faculty of Economics, Administrative and Social Sciences, Nisantasi University, Istanbul 34398, Turkey)

  • Oktay Özkan

    (Department of Business Administration, Faculty of Economics and Administrative Sciences, Tokat Gaziosmanpasa University, Tokat 60250, Turkey)

  • Ojonugwa Usman

    (Economics and Finance Application and Research Center, İstanbul Ticaret University, Istanbul 34445, Turkey)

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 CO 2 emissions and other significant climatic changes in India.

Suggested Citation

  • Andrew Adewale Alola & Oktay Özkan & Ojonugwa Usman, 2023. "Role of Non-Renewable Energy Efficiency and Renewable Energy in Driving Environmental Sustainability in India: Evidence from the Load Capacity Factor Hypothesis," Energies, MDPI, vol. 16(6), pages 1-16, March.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:6:p:2847-:d:1101356
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