Journal of Renewable and New Energy

The impact of Green Technology on the Load Capacity Factor (LCF)

Document Type : Original Article

Authors

Seyyed Mohammad Ghaem Zabihi 1
Mohammad Hossein Mahdavi Adeli 2
Fatemeh, Akbari 3

1 Ph.D. Candidate in Economics, Department of Economics, Ferdowsi University of Mashhad, Mashhad, Iran

2 Professor, Department of Economics, Ferdowsi University of Mashhad, Mashhad, Iran

3 M.A student in Economics, Department of Economics, Ferdowsi University of Mashhad, Mashhad, Iran

https://doi.org/10.22034/jrenew.2025.225994
Abstract
Today, most countries worldwide seek to reduce environmental burdens, as climate change has reached a level that poses a serious threat to humanity. In this context, the load capacity factor (LCF) serves as a comprehensive measure of environmental sustainability by considering both biological capacity and ecological footprint. However, limited studies have explored the role of green technologies in influencing LCF, leaving a gap in the literature on their potential impact. Accordingly, this study employs panel quantile regression to investigate the effect of green technologies (LNGT) on LCF in G7 countries from 2000 to 2020. The results indicate that LNGT positively impacts LCF across most quantiles, except in the first and fifth deciles. Additionally, gross domestic product (LNGDP) exerts a statistically significant positive effect on LCF from the first to the sixth decile. Likewise, per capita consumption of renewable energy (LNREN) and natural resource rent (LNNRP) positively contribute to LCF, highlighting their importance in enhancing environmental sustainability. This study confirms the hypothesis that LNGT has a positive and significant effect on LCF in G7 countries. Furthermore, the findings provide valuable policy recommendations for promoting equitable and sustainable development. These insights can help policymakers design effective strategies for improving environmental sustainability in both developed nations and resource-dependent economies such as Iran. By emphasizing the role of green technologies, this study contributes to the ongoing discourse on achieving long-term ecological balance while supporting economic growth.

Keywords

Green Technology
Load Capacity Factor
Quantile Panel Regression
Group 7 Countries

Subjects

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Journal of Renewable and New Energy
Volume 12, Issue 2 - Serial Number 24
September 2025
Pages 139-150

  • Receive Date 16 June 2024
  • Revise Date 02 May 2025
  • Accept Date 10 May 2025

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