New insights from the STIPART model on how environmental-related technologies, natural resources and the use of the renewable energy influence load capacity factor

Abstract

The rapid development in environmental-related technologies, economic growth and natural resources has promoted many undesirable environmental influences that affect living standards and human health. Consequently, the present research employed an inclusive indicator to quantify ecological eminence known as the load capacity factor. Considering this view, the existing body of literature has not provided a sufficiently supportive indication to discover the factors influencing the load capacity factor in terms of ecological excellence. To do this, the present study employs various panel data estimators and causality tests considering cross-sectional dependence and slope heterogeneity for the period 1990–2019 to analyze the environmental impacts of environmental technologies, economic growth, natural resources, renewable energy consumption, and urbanization for 17 Asian-Pacific Economic Cooperation (APEC) countries. The study results suggest that economic growth reduces environmental quality.In contrast, natural resources, technological development, urbanization, and renewable energy increase the load capacity factor, which indicates environmental sustainability while considering nature's supply and demand aspects. Based on these findings, APEC policymakers should take advantage of technological development, urbanization, and renewable energy. They should transform their current economic growth models into an environmentally friendly structure to achieve their environmental goals and contribute to a sustainable world order.