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Do renewable energy and health expenditures improve load capacity factor in the USA and Japan? A new approach to environmental issues

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  • Ugur Korkut Pata

    (Osmaniye Korkut Ata University)

Abstract

This study performs the augmented autoregressive distributed lag (ARDL) approach to investigate the impact of renewable energy and health expenditures on the load capacity factor in Japan and the United States of America (USA) over the period 1982–2016. The load capacity factor is obtained by dividing the biocapacity into the ecological footprint and provides a general picture of environmental quality. Thus, the study departs from the current literature by approaching environmental problems from a broader perspective. The results of this study confirm the existence of cointegration in the USA and Japan. The long-run estimates demonstrate that renewable energy and health expenditures improve environmental quality in the USA, while renewable energy has a positive but insignificant impact on load capacity factor in Japan. It has also been determined economic growth causes significant environmental degradation, which cannot be compensated by renewables and health expenditures in both countries. According to these findings, Japanese and American governments should promote green growth, support the increase in health expenditures, and diversify renewable energy sources to reduce environmental pressure.

Suggested Citation

  • Ugur Korkut Pata, 2021. "Do renewable energy and health expenditures improve load capacity factor in the USA and Japan? A new approach to environmental issues," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(9), pages 1427-1439, December.
    • Handle: RePEc:spr:eujhec:v:22:y:2021:i:9:d:10.1007_s10198-021-01321-0
    DOI: 10.1007/s10198-021-01321-0
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    3. Rabab Triki & Bassem Kahouli & Kais Tissaoui & Haykel Tlili, 2023. "Assessing the Link between Environmental Quality, Green Finance, Health Expenditure, Renewable Energy, and Technology Innovation," Sustainability, MDPI, vol. 15(5), pages 1-18, February.
    4. Kartal, Mustafa Tevfik & Ghosh, Sudeshna & Adebayo, Tomiwa Sunday, 2023. "Renewable energy effect on economy and environment: The case of G7 countries through novel bootstrap rolling window approach," Renewable Energy, Elsevier, vol. 216(C).
    5. Rehana Firdous & Sarvjeet Kaur Chatrath & Atif Khan Jadoon & Munawar Iqbal & Syeda Azra Batool & Zameer Ul Hasan, 2023. "Exploring Dynamic Nexus between Economic Growth, Environmental Degradation, and Public Health in Pakistan: A Moderated Mediation Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 241-249, January.
    6. Shang, Yunfeng & Razzaq, Asif & Chupradit, Supat & Binh An, Nguyen & Abdul-Samad, Zulkiflee, 2022. "The role of renewable energy consumption and health expenditures in improving load capacity factor in ASEAN countries: Exploring new paradigm using advance panel models," Renewable Energy, Elsevier, vol. 191(C), pages 715-722.
    7. Pata, Ugur Korkut & Ertugrul, Hasan Murat, 2023. "Do the Kyoto Protocol, geopolitical risks, human capital and natural resources affect the sustainability limit? A new environmental approach based on the LCC hypothesis," Resources Policy, Elsevier, vol. 81(C).
    8. Stef, Nicolae & Başağaoğlu, Hakan & Chakraborty, Debaditya & Ben Jabeur, Sami, 2023. "Does institutional quality affect CO2 emissions? Evidence from explainable artificial intelligence models," Energy Economics, Elsevier, vol. 124(C).
    9. Pata, Ugur Korkut & Isik, Cem, 2021. "Determinants of the load capacity factor in China: A novel dynamic ARDL approach for ecological footprint accounting," Resources Policy, Elsevier, vol. 74(C).
    10. Ugur Korkut Pata & Banu Tanriover, 2023. "Is the Load Capacity Curve Hypothesis Valid for the Top Ten Tourism Destinations?," Sustainability, MDPI, vol. 15(2), pages 1-15, January.
    11. Kartal, Mustafa Tevfik & Pata, Ugur Korkut & Kılıç Depren, Serpil & Depren, Özer, 2023. "Effects of possible changes in natural gas, nuclear, and coal energy consumption on CO2 emissions: Evidence from France under Russia’s gas supply cuts by dynamic ARDL simulations approach," Applied Energy, Elsevier, vol. 339(C).
    12. Hossain, Mohammad Razib & Rana, Md. Jaber & Saha, Sourav Mohan & Haseeb, Mohammad & Islam, Md. Sayemul & Amin, Md. Ruhul & Hossain, Md. Emran, 2023. "Role of energy mix and eco-innovation in achieving environmental sustainability in the USA using the dynamic ARDL approach: Accounting the supply side of the ecosystem," Renewable Energy, Elsevier, vol. 215(C).

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    More about this item

    Keywords

    Augmented ARDL; Ecological footprint; Health expenditures; Load capacity factor; Renewable energy;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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