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Assessing the role of renewable-based energy innovation, economic growth, and political risk in shaping Japan's load capacity factor: A wavelet-based quantile analysis

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  • Awosusi, Abraham Ayobamiji
  • Ozsahin, Dilber Uzun

Abstract

Understanding how renewable-based-energy innovation influences ecological sustainability remains a critical yet underexplored issue. This study fills this gap by examining the effects of renewable-based-energy innovation, political risk, and economic growth on load capacity factor (LF) in Japan. It further advances existing literature through a disaggregated analysis of renewable-based-energy innovation specifically solar, wind, and biomass innovation, to assess their individual environmental impacts. Given the non-normal distribution of the dataset and the need to capture heterogeneous relationships, this study used recently introduced wavelet based-quantile methodologies: wavelet-quantile Phillips-Perron, wavelet-quantile regression and wavelet-quantile correlation. The empirical results indicate that biomass and solar innovations enhance ecological quality by increasing LF across all quantiles and horizons, while economic growth reduces ecological quality, reflecting ongoing environmental pressures from expansion. Wind innovation shows a negative short-term impact but becomes beneficial in the medium and long terms, reflecting technological gains. Conversely, political risk exerts mixed short-term effects but negatively affects ecological quality in the long term, indicating that persistent instability undermines environmental governance. These findings emphasize the need to expand investment in biomass and solar technologies, introduce short-term support for wind energy to manage initial ecological costs, and strengthen political and institutional stability for sustained ecological gains.

Suggested Citation

  • Awosusi, Abraham Ayobamiji & Ozsahin, Dilber Uzun, 2026. "Assessing the role of renewable-based energy innovation, economic growth, and political risk in shaping Japan's load capacity factor: A wavelet-based quantile analysis," Renewable Energy, Elsevier, vol. 262(C).
    • Handle: RePEc:eee:renene:v:262:y:2026:i:c:s0960148126002259
    DOI: 10.1016/j.renene.2026.125400
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    References listed on IDEAS

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    1. Litu Sethi & Biswanath Behera & Narayan Sethi, 2024. "Do green finance, green technology innovation, and institutional quality help achieve environmental sustainability? Evidence from the developing economies," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(3), pages 2709-2723, June.
    2. Sinan Erdogan, 2024. "Linking natural resources and environmental sustainability: A panel data approach based on the load capacity curve hypothesis," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(4), pages 3182-3194, August.
    3. Morteza Ghobakhloo & Mohammad Iranmanesh & Andrius Grybauskas & Mantas Vilkas & Monika Petraitė, 2021. "Industry 4.0, innovation, and sustainable development: A systematic review and a roadmap to sustainable innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4237-4257, December.
    4. Arshian Sharif & Najia Saqib & Kangyin Dong & Syed Abdul Rehman Khan, 2022. "Nexus between green technology innovation, green financing, and CO2 emissions in the G7 countries: The moderating role of social globalisation," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1934-1946, December.
    5. Abraham Ayobamiji Awosusi & Tomiwa Sunday Adebayo & Dervis Kirikkaleli & Husam Rjoub & Mehmet Altuntaş, 2024. "Evaluating the determinants of load capacity factor in Japan: The impact of economic complexity and trade globalization," Natural Resources Forum, Blackwell Publishing, vol. 48(3), pages 743-762, August.
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