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Determinants of Load Capacity Factor in Nigeria: Implications for Sustainable Development

Author

Listed:
  • Dada James Temitope

    (Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria)

  • Tabash Mosab I.

    (College of Business, Al Ain University, Al Ain, United Arab Emirates)

  • Al-Faryan Mamdouh Abdulaziz Saleh

    (The Saudi Economic Association, Riyadh, Saudi Arabia)

  • Akinbobola Temidayo Oladiran

    (Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria)

Abstract

Research purpose Motivated by the growing level of ecological degradation and the need to accomplish sustainable development, this study examines the influence of energy consumption, institutions, urbanization, education, and economic growth on the load capacity factor (LCF) of Nigeria. Methodology The study uses data from the Nigerian time series between 1984 and 2020. The Autoregressive Distributed Lag (ARDL) is utilized to analyse the level of cointegration and short- and long-run impact among the variables. Furthermore, Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Canonical Cointegrating Regression (CCR) were used as robustness checks for the long-run estimates of ARDL. Findings The results suggest that in the short run, per capita income, institutions, and urbanization positively influence the LCF. However, in the long run, per capita and institutions have an insignificant effect on the LCF. On the other hand, energy consumption and primary school enrolment negatively impact the LCF in both periods. Similarly, urbanization has a negative long-run influence on the LCF, thus decreasing the environmental quality. Practical implications Based on the study's outcome, the study offers significant policy implications, such as changing consumption and production patterns to green ones to achieve green growth and sustainable development.

Suggested Citation

  • Dada James Temitope & Tabash Mosab I. & Al-Faryan Mamdouh Abdulaziz Saleh & Akinbobola Temidayo Oladiran, 2025. "Determinants of Load Capacity Factor in Nigeria: Implications for Sustainable Development," Economics and Culture, Sciendo, vol. 22(1), pages 17-33.
    • Handle: RePEc:vrs:ecocul:v:22:y:2025:i:1:p:17-33:n:1002
    DOI: 10.2478/jec-2025-0002
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    References listed on IDEAS

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    1. Biswas, Amit K. & Farzanegan, Mohammad Reza & Thum, Marcel, 2012. "Pollution, shadow economy and corruption: Theory and evidence," Ecological Economics, Elsevier, vol. 75(C), pages 114-125.
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    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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