IDEAS home Printed from https://ideas.repec.org/a/wly/natres/v48y2024i3p743-762.html

Evaluating the determinants of load capacity factor in Japan: The impact of economic complexity and trade globalization

Author

Listed:
  • Abraham Ayobamiji Awosusi
  • Tomiwa Sunday Adebayo
  • Dervis Kirikkaleli
  • Husam Rjoub
  • Mehmet Altuntaş

Abstract

Sustainable growth and the reduction of environmental pressures are important priorities that are issues of concern for both developed and developing countries. However, while carbon emissions and ecological footprint are commonly used by researchers in the context of environmental deterioration, a broader and more extensive metric for ecological quality is considered necessary. From this perspective, the load capacity factor provides a more detailed sustainable environment appraisal by simultaneously considering biocapacity and ecological footprint. Limited studies have examined the determinants of load capacity factor (LCAP). This survey attempts to fill the gap, using the case of Japan. Employing the dynamic ARDL approaches, the present research investigates the effect of renewable energy usage, economic growth, economic complexity, financial development, and trade globalization on load capacity factor in Japan for the period between 1980 and 2017. The empirical evidence indicates that economic complexity, economic growth, and financial development adversely impact LCAP, whereas renewable energy usage and trade globalization positively affect LCAP. Hence, we recommend that it is essential for Japan to attain self‐sufficiency in essential goods and minimize its reliance on the rest of the world. Furthermore, policymakers should capitalize on the benefits of trade globalization by adopting additional measures aimed at facilitating trade liberalization.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:natres:v:48:y:2024:i:3:p:743-762
    DOI: 10.1111/1477-8947.12334
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1477-8947.12334
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1477-8947.12334?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Abdul Rehman & Magdalena Radulescu & Hengyun Ma & Vishal Dagar & Imran Hussain & Muhammad Kamran Khan, 2021. "The Impact of Globalization, Energy Use, and Trade on Ecological Footprint in Pakistan: Does Environmental Sustainability Exist?," Energies, MDPI, vol. 14(17), pages 1-16, August.
    2. Soren Jordan & Andrew Q. Philips, 2018. "Cointegration testing and dynamic simulations of autoregressive distributed lag modelsJournal: Stata Journal," Stata Journal, StataCorp LLC, vol. 18(4), pages 902-923, December.
    3. Mihai Ioan Mutascu & Claudiu Tiberiu Albulescu & Nicholas Apergis & Cosimo Magazzino, 2022. "Do gasoline and diesel prices co-move? Evidence from the time–frequency domain," Post-Print hal-03858096, HAL.
    4. 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.
    5. repec:bla:obuest:v:63:y:2001:i:5:p:535-58 is not listed on IDEAS
    6. James Temitope Dada & Adams Adeiza & Noor Azizi Ismail & Arnaut Marina, 2023. "Correction to: investigating the link between economic growth, financial development, urbanization, natural resources, human capital, trade openness and ecological footprint: evidence from Nigeria," Journal of Bioeconomics, Springer, vol. 25(2), pages 145-145, August.
    7. Magazzino, Cosimo & Mele, Marco & Schneider, Nicolas, 2021. "A D2C algorithm on the natural gas consumption and economic growth: Challenges faced by Germany and Japan," Energy, Elsevier, vol. 219(C).
    8. Aladejare, Samson Adeniyi, 2022. "Natural resource rents, globalisation and environmental degradation: New insight from 5 richest African economies," Resources Policy, Elsevier, vol. 78(C).
    9. Zhao, Wen-Xuan & Samour, Ahmed & Yi, Kefu & Al-Faryan, Mamdouh Abdulaziz Saleh, 2023. "Do technological innovation, natural resources and stock market development promote environmental sustainability? Novel evidence based on the load capacity factor," Resources Policy, Elsevier, vol. 82(C).
    10. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    11. Anton, Sorin Gabriel & Afloarei Nucu, Anca Elena, 2020. "The effect of financial development on renewable energy consumption. A panel data approach," Renewable Energy, Elsevier, vol. 147(P1), pages 330-338.
    12. Ni, Zehua & Yang, Jingyi & Razzaq, Asif, 2022. "How do natural resources, digitalization, and institutional governance contribute to ecological sustainability through load capacity factors in highly resource-consuming economies?," Resources Policy, Elsevier, vol. 79(C).
    13. Muhammad Zahid Rafique & Abdul Majeed Nadeem & Wanjun Xia & Majid Ikram & Hafiz Muhammad Shoaib & Umer Shahzad, 2022. "Does economic complexity matter for environmental sustainability? Using ecological footprint as an indicator," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 4623-4640, April.
    14. 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.
    15. Junsoo Lee & Mark C. Strazicich, 2001. "Break Point Estimation and Spurious Rejections With Endogenous Unit Root Tests," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(5), pages 535-558, December.
    16. Jahanger, Atif & Usman, Muhammad & Murshed, Muntasir & Mahmood, Haider & Balsalobre-Lorente, Daniel, 2022. "The linkages between natural resources, human capital, globalization, economic growth, financial development, and ecological footprint: The moderating role of technological innovations," Resources Policy, Elsevier, vol. 76(C).
    17. Ahsan Anwar & Avik Sinha & Arshian Sharif & Muhammad Siddique & Shoaib Irshad & Waseem Anwar & Summaira Malik, 2022. "RETRACTED ARTICLE: The nexus between urbanization, renewable energy consumption, financial development, and CO2 emissions: evidence from selected Asian countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6556-6576, May.
    18. Usman, Muhammad & Balsalobre-Lorente, Daniel, 2022. "Environmental concern in the era of industrialization: Can financial development, renewable energy and natural resources alleviate some load?," Energy Policy, Elsevier, vol. 162(C).
    19. Andrew Adewale Alola & Oktay Özkan & Ojonugwa Usman, 2023. "Role of Non-Renewable Energy Efficiency and Renewable Energy in Driving Environmental Sustainability in India: Evidence from the Load Capacity Factor Hypothesis," Energies, MDPI, vol. 16(6), pages 1-16, March.
    20. Emad Kazemzadeh & José Alberto Fuinhas & Matheus Koengkan, 2022. "The impact of income inequality and economic complexity on ecological footprint: an analysis covering a long-time span," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 11(2), pages 133-153, April.
    21. Usman, Muhammad & Balsalobre-Lorente, Daniel & Jahanger, Atif & Ahmad, Paiman, 2022. "Pollution concern during globalization mode in financially resource-rich countries: Do financial development, natural resources, and renewable energy consumption matter?," Renewable Energy, Elsevier, vol. 183(C), pages 90-102.
    22. Colin Raymond & Radley M. Horton & Jakob Zscheischler & Olivia Martius & Amir AghaKouchak & Jennifer Balch & Steven G. Bowen & Suzana J. Camargo & Jeremy Hess & Kai Kornhuber & Michael Oppenheimer & A, 2020. "Understanding and managing connected extreme events," Nature Climate Change, Nature, vol. 10(7), pages 611-621, July.
    23. 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).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sefa ÖZBEK & Serkan ŞAHİN, 2025. "Moderating role of globalization in agriculture–environment nexus: insights from the inverted load capacity factor," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 13(1), pages 1-27, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joshua Chukwuma Onwe & Emmanuel Uche & Karambir Singh Dhayal & Iyke Uwazie Uwazie & Kingsley Nze Ashibogwu, 2024. "Advocating green economy in India: The tug of war among income inequality, export diversification, and environmental quality," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 4879-4894, October.
    2. Bilgehan Tekin & Sadik Aden Dirir & Kadir Aden, 2025. "Integrating sustainable finance into energy policies: A comprehensive study on the influence of green investments on energy performance in OECD nations," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(3), pages 2883-2911, July.
    3. Boţa-Avram, Cristina & Apostu, Simona Andreea & Ivan, Raluca & Achim, Monica Violeta, 2024. "Exploring the impact of macro-determinant factors on energy resource depletion: Evidence from a worldwide cross-country panel data analysis," Energy Economics, Elsevier, vol. 130(C).
    4. Li, Sheng & Tauni, Muhammad Zubair & Afshan, Sahar & Dong, Xinwen & Abbas, Shujaat, 2024. "Moving towards a sustainable environment in the BRICS Economies: What are the effects of financial development, renewable energy and natural resources within the LCC hypothesis?," Resources Policy, Elsevier, vol. 88(C).
    5. Erti Jiaduo & Md. Golam Kibria & Nazhat Nury Aspy & Ehsan Ullah & Md. Emran Hossain, 2023. "The Impact of Agricultural Employment and Technological Innovation on the Environment: Evidence from BRICS Nations Considering a Novel Environmental Sustainability Indicator," Sustainability, MDPI, vol. 15(20), pages 1-21, October.
    6. Ullah, Sami & Lin, Boqiang, 2024. "Harnessing the synergistic impacts of financial structure, industrialization, and ecological footprint through the lens of the EKC hypothesis. Insights from Pakistan," Energy, Elsevier, vol. 307(C).
    7. Leyla Ergene & Nurullah Altıntaş & Muhammet Yeniyurt, 2025. "The ınfluence of financial markets, financial ınstitutions and economic growth on environmental quality and sustainability: Testing the LCC hypothesis in the case of China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(8), pages 20229-20262, August.
    8. Atif Jahanger & Muhammad Usman & Daniel Balsalobre‐Lorente, 2022. "Linking institutional quality to environmental sustainability," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1749-1765, December.
    9. Hicham Ayad & Aissa Djedaiet, 2026. "Does the unemployment rate matter for environmental issues in the G7 nations? New testing for the environmental Phillips curve using the load capacity factor," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(1), pages 187-217, January.
    10. Ojonugwa Usman & Oktay Ozkan & Ibrahim Adeshola & Babatunde Sunday Eweade, 2025. "Analysing the nexus between clean energy expansion, natural resource extraction, and load capacity factor in China: a step towards achieving COP27 targets," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(6), pages 12583-12604, June.
    11. Tehreem Fatima & Asif Razzaq & Xuan‐Hoa Nghiem & Muhammad Saeed Meo, 2025. "How environmental policy stringency, green investment, and renewable energy contribute to environmental pollution and load capacity factor in G11 countries?," Natural Resources Forum, Blackwell Publishing, vol. 49(4), pages 3967-3983, November.
    12. Sun, Chuanwang & Khan, Anwar & Cai, Weiyi, 2024. "The response of energy aid and natural resources consumption in load capacity factor of the Asia Pacific emerging countries," Energy Policy, Elsevier, vol. 190(C).
    13. Du, Junhua & Yang, Xiaofei & Long, Dengjie & Xin, Yongrong, 2024. "Modelling the influence of natural resources and social globalization on load capacity factor: New insights from the ASEAN countries," Resources Policy, Elsevier, vol. 91(C).
    14. Egunjobi, T. Adenike & Akam, Darlington Uzoma, 2025. "The Role of Industrialization and Renewable Energy on Environmental Quality in Oil Exporting Sub-Saharan African Countries," African Journal of Economic Review, African Journal of Economic Review, vol. 13(2).
    15. Jin, Guangzhu & Huang, Zhenhui, 2023. "Asymmetric impact of renewable electricity consumption and industrialization on environmental sustainability: Evidence through the lens of load capacity factor," Renewable Energy, Elsevier, vol. 212(C), pages 514-522.
    16. Uche, Emmanuel & Ngepah, Nicholas & Das, Narasingha & Dey, Labani, 2024. "Dynamic interactions of green innovations, green transitions and ecological load capacity factor in BRICS," Renewable Energy, Elsevier, vol. 231(C).
    17. Asif Raihan & Mamunur Rashid & Liton Chandra Voumik & Salma Akter & Miguel Angel Esquivias, 2023. "The Dynamic Impacts of Economic Growth, Financial Globalization, Fossil Fuel, Renewable Energy, and Urbanization on Load Capacity Factor in Mexico," Sustainability, MDPI, vol. 15(18), pages 1-21, September.
    18. Zhang, Shuyue & Ramzan, Muhammad & Awosusi, Abraham Ayobamiji & Eweade, Babatunde Sunday & Ojekemi, Opeoluwa Seun, 2024. "Unraveling causal dynamics: Exploring resource efficiency and biomass utilization in Malaysia's context," Renewable Energy, Elsevier, vol. 226(C).
    19. Emmanuel Uche & Kingsley I. Okere & Nicholas Ngepah, 2025. "After the Johannesburg II Declaration, What Next for Ecological Sustainability in BRICS? Perspectives on Green Innovations and Green Transitions," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(3), pages 4348-4365, June.
    20. Fatima Zahra Moussaid & Hikma Bachegour & Mounir Jerry & Ahlam Qafas, 2025. "Probing the asymmetric impact of clean energy technologies on environmental quality: testing load capacity curve hypothesis in Spain," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(2), pages 4425-4444, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:natres:v:48:y:2024:i:3:p:743-762. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1477-8947 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.