Determinants of Load Capacity Factor in BRICS Countries: A Panel Data Analysis

Determinants of Load Capacity Factor in BRICS Countries: A Panel Data Analysis
Authors: Minjing Yang, Cosimo Magazzino, Abraham Ayobamiji Awosusi, Navzodbek Abdulloev
Journal: Natural Resources Forum
Volume & Issue: Volume 48, Issue 2
Published: May 2024
 

This study examines the determinants of the load capacity factor (LCF)—a key indicator of ecological quality—in BRICS countries from 1990 to 2018. While prior research largely focused on CO₂ emissions and ecological footprints, this paper addresses a gap by testing the Load Capacity Curve (LCC) hypothesis in emerging economies. Using the Method of Moments Quantile Regression (MMQR) and long-run estimators, the authors analyze how biomass energy, social globalization, natural resources and economic growth influence ecological quality.

The results show that natural resource exploitation, social globalization and GDP growth negatively affect ecological quality across most quantiles. In contrast, biomass energy usage significantly improves LCF, demonstrating its potential for ecological sustainability. The study confirms the validity of the LCC hypothesis for BRICS and identifies causal relationships between LCF and its key determinants.

Policy recommendations emphasize shifting from hydrocarbon-based energy to sustainable alternatives, particularly advanced biomass technologies that increase conversion efficiency. Such a transition would enhance ecological quality and better align BRICS countries with Sustainable Development Goals (SDGs), offering a model for other emerging economies.