Assessing the connection between competitive industrial performance on load capacity factor within the LCC framework: Implications for sustainable policy in BRICS economies


ÇAĞLAR A. E., Daştan M., Mehmood U., AVCİ S. B.

ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH, 2023 (SCI-Expanded) identifier identifier identifier

  • Publication Type: Article / Article
  • Publication Date: 2023
  • Doi Number: 10.1007/s11356-023-29178-1
  • Journal Name: ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, IBZ Online, ABI/INFORM, Aerospace Database, Agricultural & Environmental Science Database, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), BIOSIS, CAB Abstracts, EMBASE, Environment Index, Geobase, MEDLINE, Pollution Abstracts, Veterinary Science Database, Civil Engineering Abstracts
  • Ondokuz Mayıs University Affiliated: No

Abstract

Industrialization plays a crucial role in socio-economic development as it holds significant potential for creating new jobs, tightening the income gap, and promoting the use of advanced technology. As global competition intensifies, emerging economies emulate industrialized economies in accelerating manufacturing activity to improve national welfare and join the new global order. However, policymakers' understanding of how competitiveness in the industrial sector helps developing countries accomplish their sustainable development goals must be deepened. This paper aims to analyze the connections among competitive industrial performance, renewable energy consumption, urbanization, and load capacity factor (LCF) in the BRICS economies for the period between 1990 and 2018. Robust evidence from the continuously updated fully modified (CUP-FM) and continuously updated bias-corrected (CUP-BC) models shows that greater industrial competitiveness enhances environmental quality. The findings also reveal that income growth ultimately evolves as an ecologically friendly factor, confirming the validity of the load capacity curve (LCC) hypothesis. Another outcome of the econometric analysis indicates that renewable energy consumption contributes to the LCF, whereas urbanization damages the environment. Therefore, BRICS policymakers should concentrate on maintaining their competitiveness, implementing resilient urban planning, and promoting the usage of renewable energy to safeguard the environment while simultaneously achieving rapid economic growth.