Evaluating the impact of digitalization, renewable energy use, and technological innovation on load capacity factor in G8 nations

Abstract

Ecosystems are in danger due to human-caused air, water, and soil pollution, so it is important to find the underlying causes of this issue and develop practical solutions. This study adds to environmental research gap by suggesting the load capability factor (LCF) and using it to look at the factors affectting environmental health. The load capacity factor simplifies monitoring environmental health by illustrating the distinction between ecological footprint and biocapacity. We examine the interplay between mobile phone users (Digitalization DIG), technological advancements (TEC), renewable energy use, economic growth, and financial development. This study assesses G8 economies’ data from 1990 to 2018, using a Cross-Section Improved Autoregressive Distributed Lag CS-ARDL estimator and a cointegration test. The data shows that green energy, TEC innovation, and DIG are all beneficial for natural health. Based on the results of this study, the G8 governments should focus on environmental policies that promote economic growth, increase the use of renewable energy sources, guide technological progress in key areas, and encourage the development of digital information and communications technologies that are better for the environment.