Harnessing growth for ecological sustainability through exploring the drivers of load capacity factor in G7 nations
Abstract This study investigates the determinants of ecological sustainability across G7 nations by analyzing the factors influencing the load capacity factor (LCF)—a comprehensive measure comparing biocapacity and ecological footprint. The uses the STIRPAT model as a basis of analysis, and the main...
Saved in:
| Main Authors: | , , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Springer
2025-08-01
|
| Series: | Discover Sustainability |
| Subjects: | |
| Online Access: | https://doi.org/10.1007/s43621-025-01757-x |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849238024146124800 |
|---|---|
| author | Rejaul Karim Reday Chandra Bhowmik Md Omar Faruq Md. Mustaqim Roshid Sohidul Islam Sharmila Devi Ramachandaran |
| author_facet | Rejaul Karim Reday Chandra Bhowmik Md Omar Faruq Md. Mustaqim Roshid Sohidul Islam Sharmila Devi Ramachandaran |
| author_sort | Rejaul Karim |
| collection | DOAJ |
| description | Abstract This study investigates the determinants of ecological sustainability across G7 nations by analyzing the factors influencing the load capacity factor (LCF)—a comprehensive measure comparing biocapacity and ecological footprint. The uses the STIRPAT model as a basis of analysis, and the main results are found using a novel Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) model; the study explores both short-run and long-run dynamics between LCF and key macroeconomic indicators—economic growth (ECG), population (POP), structural change (STC), service sector development (SERV), green innovation (GI), and research and development expenditure (R&D). The empirical analysis reveals that population growth and structural change have positive but mixed effects; the service sector contributes positively in the short term but negatively in the long run. Green innovation significantly reduces environmental pressure over time, confirming its role as a key driver of sustainability. R&D, although insignificant in the baseline model, shows significant long-run effects in robustness checks. The error correction term is negative and highly significant, indicating rapid adjustment toward long-run equilibrium. Robustness checks using AMG, MG, and CCEMG estimators confirm the validity and consistency of most results. Findings highlight the complex interplay between economic and environmental variables, underscoring the need for green innovation, sustainable service sector models, and targeted R&D investment. However, the study underscores that merely increasing R&D funding is insufficient to address environmental challenges. Instead, fostering the service sector and promoting green innovation are essential for achieving long-run economic growth with sustainability in the G7 and other developed nations alike. Graphical abstract |
| format | Article |
| id | doaj-art-cd6ed37b8a1348eeb268f825e141dada |
| institution | Kabale University |
| issn | 2662-9984 |
| language | English |
| publishDate | 2025-08-01 |
| publisher | Springer |
| record_format | Article |
| series | Discover Sustainability |
| spelling | doaj-art-cd6ed37b8a1348eeb268f825e141dada2025-08-20T04:01:47ZengSpringerDiscover Sustainability2662-99842025-08-016112310.1007/s43621-025-01757-xHarnessing growth for ecological sustainability through exploring the drivers of load capacity factor in G7 nationsRejaul Karim0Reday Chandra Bhowmik1Md Omar Faruq2Md. Mustaqim Roshid3Sohidul Islam4Sharmila Devi Ramachandaran5Department of Business Administration, Varendra UniversityDepartment of Finance and Banking, Comilla UniversityDepartment of Accounting and Information Systems, Comilla UniversityDepartment of Business Administration, Varendra UniversityDepartment of Economics and Banking, International Islamic University ChittagongFaculty of Business and Communications, INTI International UniversityAbstract This study investigates the determinants of ecological sustainability across G7 nations by analyzing the factors influencing the load capacity factor (LCF)—a comprehensive measure comparing biocapacity and ecological footprint. The uses the STIRPAT model as a basis of analysis, and the main results are found using a novel Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) model; the study explores both short-run and long-run dynamics between LCF and key macroeconomic indicators—economic growth (ECG), population (POP), structural change (STC), service sector development (SERV), green innovation (GI), and research and development expenditure (R&D). The empirical analysis reveals that population growth and structural change have positive but mixed effects; the service sector contributes positively in the short term but negatively in the long run. Green innovation significantly reduces environmental pressure over time, confirming its role as a key driver of sustainability. R&D, although insignificant in the baseline model, shows significant long-run effects in robustness checks. The error correction term is negative and highly significant, indicating rapid adjustment toward long-run equilibrium. Robustness checks using AMG, MG, and CCEMG estimators confirm the validity and consistency of most results. Findings highlight the complex interplay between economic and environmental variables, underscoring the need for green innovation, sustainable service sector models, and targeted R&D investment. However, the study underscores that merely increasing R&D funding is insufficient to address environmental challenges. Instead, fostering the service sector and promoting green innovation are essential for achieving long-run economic growth with sustainability in the G7 and other developed nations alike. Graphical abstracthttps://doi.org/10.1007/s43621-025-01757-xEcological sustainabilityLoad capacity factorGreen innovationR&DStructural changeCS-ARDL |
| spellingShingle | Rejaul Karim Reday Chandra Bhowmik Md Omar Faruq Md. Mustaqim Roshid Sohidul Islam Sharmila Devi Ramachandaran Harnessing growth for ecological sustainability through exploring the drivers of load capacity factor in G7 nations Discover Sustainability Ecological sustainability Load capacity factor Green innovation R&D Structural change CS-ARDL |
| title | Harnessing growth for ecological sustainability through exploring the drivers of load capacity factor in G7 nations |
| title_full | Harnessing growth for ecological sustainability through exploring the drivers of load capacity factor in G7 nations |
| title_fullStr | Harnessing growth for ecological sustainability through exploring the drivers of load capacity factor in G7 nations |
| title_full_unstemmed | Harnessing growth for ecological sustainability through exploring the drivers of load capacity factor in G7 nations |
| title_short | Harnessing growth for ecological sustainability through exploring the drivers of load capacity factor in G7 nations |
| title_sort | harnessing growth for ecological sustainability through exploring the drivers of load capacity factor in g7 nations |
| topic | Ecological sustainability Load capacity factor Green innovation R&D Structural change CS-ARDL |
| url | https://doi.org/10.1007/s43621-025-01757-x |
| work_keys_str_mv | AT rejaulkarim harnessinggrowthforecologicalsustainabilitythroughexploringthedriversofloadcapacityfactoring7nations AT redaychandrabhowmik harnessinggrowthforecologicalsustainabilitythroughexploringthedriversofloadcapacityfactoring7nations AT mdomarfaruq harnessinggrowthforecologicalsustainabilitythroughexploringthedriversofloadcapacityfactoring7nations AT mdmustaqimroshid harnessinggrowthforecologicalsustainabilitythroughexploringthedriversofloadcapacityfactoring7nations AT sohidulislam harnessinggrowthforecologicalsustainabilitythroughexploringthedriversofloadcapacityfactoring7nations AT sharmiladeviramachandaran harnessinggrowthforecologicalsustainabilitythroughexploringthedriversofloadcapacityfactoring7nations |