Energy Demand, Financial Access, and Urbanization as Determinants of the Load Capacity Factor: Fresh Evidence from the United States

Authors : Md Mostafa Jalal

Pages : 272-285

Doi:10.54821/uiecd.1830333

View : 135 | Download : 255

Publication Date : 2025-12-30

Article Type : Research Paper

Abstract :This study explores economic activity, energy consumption, financial availability, and urban growth in determining environmental sustainability in the United States using the Load Capacity Factor (LCF) in the Load Capacity Curve (LCC) hypothesis. The analysis uses annual data from 1996 to 2022 and starts with a set of unit root tests (ADF, PP, and DF-GLS) to check the stationarity of the variables. The ARDL bound-testing model demonstrates a long-term equilibrium in the chosen indicators. Long-term estimates show that economic growth and improved financial accessibility enhance the LCF, reflecting better ecological conditions. However, the short-term dynamics differ: increases in GDP, rising energy consumption, and rapid urbanization exert downward pressure on LCF, highlighting transitional environmental stress during periods of accelerated development. Overall, the results suggest that while sustained economic progress and enhanced financial inclusion support long-run ecological resilience, the United States continues to face short-run environmental challenges driven by fossil-fuel-intensive energy use and urban population growth. These insights underscore the importance of a combined approach to policies that would strike a balance between economic goals and environmental protection in the long run by using cleaner forms of energy, practicing greener finances, and ensuring sustainable urban development.
Keywords : Yük Kapasite Faktörü, Enerji Tüketimi, Kentleşme, Finansal Erişilebilirlik, ARDL Yaklaşımı

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