This study aims to examine the impact of financial technology (fintech), renewable energy consumption (REC), government effectiveness (GE) and industrialization (IND) on load capacity factor (LCF). The study is conducted for G-20 economies and takes into consideration the LCF as a measure of environmental sustainability. Additionally, the present research examines the load capacity curve (LCC) hypothesis, highlighting a U-shaped relationship between economic growth (EG) and environmental health.
A panel dataset from G-20 countries covering 2005–2022 is analysed using a dynamic panel estimation approach based on the two-step system generalized method of moments technique. A composite Fintech Index is constructed via principal component analysis.
The study concludes that (1) fintech and GE positively and significantly influence LCF, (2) IND negatively impacts sustainability and (3) REC shows no statistically significant effect, likely due to its limited integration in the total energy mix, and (4) confirms the LCC hypothesis, indicating that EG initially degrades but later enhances environmental quality.
A legend at the bottom explains that red arrows indicate “Insignificant effect” and blue arrows indicate “Significant effect”. The model places a central rectangular block labeled “Load Capacity Factor”, surrounded by five rectangular blocks: “Fintech” at the upper left, “Renewable energy consumption” at the lower left, “Government Effectiveness” at the bottom, “Industrialization” at the lower right, and “Economic Growth” at the upper right. A blue arrow connects “Fintech” to the central block through a small block labeled “positive”. A red arrow connects “Renewable energy consumption” to the central block through a block labeled “negative”. A blue arrow links “Government Effectiveness” upward to the central block through a block labeled “positive”. A blue arrow connects “Industrialization” to the central block through a block labeled “negative”. A blue arrow labeled “U shape” links “Economic Growth” to the central block. The text at the top reads: Examining the impact of fintech, economic growth, renewable energy consumption, government effectiveness, and industrialization on Load Capacity Factor.A legend at the bottom explains that red arrows indicate “Insignificant effect” and blue arrows indicate “Significant effect”. The model places a central rectangular block labeled “Load Capacity Factor”, surrounded by five rectangular blocks: “Fintech” at the upper left, “Renewable energy consumption” at the lower left, “Government Effectiveness” at the bottom, “Industrialization” at the lower right, and “Economic Growth” at the upper right. A blue arrow connects “Fintech” to the central block through a small block labeled “positive”. A red arrow connects “Renewable energy consumption” to the central block through a block labeled “negative”. A blue arrow links “Government Effectiveness” upward to the central block through a block labeled “positive”. A blue arrow connects “Industrialization” to the central block through a block labeled “negative”. A blue arrow labeled “U shape” links “Economic Growth” to the central block. The text at the top reads: Examining the impact of fintech, economic growth, renewable energy consumption, government effectiveness, and industrialization on Load Capacity Factor.
