This study examines the determinants of Spain’s load capacity factor (LCF) from 1990 to 2023, focusing on economic growth, trade openness (TO), renewable energy consumption (RENC), technological innovation, and mineral rents (MRs). Using an autoregressive distributed lag (ARDL) framework, the results indicate that economic growth exerts mixed short-run effects on LCF while supporting ecological capacity in the long run. TO is found to reduce LCF in the long run, lending support to the pollution haven hypothesis. RENC exhibits transitional dynamics, with short-run adjustment gains following initial ecological pressure, but its long-run impact on LCF remains negative. Technological innovation and MRs display mixed short-run effects while contributing positively to ecological capacity over the long run. The findings highlight the need for sustainable trade policies, eco-innovation, and responsible resource management to balance economic progress with environmental sustainability.
Georgescu et al. (Thu,) studied this question.