Effects of Green Quality of Energy Mix and Financial Development on Load Capacity Factor in China: A Novel Rolling Window Kernel-based Regularized Least Square Approach
Effects of Green Quality of Energy Mix and Financial Development on Load Capacity Factor in China: A Novel Rolling Window Kernel-based Regularized Least Square Approach

Summary/Abstract: Amidst ongoing global worries over climate change and its ecological ramifications amidst rapid economic growth, the United Nations has set forth a comprehensive agenda known as the Sustainable Development Goals (SDGs), aiming to achieve them by 2030. These goals are tailored to foster sustainable socio-economic progress while enhancing the quality of the global environment. Therefore, this study explores the connections between load capacity factor, green quality of energy mix, financial development, economic growth and natural resources in alignment with SDGs 7, 11, 13 and 12, focusing on China from 1981 to 2021. The study introduces the rolling window kernel-based regularized least squares (RWKRLS) method to assess the interrelationship. The RWKRLS analysis exposes that a green quality of energy mix and financial development positively influence ecological quality. Furthermore, natural resource consumption and economic growth affect ecological quality negatively. Drawing on these critical time-varying interrelationships, a set of interactive policies aligned with the SDGs is proposed, specifically tailored to address China’s unique context.

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