Energy Demand, Financial Access, and Urbanization as Determinants of the Load Capacity Factor: Fresh Evidence from the United States
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
References
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Details
Primary Language
English
Subjects
Time-Series Analysis
Journal Section
Research Article
Authors
Md Mostafa Jalal
*
0009-0003-3393-1151
United States
Publication Date
December 30, 2025
Submission Date
November 25, 2025
Acceptance Date
December 29, 2025
Published in Issue
Year 2025 Volume: 7 Number: 4
Cited By
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