On the road to environmental sustainability: the role of ICT penetration, renewable energy, and investment freedom on load capacity factor

Abstract

In an economy that supports clean sectors, investment freedom is pivotal in ensuring ecological sustainability, while information and communication technologies (ICT) facilitate the rapid spread of this positive impact. This study investigates the influence of renewable energy supply, investment freedom, and information and communication technologies penetration on the load capacity factor in Denmark from 1996 to 2021. The findings reveal that renewable energy supply and investment freedom positively contribute to ecological sustainability, while ICT exhibits a negative effect. The research underscores the significance of transferring technology and investment tools to the renewable energy sector to enhance ecological sustainability. Moreover, it highlights the potential of investment freedom in promoting green technologies and reducing environmental impacts. By minimizing losses in renewable energy through the development of ICT and ensuring economic freedom, progress towards a sustainable future can be accelerated.