Achieving ecological sustainability in OECD countries: The role of fiscal decentralization and green energy

The global push for sustainable development has increased interest in understanding the complex interplay between various factors that affect the load capacity factor. The load capacity factor is a metric used to assess the utilization or capacity of a system or resource. It indicates how effectively the system or resource is used at any given time. This study aims to provide an understanding of the potential environmental effects of human activities by examining the effects of fiscal decentralization, renewable energy share, and natural resources on the load capacity factor in OECD countries from 1995 to 2020. The study's findings emphasize the need to promote renewable energy sources, optimize the utilization of natural resources, and empower local authorities in determining energy policy. Furthermore, findings reveal that fiscal decentralization can significantly affect the load capacity factor, particularly at higher levels of decentralization, and that as the level of fiscal decentralization increases, the load capacity factor continues to exert a significant influence. Moreover, economic growth negatively impacts the load capacity factor, indicating that higher levels of economic growth have a greater impact. A comprehensive and effective policy promoting sustainable development, enhancing load capacity, and mitigating environmental risks should be the focus of policymakers in the OECD countries. A greener and more sustainable future can be achieved by aligning fiscal decentralization, renewable energy promotion, and sustainable resource management.