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The impact of human capital on the load capacity factor in the middle east and north Africa

Ben-Salha Ousama, Zmami Mourad

Economics and Environment

2024

No. 4

art. no. 940

Although there has been a substantial body of research analysing the factors influencing environmental sustainability, the role of human capital has been relatively understudied. The objective of this research is to fill this gap by examining the impact of human capital on load capacity factor (LCF) across 14 MENA countries from 1990 to 2019. The empirical investigation employs the Method of Moments Quantile Regression (MMQR) alongside a variety of second-generation panel data techniques. The empirical analysis confirms the presence of a long-term linkage between human capital and environmental sustainability. Furthermore, the MMQR suggests a negative impact of human capital on LCF across all quantile orders, indicating that enhanced human capital reduces LCF and deteriorates environmental quality. Although the detrimental effects of human capital on the environment is observed in all countries, they are more pronounced in countries with good environmental performance. Additionally, the MMQR indicates the validity of the Load Capacity Curve hypothesis within MENA countries. Finally, economic globalisation and population have detrimental impacts on the environment, whereas clean energy consumption has a positive effect. This study emphasises the necessity of increasing public awareness of environmental challenges, as well as the implementation of strategies for mitigating climate change in the MENA region.