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By comparing ecological footprint and biocapacity, the load capacity factor follows a given ecological threshold, thus allowing for a thorough study of environmental deterioration. As a result, this research uses the load capacity factor (LCF) as a distinct proxy for ecological deterioration, resulting in a detailed environmental evaluation tool that considers both ecological footprint and biocapacity at the same time. Based on this knowledge, the current research investigates the relationship between load capacity factor (LCF) and fossil fuel (FF), renewable energy (REC), economic complexity (ECI) and foreign direct investment (FDI) in Spain utilizing a dataset covering the period between 1970Q1 and 2017Q4. We applied the novel wavelet coherence technique to assess the connection and/or causality interrelationship between LCF and the exogenous variables at various frequencies and different timeframes. The outcomes of the wavelet correlation disclosed that: (i) In the short and medium term, REC enhances the quality of the environment; (ii) In the short and medium term, fossil fuels worsen the quality of the environment; (iii) At all frequencies, FDI inflows enhance the quality of the environment; and (iv) In the short, medium and long term, economic complexity hinders the quality of the environment. In addition, the MWC and PWC outcomes are consistent with the wavelet coherence outcomes. Moreover, the wavelet-based Granger causality revealed that all the variables can predict each other at various frequencies.

international journal of sustainable development and world ecology

Environmental consequences of fossil fuel in Spain amidst renewable energy consumption: a new insights from the wavelet-based Granger causality approach