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Spillover effects of economic complexity on load capacity factor in the EU: a spatial econometrics perspective.

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Title: Spillover effects of economic complexity on load capacity factor in the EU: a spatial econometrics perspective.
Authors: Bucak, Çağla1,2 (AUTHOR) cagla.bucak@ege.edu.tr, Çatık, Abdurrahman Nazif1 (AUTHOR)
Source: Journal of Environmental Planning & Management. Jun2026, Vol. 69 Issue 6, p1809-1842. 34p.
Subjects: Spatial analysis (Statistics), Environmental quality, Environmental indicators, Economic development, Globalization, Renewable energy sources, Fossil fuels, European Union
Abstract: This study employs spatial econometric methods to examine the effects of economic complexity, renewable and fossil energy consumption, and globalization on the load capacity factor of 25 European Union countries between 1995 and 2021. Addressing a critical gap in existing literature, this research is the first to examine the spillover effects of the load capacity factor and the influence of neighboring countries' economic complexity on the local country's environmental quality. The use of spatial econometric techniques is crucial in this context, as it allows for a deeper understanding of how independent variables in neighboring countries may affect the dependent variables in the local country. This study is novel in testing the Load Capacity Curve (LCC) hypothesis using the Economic Complexity Index (ECI) as a multifaceted indicator of economic development. The study also provides a unique analysis of the LCC hypothesis in a context that has not been previously explored, namely the European Union, and is the first to investigate the transmission of environmental shocks among neighboring countries. The results reveal a positive relationship between ECI and environmental quality but do not support the LCC hypothesis. The spatial econometric estimates reveal that the load capacity factor has substantial spillover effects among EU countries. The direct and indirect coefficients indicate that globalization and fossil energy reduce environmental quality in neighboring countries, whereas renewable energy improves it. The spatial estimates indicate that environmental shocks are transmitted to neighboring countries. Based on these findings, several policy recommendations are discussed. [ABSTRACT FROM AUTHOR]
Copyright of Journal of Environmental Planning & Management is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Engineering Source
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  Data: Spillover effects of economic complexity on load capacity factor in the EU: a spatial econometrics perspective.
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  Data: <searchLink fieldCode="JN" term="%22Journal+of+Environmental+Planning+%26+Management%22">Journal of Environmental Planning & Management</searchLink>. Jun2026, Vol. 69 Issue 6, p1809-1842. 34p.
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  Data: <searchLink fieldCode="DE" term="%22Spatial+analysis+%28Statistics%29%22">Spatial analysis (Statistics)</searchLink><br /><searchLink fieldCode="DE" term="%22Environmental+quality%22">Environmental quality</searchLink><br /><searchLink fieldCode="DE" term="%22Environmental+indicators%22">Environmental indicators</searchLink><br /><searchLink fieldCode="DE" term="%22Economic+development%22">Economic development</searchLink><br /><searchLink fieldCode="DE" term="%22Globalization%22">Globalization</searchLink><br /><searchLink fieldCode="DE" term="%22Renewable+energy+sources%22">Renewable energy sources</searchLink><br /><searchLink fieldCode="DE" term="%22Fossil+fuels%22">Fossil fuels</searchLink><br /><searchLink fieldCode="DE" term="%22European+Union%22">European Union</searchLink>
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  Label: Abstract
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  Data: This study employs spatial econometric methods to examine the effects of economic complexity, renewable and fossil energy consumption, and globalization on the load capacity factor of 25 European Union countries between 1995 and 2021. Addressing a critical gap in existing literature, this research is the first to examine the spillover effects of the load capacity factor and the influence of neighboring countries' economic complexity on the local country's environmental quality. The use of spatial econometric techniques is crucial in this context, as it allows for a deeper understanding of how independent variables in neighboring countries may affect the dependent variables in the local country. This study is novel in testing the Load Capacity Curve (LCC) hypothesis using the Economic Complexity Index (ECI) as a multifaceted indicator of economic development. The study also provides a unique analysis of the LCC hypothesis in a context that has not been previously explored, namely the European Union, and is the first to investigate the transmission of environmental shocks among neighboring countries. The results reveal a positive relationship between ECI and environmental quality but do not support the LCC hypothesis. The spatial econometric estimates reveal that the load capacity factor has substantial spillover effects among EU countries. The direct and indirect coefficients indicate that globalization and fossil energy reduce environmental quality in neighboring countries, whereas renewable energy improves it. The spatial estimates indicate that environmental shocks are transmitted to neighboring countries. Based on these findings, several policy recommendations are discussed. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of Journal of Environmental Planning & Management is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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RecordInfo BibRecord:
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        Value: 10.1080/09640568.2025.2462229
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        Text: English
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        PageCount: 34
        StartPage: 1809
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        Type: general
      – SubjectFull: Environmental quality
        Type: general
      – SubjectFull: Environmental indicators
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      – SubjectFull: Economic development
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      – SubjectFull: Renewable energy sources
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      – SubjectFull: Fossil fuels
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      – SubjectFull: European Union
        Type: general
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      – TitleFull: Spillover effects of economic complexity on load capacity factor in the EU: a spatial econometrics perspective.
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            – D: 01
              M: 06
              Text: Jun2026
              Type: published
              Y: 2026
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