How supply chain disruptions, renewable energy consumption, and eco-innovation mitigate environmental degradation? A path towards sustainable development in France

Abstract

The load capacity factor is crucial for France's economic development regarding green energy, supply chain, and digital innovation by enabling the effective utilization of resources, minimizing adverse effects on the environment, and enhancing economic growth. This study has introduced a novel model to examine the impact of supply chain disruptions, renewable energy consumption, eco-innovation, energy tax, human capital, and economic growth on the load capacity factor (LF) of France's economy throughout 1994–2021 by employing the Quantile-on-Quantile Kernel-Based Regularized Least Squares (QQKRLS) and Quantile Causality Analysis. The QQKRLS findings depict that supply chain disruptions and human capital are strongly positively correlated with the LF for moderate to high quantiles, highlighting the importance of operations and human capital. The change in renewable energy consumption reveals an unsystematic pattern and turns negative at higher quantiles, implying sustainability problems. Eco-innovation is positive at lower quantile levels of the LF, and energy tax influence is inversely related to similar levels of LF. An increase in economic growth is associated with the load capacity factor at some selected quantiles, thereby asserting the advantages of some operations capacity. Quantile causality test findings show the top causality at the mid-quantile, implying that LF affects its mid-level most with a decreasing impact on the higher level. It must also be realized that these factors have varying effects depending on which operational situation is being considered. The study findings presented here support a unique strategy for policy and management.