The Asymmetric Role of Resource Efficiency and Alternative Energy on Load Capacity Factor in India

In this study, we examine the asymmetric role of resource efficiency (RE), fossil fuel consumption (FFC), and alternative energy consumption (REC) on India's load capacity factor (LCF) from 1970 to 2019. We employ advanced quantile-based techniques such as the wavelet quantile correlation, cross-quantilogram analysis, quantile regression, and quantile Granger causality tests. The findings indicate that the RE and FFC dampen LCF with weaker effects in the lower and middle quantiles and minimal effects in the higher quantiles. In contrast, REC has a consistently strong and positive effect on LCF across all quantiles, reinforcing its eco-friendly nature. In addition, the quantile Granger causality analysis reveals that RE, FFC, and REC demonstrate varying predictive powers across different quantiles of LCF, with notable predictability observed in variance except for the extreme higher quantiles. These findings suggest that policies aimed at enhancing ecological quality should be considered, which include promoting efficient use of resources and REC.