Although some recent papers have explored the impacts of external debt on environmental
sustainability, the impacts of external debt on the load capacity factor (LCF) have been ignored. In
this regard, this work aims to examine the influence of renewable energy, FDI, and external debt on
the LCF in Brazil over the period 1970–2021; this indicator implies the country’s strength to promote
the population based on current lifestyles. This paper uses the novel augmented autoregressive
distributive lag (A-ARDL) technique. The findings from the A-ARDL show that renewable energy
positively influenced ecological sustainability by promoting the LCF by 0.451% in the short run and
0.038% in the long run. In addition, the findings show that an increase in the rent of natural resources
promotes the LCF. In contrast, the outcomes illustrate that an increase in the external debt led to an
adverse impact on ecological sustainability by decreasing the level of LCF by 0.093% in the short run
and 0.162% in the long run. Furthermore, the findings demonstrated that FDI negatively affects the
ecological sustainability quality by reducing the LCF in the country. The study provides beneficial
recommendations to policymakers in Brazil for achieving sustainable development in Brazil.
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