How green finance, digitalization, and transport technologies affect the load capacity factor in Organization for Economic Cooperation and Development countries

With environmental pollution on the rise, the Organization for Economic Cooperation and Development (OECD) member countries have recognized the need to invest heavily in environmentally sound technologies and digitalization. These economies have enacted a series of agreements to ensure environmental sustainability on a global scale. This study aims to achieve Sustainable Development Goals 7 and 11, which focus on a clean environment, and to assess the impact of transport technologies, digitalization, and green finance on the load capacity factor. To the best of our knowledge, this study is the first to examine the impact of transportation technologies, digitalization, and green finance on environmental quality in OECD economies. In addition, the study assesses the implications of achieving carbon neutrality by 2030, which was highlighted at the United Nations Conference of the Parties on Climate Change. In this context, the study analyzes data from 1995 to 2020, and OECD member countries were selected for inclusion. The findings reveal that no mutual causal relationship was found between load capacity and green finance. However, there is a reciprocal causal relationship between transportation technologies and freight capacity, as well as a unidirectional causal relationship between digitalization and freight capacity. In addition, this study provides policy recommendations to support the Sustainable Development Goals.