The dynamic relationship between nuclear energy, CO2 emissions, and economic growth: evidence from the richest countries in Europe and Asia

Abstract

This study examines the dynamic relationship between the share of nuclear energy, growth in CO2 emissions, and GDP growth for the wealthiest countries of the two continents, Europe and Asia, from 1965 to 2021. The results from the SVAR model show a significant positive relationship between GDP growth and the growth of CO2 emissions in all countries. However, the values of the coefficients vary in the case of different countries of both continents. Further, it has been observed that the relationship between the growth of nuclear energy and the growth in CO2 emissions is more complex and varies from country to country. The results indicate that there is a strong negative relationship between nuclear energy and CO2 emissions in France, Russia, the United Kingdom, and India. At the same time, there is no significant relationship between Germany, Italy, and China. Finally, the result shows that there is an insignificant relationship between the growth in the share of nuclear energy and the GDP growth rate. From the policy perspective, this study suggests that alternative energy sources like nuclear energy can be leveraged to obtain a clean environment.