Nuclear energy utilization and the expectations of emission-reduction gains: empirical evidence from economic trajectory of selected utilizing states

Abstract

As the global quest for clean energy grows, the environmentally friendly nature of nuclear energy as a potential non-fossil energy source is generating interest around the world. Therefore, we examine whether nuclear energy utilization has significantly driven carbon emission reduction among the utilizing states. Empirical analyses were conducted using second-generation techniques. The analyses conducted also incorporated testing the EKC theory, as well as examining the effects of natural resources and economic growth on emissions in the sample countries. The empirical analyses cover data from 2000 to 2020 for a total of 27 nuclear energy-using countries as obtained from the Statistical Review of World Energy (Bp, 2021). The findings show that neither the use of nuclear energy nor natural resources significantly reduces carbon emissions across the countries. Additionally, the EKC hypothesis of reduction in emission levels as income expands beyond a certain threshold does not hold for the countries. Moreover, the causality analysis shows that there is a one-way causality from emissions to nuclear energy use. These findings thus highlight the need for more research on how to minimize the indirect carbon footprint that is associated with nuclear energy utilization.