Exploring the role of nuclear energy in the energy transition: A comparative perspective of the effects of coal, oil, natural gas, renewable energy, and nuclear power on economic growth and carbon emissions

Abstract

Nuclear power has received renewed attention during the energy transition in recent years. This study is aimed to explore whether nuclear energy can promote economic growth without increasing carbon emissions. In order to have a more comprehensive understanding of the relationship between nuclear energy, economic growth, and carbon emissions, this study also discusses the impact of coal, oil, natural gas, and renewable energy on economic growth and carbon emissions. The second-generation panel unit root test, panel cointegration test, panel fully modified ordinary least squares, and Heterogeneous Dumitrescu and Hurlin causality test were used to estimate the long-term elasticity and causality among variables. Results based on panel data from 24 countries with nuclear energy from 2001 to 2020 show that both nuclear energy and renewable energy can curb carbon emissions. Especially in Canada, Finland, Russia, Slovenia, South Korea, and The United Kingdom, nuclear energy reduces carbon emissions more significantly than renewable energy. Meanwhile, there is a positive relationship between increased nuclear energy, increased renewable energy, and economic growth, which means that nuclear energy and renewable energy could increase economic growth as well. There is a positive relationship between increased oil, increased natural gas, and economic growth, while there is a negative relationship between the increase in coal and economic growth. Meanwhile, there is a positive relationship between increased oil, increased coal, and increased carbon emissions, while the positive relationship between increased natural gas and increased carbon emissions is not significant. Thus, in the 22 countries with nuclear power, increased coal consumption does not drive economic growth but increases carbon emissions. Increased oil consumption increases economic growth, but it increases carbon emissions. Increased natural gas consumption boosts economic growth but adds little to carbon emissions. In the authors' view, nuclear power and renewable energy are all options for these nuclear-power countries to pursue economic growth without increasing carbon emissions. Moreover, nuclear power has a better effect on curbing carbon emissions in some countries than renewable energy. Therefore, under the premise of safety, nuclear power should be seriously considered and re-developed.

Keywords: Atomic energy; Carbon emission; Economic growth; Fossil fuel; Renewable energy.