Nuclear energy consumption and energy-driven growth nexus: a system GMM analysis of 27 nuclear utilizing countries across the globe

Abstract

While the general environmental quality level continues to decline in today's global economy, aggregate energy consumption levels are often linked to countries' economic growth and environmental performances, thereby overlooking the specific roles of individual energy types. Thus, this study focuses on examining nuclear energy consumption-growth nexus in 27 selected nuclear energy-consuming countries across the globe. The system GMM estimator was applied to available post-2008 global financial crisis data spanning from 2010 to 2020 while accounting for influential factor inputs (labor and capital) within the framework of the traditional growth model. The results posit that both capital and labor significantly induce economic growth levels among the countries, while nuclear energy consumption is not a significant driver of growth levels despite some evidence of its positive roles. Hence, more investments in nuclear energy production are recommended to trigger an overall consumption level that will not only yield significant desirable economic growth impacts among the countries but also enhance possible environmental benefits in contrast to the growing environmentally detrimental fossil energy consumption among the countries.

Keywords: Economic growth; Energy consumption; Environmental sustainability; Nuclear energy; System GMM.