Abstract
A major concern for the modern world is to deal with environmental issues without compromising on economic growth targets. Energy use from renewable and nuclear sources offers a solution to this issue. Therefore, the present study is an attempt to examine the nexus between disaggregated energy consumption, economic growth and carbon dioxide emissions. To this end, a sophisticated econometric technique proposed by Machado and Silva (J Econom 213:145–173, 2019. https://doi.org/10.1016/j.jeconom.2019.04.009) is used for a sample of 107 countries during 1996–2014. For robustness analysis, fixed and random effect with Driscoll Kraay standard errors model is used. The findings revealed an inverted N-shape EKC showing that nuclear and renewable energy alleviate pollution while non-renewable energy enhances it. Interestingly, the impact of nuclear and renewable energy is stronger at lower quantiles than at higher ones. Findings highlight the need for promoting nuclear and renewable energy to combat environmental challenges. Therefore, an adequate plan promoting the use of renewable energy should be established to ensure successful energy transition and reap its benefits in terms of economic development and environmental protection. In addition, important policy implications are suggested based on the findings of the study.
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Data availability
The datasets generated during and/or analyzed during the current study are available in the World Bank repository, https://databank.worldbank.org/source/world-development-indicators.
Abbreviations
- HDI:
-
Human development index
- 2SLS:
-
Two-stage least square
- TO:
-
Trade openness
- ARDL:
-
Autoregressive distributed lag approach
- URB:
-
Urbanization
- ED:
-
Economic development
- EC:
-
Environmental conservation
- EKC:
-
Environmental Kuznets curve
- ENC:
-
Energy consumption
- FD:
-
Financial development
- FMOLS:
-
Fully modified least squares
- CCR:
-
Canonical cointegrating regression
- MMQR:
-
Method of moments quantile regression
- USA:
-
United States of America
- OECD:
-
Organization for Economic Co-Operation and Development
- RENE:
-
Renewable energy
- GDP:
-
Gross domestic product
- NRENE:
-
Nonrenewable energy
- B&R:
-
Belt and road initiative
- GDP2 :
-
GDP square
- GDP3 :
-
GDP cube
- FE-OLS:
-
Fixed effect OLS
- ECG:
-
Economic growth
- NUCE:
-
Nuclear energy
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Abbasi, K.R., Awan, A., Bandyopadhyay, A. et al. Investigating the inverted N-shape EKC in the presence of renewable and nuclear energy in a global sample. Clean Techn Environ Policy 25, 1179–1194 (2023). https://doi.org/10.1007/s10098-022-02436-5
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DOI: https://doi.org/10.1007/s10098-022-02436-5