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Can technological progress, renewable and nuclear energy consumption be the remedy for global climate crises? An examination of leading OECD countries

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Abstract

Energy is the most critical input for production and consumption. The inputs of energy cause irreversible damage to the environment. The studies carried out to reduce the environmental impact of the methods used in energy production are extremely valuable. This study aims to reveal the effects of technological development, nuclear energy consumption, and renewable energy use on environmental degradation. The patent numbers, technological development, GDP, renewable energy, and nuclear energy consumption data of 16 OECD countries covering the years 1996–2019 were used in the empirical analysis. The findings of panel FMOLS and DOLS methods reveal that technological progress, nuclear, and renewable energy consumption significantly reduce CO2 emissions. In line with these findings, critical policy implications have been suggested.

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Notes

  1. The countries are Belgium, Canada, the Czech Republic, Finland, Germany, France, Hungary, Japan, South Korea, Mexico, the Netherlands, the Slovak Republic, Slovenia, Spain, the UK, and the USA.

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Authors and Affiliations

  1. Department of Economics, Faculty of Business Administration and Economics, Bandırma Onyedi Eylül University, Balıkesir, Turkey

    Fatih Ayhan

  2. Department of Economics, Faculty of Business Administration and Economics, Izmir Democracy University, Izmir, Turkey

    Meltem Ince Yenilmez

  3. Department of Business Administration, Faculty of Business Administration, Istanbul Bilgi University, Istanbul, Turkey

    Onuray Elal

  4. Department of Banking and Finance, Faculty of Applied Sciences, Trakya University, Tekirdag, Turkey

    Serap Dursun

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  1. Fatih Ayhan
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  2. Meltem Ince Yenilmez
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  3. Onuray Elal
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  4. Serap Dursun
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Contributions

Fatih Ayhan: conceptualization, writing of original draft, and writing including review and editing; Meltem Ince Yenilmez: design of the study, conceptualization, writing of original draft, and writing including review and editing; Onuray Elal: conceptualization, writing of original draft, and writing including review and editing; Serap Dursun: methodology, econometric analysis, and writing including review and editing.

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Highlights

• The study examines the effect of technological change, renewable energy, and nuclear energy consumption on environmental degradation.

• The study analyzes 16 OECD countries for the period between 1996 and 2019.

• The study applies the DOLS and FMOLS model and panel causality tests.

• Technological changes induced by patent applications are labor-destructive, whereas technological changes induced by research and development expenditures are positive yet insignificant on employment. Additionally, gross domestic product and trade openness turn out labor-friendly.

• Nuclear energy and conventional and environment-friendly technologies reduce environmental degradation.

• Renewable energy is found to be the most effective strategy against environmental degradation.

• The causality test reveals the bidirectional causal relationship between renewable energy and environmental degradation and between environmental technologies and environmental degradation.

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Ayhan, F., Yenilmez, M.I., Elal, O. et al. Can technological progress, renewable and nuclear energy consumption be the remedy for global climate crises? An examination of leading OECD countries. Environ Sci Pollut Res 31, 228–248 (2024). https://doi.org/10.1007/s11356-023-30627-0

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