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Role of alternative and nuclear energy in stimulating environmental sustainability: impact of government expenditures

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Abstract

Environmental sustainability is fundamental to the survival of our planet and ourselves, as polluted air, water, and land severely affect communities and society to thrive and damage the quality of life. This study examined the role of alternative and nuclear energy in stimulating the environment sustainably while mediating the function of government expenditure and economic growth in the top three highest CO2 emitter countries. We apply advanced econometric methodologies for empirical analysis from 1981 to 2016 and find long-run relationships among the variables that suggest general government final consumption expenditure and economic growth are positively related to CO2 emissions. Moreover, alternative and nuclear energy and the square root of economic growth (EKC) improve environmental sustainability. The general government’s final consumption expenditure and economic growth deteriorate environmental sustainability. Policymakers in the top three highest CO2 emitter countries are encouraged to adopt a comprehensive approach to access the compatibility of alternative and nuclear energy sources, changing the source of uranium from mined ore to seawater, encourage, tide, and include macroeconomic stabilization, public and private fiscal position goals with the environmental sustainability policies. Moreover, governments are suggested to incorporate green fiscal policies to address the global environmental challenges and promote a green economy. Aligning government expenditures with environmental goals, reflecting externalities in prices, broader fiscal reform by making fiscal space for clean and green investment is highly encouraged to achieve the sustainable development goals’ target. Study limitations and directions for future research in the area are presented.

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Irfan Khan contributed to writing—original draft preparation, conceptualization, methodology, modelling, software, revision, editing, validation, etc. Duojiao Tan contributed to supervision and reviewing. Syed Tauseef Hassan and Bilal Bilal contributed to reviewing.

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Correspondence to Duojiao Tan.

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The authors declare that they have no competing interests.

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Responsible Editor: Ilhan Ozturk

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Khan, I., Tan, D., Hassan, S.T. et al. Role of alternative and nuclear energy in stimulating environmental sustainability: impact of government expenditures. Environ Sci Pollut Res 29, 37894–37905 (2022). https://doi.org/10.1007/s11356-021-18306-4

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  • DOI: https://doi.org/10.1007/s11356-021-18306-4

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