IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v190y2022icp664-674.html
   My bibliography  Save this article

Exploring the nexuses between nuclear energy, renewable energy, and carbon dioxide emissions: The role of economic complexity in the G7 countries

Author

Listed:
  • Murshed, Muntasir
  • Saboori, Behnaz
  • Madaleno, Mara
  • Wang, Hong
  • Doğan, Buhari

Abstract

The G7 countries consist of some of the world's most economically developed nations. However, alongside such robust economic growth performances, the environmental qualities in these countries have simultaneously aggravated to raise deep concerns among the stakeholders. Hence, this study is designed to empirically examine the environmental effects of nuclear and renewable energy consumption, economic complexity, and economic growth in the context of the G7 countries for the period between 1995 and 2016. To ensure novelty, this study considers carbon footprints along with carbon dioxide emissions to measure environmental quality in the context of the G7 nations. The results reveal that although nuclear energy consumption is effective in mitigating carbon dioxide emissions and carbon footprints in the long run, renewable energy consumption degrades the environment in the G7 countries. Besides, the results also suggest that the G7 countries can transform their production processes in an environmentally friendly manner provided they can undergo a clean transition in energy use. Finally, economic growth is evidenced to be detrimental for the environment since higher economic growth levels are seen to boost both carbon dioxide emission and carbon footprint levels. Therefore, in line with the findings, this study recommends the G7 countries to significantly enhance their nuclear and renewable energy consumption levels, increase their economic complexity indices, and integrate environmental welfare policies within their economic growth strategies.

Suggested Citation

  • Murshed, Muntasir & Saboori, Behnaz & Madaleno, Mara & Wang, Hong & Doğan, Buhari, 2022. "Exploring the nexuses between nuclear energy, renewable energy, and carbon dioxide emissions: The role of economic complexity in the G7 countries," Renewable Energy, Elsevier, vol. 190(C), pages 664-674.
    • Handle: RePEc:eee:renene:v:190:y:2022:i:c:p:664-674
    DOI: 10.1016/j.renene.2022.03.121
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148122004050
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2022.03.121?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anindya Banerjee & Josep Lluís Carrion-i-Silvestre, 2017. "Testing for Panel Cointegration Using Common Correlated Effects Estimators," Journal of Time Series Analysis, Wiley Blackwell, vol. 38(4), pages 610-636, July.
    2. Chiu, Chien-Liang & Chang, Ting-Huan, 2009. "What proportion of renewable energy supplies is needed to initially mitigate CO2 emissions in OECD member countries?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1669-1674, August.
    3. Jushan Bai & Josep Lluís Carrion-I-Silvestre, 2009. "Structural Changes, Common Stochastic Trends, and Unit Roots in Panel Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(2), pages 471-501.
    4. Hiroki Iwata & Keisuke Okada & Sovannroeun Samreth, 2012. "Empirical study on the determinants of CO 2 emissions: evidence from OECD countries," Applied Economics, Taylor & Francis Journals, vol. 44(27), pages 3513-3519, September.
    5. Xia, Wanjun & Apergis, Nicholas & Bashir, Muhammad Farhan & Ghosh, Sudeshna & Doğan, Buhari & Shahzad, Umer, 2022. "Investigating the role of globalization, and energy consumption for environmental externalities: Empirical evidence from developed and developing economies," Renewable Energy, Elsevier, vol. 183(C), pages 219-228.
    6. Pedroni, Peter, 2004. "Panel Cointegration: Asymptotic And Finite Sample Properties Of Pooled Time Series Tests With An Application To The Ppp Hypothesis," Econometric Theory, Cambridge University Press, vol. 20(3), pages 597-625, June.
    7. Zafar, Muhammad Wasif & Shahbaz, Muhammad & Sinha, Avik & Sengupta, Tuhin & Qin, Quande, 2020. "How Renewable Energy Consumption Contribute to Environmental Quality? The Role of Education in OECD Countries," MPRA Paper 100259, University Library of Munich, Germany, revised 08 May 2020.
    8. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    9. Mohammed Musah & Yusheng Kong & Isaac Adjei Mensah & Stephen Kwadwo Antwi & Mary Donkor, 2021. "The connection between urbanization and carbon emissions: a panel evidence from West Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 11525-11552, August.
    10. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    11. Dumitrescu, Elena-Ivona & Hurlin, Christophe, 2012. "Testing for Granger non-causality in heterogeneous panels," Economic Modelling, Elsevier, vol. 29(4), pages 1450-1460.
    12. Azam, Anam & Rafiq, Muhammad & Shafique, Muhammad & Zhang, Haonan & Yuan, Jiahai, 2021. "Analyzing the effect of natural gas, nuclear energy and renewable energy on GDP and carbon emissions: A multi-variate panel data analysis," Energy, Elsevier, vol. 219(C).
    13. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 239-253.
    14. M. Hashem Pesaran & Aman Ullah & Takashi Yamagata, 2008. "A bias-adjusted LM test of error cross-section independence," Econometrics Journal, Royal Economic Society, vol. 11(1), pages 105-127, March.
    15. Destek, Mehmet & Sinha, Avik, 2020. "Renewable, non-renewable energy consumption, economic growth, trade openness and ecological footprint: Evidence from organisation for economic Co-operation and development countries," MPRA Paper 104246, University Library of Munich, Germany, revised 2020.
    16. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    17. Ben Jebli, Mehdi & Farhani, Sahbi & Guesmi, Khaled, 2020. "Renewable energy, CO2 emissions and value added: Empirical evidence from countries with different income levels," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 402-410.
    18. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    19. Charfeddine, Lanouar & Kahia, Montassar, 2019. "Impact of renewable energy consumption and financial development on CO2 emissions and economic growth in the MENA region: A panel vector autoregressive (PVAR) analysis," Renewable Energy, Elsevier, vol. 139(C), pages 198-213.
    20. Buhari Doğan & Oana M. Driha & Daniel Balsalobre Lorente & Umer Shahzad, 2021. "The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 1-12, January.
    21. Iwata, Hiroki & Okada, Keisuke & Samreth, Sovannroeun, 2010. "Empirical study on the environmental Kuznets curve for CO2 in France: The role of nuclear energy," Energy Policy, Elsevier, vol. 38(8), pages 4057-4063, August.
    22. Shahbaz, Muhammad & Destek, Mehmet Akif & Dong, Kangyin & Jiao, Zhilun, 2021. "Time-varying impact of financial development on carbon emissions in G-7 countries: Evidence from the long history," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    23. Anwar, Ahsan & Siddique, Muhammad & Eyup Dogan, & Sharif, Arshian, 2021. "The moderating role of renewable and non-renewable energy in environment-income nexus for ASEAN countries: Evidence from Method of Moments Quantile Regression," Renewable Energy, Elsevier, vol. 164(C), pages 956-967.
    24. Zhao, Jing & Sinha, Avik & Inuwa, Nasiru & Wang, Yihan & Murshed, Muntasir & Abbasi, Kashif Raza, 2022. "Does structural transformation in economy impact inequality in renewable energy productivity? Implications for sustainable development," Renewable Energy, Elsevier, vol. 189(C), pages 853-864.
    25. Khezri, Mohsen & Heshmati, Almas & Khodaei, Mehdi, 2022. "Environmental implications of economic complexity and its role in determining how renewable energies affect CO2 emissions," Applied Energy, Elsevier, vol. 306(PB).
    26. Mujtaba, Aqib & Jena, Pabitra Kumar & Bekun, Festus Victor & Sahu, Pritish Kumar, 2022. "Symmetric and asymmetric impact of economic growth, capital formation, renewable and non-renewable energy consumption on environment in OECD countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 160(C).
    27. Suvajit Banerjee & Muntasir Murshed, 2020. "Do emissions implied in net export validate the pollution haven conjecture? Analysis of G7 and BRICS countries," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 12(3), pages 297-319.
    28. Doğan, Buhari & Ghosh, Sudeshna & Hoang, Dung Phuong & Chu, Lan Khanh, 2022. "Are economic complexity and eco-innovation mutually exclusive to control energy demand and environmental quality in E7 and G7 countries?," Technology in Society, Elsevier, vol. 68(C).
    29. Jaforullah, Mohammad & King, Alan, 2015. "Does the use of renewable energy sources mitigate CO2 emissions? A reassessment of the US evidence," Energy Economics, Elsevier, vol. 49(C), pages 711-717.
    30. Destek, Mehmet Akif & Aslan, Alper, 2020. "Disaggregated renewable energy consumption and environmental pollution nexus in G-7 countries," Renewable Energy, Elsevier, vol. 151(C), pages 1298-1306.
    31. Murshed, Muntasir, 2020. "Are Trade Liberalization policies aligned with Renewable Energy Transition in low and middle income countries? An Instrumental Variable approach," Renewable Energy, Elsevier, vol. 151(C), pages 1110-1123.
    32. Ben Jebli, Mehdi & Ben Youssef, Slim & Ozturk, Ilhan, 2013. "The Environmental Kuznets Curve: The Role of Renewable and Non-Renewable Energy Consumption and Trade Openness," MPRA Paper 51672, University Library of Munich, Germany.
    33. Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "CO2 emissions, nuclear energy, renewable energy and economic growth in the US," Energy Policy, Elsevier, vol. 38(6), pages 2911-2915, June.
    34. AlFarra, Hasan Jamil & Abu-Hijleh, Bassam, 2012. "The potential role of nuclear energy in mitigating CO2 emissions in the United Arab Emirates," Energy Policy, Elsevier, vol. 42(C), pages 272-285.
    35. Okumus, İlyas & Guzel, Arif Eser & Destek, Mehmet Akif, 2021. "Renewable, Non-renewable Energy Consumption and Economic Growth Nexus in G7: Fresh Evidence from CS-ARDL," MPRA Paper 114136, University Library of Munich, Germany.
    36. Baek, Jungho, 2015. "A panel cointegration analysis of CO2 emissions, nuclear energy and income in major nuclear generating countries," Applied Energy, Elsevier, vol. 145(C), pages 133-138.
    37. Peter Pedroni, 2001. "Purchasing Power Parity Tests In Cointegrated Panels," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 727-731, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francisco García-Lillo & Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa, 2023. "Renewable Energies and Sustainable Development: A Bibliometric Overview," Energies, MDPI, vol. 16(3), pages 1-22, January.
    2. Lau, Lin-Sea & Choong, Chee-Keong & Ng, Cheong-Fatt & Liew, Feng-Mei & Ching, Suet-Ling, 2019. "Is nuclear energy clean? Revisit of Environmental Kuznets Curve hypothesis in OECD countries," Economic Modelling, Elsevier, vol. 77(C), pages 12-20.
    3. Shabir, Maria & Pazienza, Pasquale & De Lucia, Caterina, 2023. "Energy innovation and ecological footprint: Evidence from OECD countries during 1990–2018," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    4. Kostakis, Ioannis & Arauzo-Carod, Josep-Maria, 2023. "The key roles of renewable energy and economic growth in disaggregated environmental degradation: Evidence from highly developed, heterogeneous and cross-correlated countries," Renewable Energy, Elsevier, vol. 206(C), pages 1315-1325.
    5. Usman, Muhammad & Makhdum, Muhammad Sohail Amjad, 2021. "What abates ecological footprint in BRICS-T region? Exploring the influence of renewable energy, non-renewable energy, agriculture, forest area and financial development," Renewable Energy, Elsevier, vol. 179(C), pages 12-28.
    6. Liton Chandra Voumik & Mohammad Iqbal Hossain & Md. Hasanur Rahman & Raziya Sultana & Rahi Dey & Miguel Angel Esquivias, 2023. "Impact of Renewable and Non-Renewable Energy on EKC in SAARC Countries: Augmented Mean Group Approach," Energies, MDPI, vol. 16(6), pages 1-19, March.
    7. Zhongwei, Huang & Liu, Yishu, 2022. "The role of eco-innovations, trade openness, and human capital in sustainable renewable energy consumption: Evidence using CS-ARDL approach," Renewable Energy, Elsevier, vol. 201(P1), pages 131-140.
    8. Hasan, Md. Bokhtiar & Wieloch, Justyna & Ali, Md. Sumon & Zikovic, Sasa & Uddin, Gazi Salah, 2023. "A new answer to the old question of the environmental Kuznets Curve (EKC). Does it work for BRICS countries?," Resources Policy, Elsevier, vol. 87(PB).
    9. Dong, Kangyin & Hochman, Gal & Zhang, Yaqing & Sun, Renjin & Li, Hui & Liao, Hua, 2018. "CO2 emissions, economic and population growth, and renewable energy: Empirical evidence across regions," Energy Economics, Elsevier, vol. 75(C), pages 180-192.
    10. Khan, Muhammad Tariq Iqbal & Yaseen, Muhammad Rizwan & Ali, Qamar, 2019. "Nexus between financial development, tourism, renewable energy, and greenhouse gas emission in high-income countries: A continent-wise analysis," Energy Economics, Elsevier, vol. 83(C), pages 293-310.
    11. Rizwana Yasmeen & Ihtsham Ul Haq Padda & Xing Yao & Wasi Ul Hassan Shah & Muhammad Hafeez, 2022. "Agriculture, forestry, and environmental sustainability: the role of institutions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 8722-8746, June.
    12. Chi, Meiqing & Muhammad, Sulaman & Khan, Zeeshan & Ali, Shahid & Li, Rita Yi Man, 2021. "Is centralization killing innovation? The success story of technological innovation in fiscally decentralized countries," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    13. Hassan, Taimoor & Song, Huaming & Khan, Yasir & Kirikkaleli, Dervis, 2022. "Energy efficiency a source of low carbon energy sources? Evidence from 16 high-income OECD economies," Energy, Elsevier, vol. 243(C).
    14. Lian Xue & Mohammad Haseeb & Haider Mahmood & Tarek Tawfik Yousef Alkhateeb & Muntasir Murshed, 2021. "Renewable Energy Use and Ecological Footprints Mitigation: Evidence from Selected South Asian Economies," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    15. Chengjuan Xia & Md. Qamruzzaman & Anass Hamadelneel Adow, 2022. "An Asymmetric Nexus: Remittance-Led Human Capital Development in the Top 10 Remittance-Receiving Countries: Are FDI and Gross Capital Formation Critical for a Road to Sustainability?," Sustainability, MDPI, vol. 14(6), pages 1-24, March.
    16. Sun, Yunpeng & Li, Haoning & Andlib, Zubaria & Genie, Mesfin G., 2022. "How do renewable energy and urbanization cause carbon emissions? Evidence from advanced panel estimation techniques," Renewable Energy, Elsevier, vol. 185(C), pages 996-1005.
    17. Dogan, Eyup & Seker, Fahri, 2016. "Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy," Renewable Energy, Elsevier, vol. 94(C), pages 429-439.
    18. Afef Bouattour & Maha Kalai & Kamel Helali, 2024. "The non-linear relationship between ESG performance and bank stability in the digital era: new evidence from a regime-switching approach," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
    19. Xie, Peijun & Jamaani, Fouad, 2022. "Does green innovation, energy productivity and environmental taxes limit carbon emissions in developed economies: Implications for sustainable development," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 66-78.
    20. Gorus, Muhammed Sehid & Aslan, Murat, 2019. "Impacts of economic indicators on environmental degradation: Evidence from MENA countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 103(C), pages 259-268.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:190:y:2022:i:c:p:664-674. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.