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The suppressive effect of renewables on nuclear energy: implications for OECD countries

Author

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  • Masako Ikegami

    (Tokyo Institute of Technology
    Uppsala University)

  • Zijian Wang

    (Center for Pacific Asia Studies)

Abstract

This paper studies the impact of renewables on nuclear energy consumption in 15 OECD countries over the period 1991–2015. We find that the share of renewables (in total electricity production) has negative long-run effects on both nuclear energy consumption per capita and the share of nuclear energy (in total electricity production) while controlling for real GDP per capita, the proportion of carbon emissions from electricity production, and energy dependency. By taking proper account of both cross-section dependence and heterogeneity in the error-correction models, we find that a one percentage point increase in the share of renewables is associated with a 1.8% decrease in nuclear energy consumption per capita and a 2.7% decrease in the share of nuclear energy. Two main implications emerge. First, our results indicate a suppressive effect of renewables on nuclear energy in electric power generation, raising the possibility of restraining installed nuclear capacity through sustained penetration of renewables in OECD countries. Second, our results suggest the limited ability to replace nuclear energy with renewables in electric power generation. As a consequence, raising the share of renewables by rapidly deploying renewable energy technologies on a massive scale may not lead to the intended outcome of greatly reducing the dependence on nuclear energy in OECD countries.

Suggested Citation

  • Masako Ikegami & Zijian Wang, 2020. "The suppressive effect of renewables on nuclear energy: implications for OECD countries," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(2), pages 247-265, April.
  • Handle: RePEc:spr:envpol:v:22:y:2020:i:2:d:10.1007_s10018-019-00258-2
    DOI: 10.1007/s10018-019-00258-2
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    Cited by:

    1. Masako Ikegami & Zijian Wang, 2024. "Does energy technology R&D save energy in OECD countries?," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-22, April.

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    More about this item

    Keywords

    Carbon emissions; Cross-section dependence; Heterogeneous panel; Nuclear phase-out; Renewable electricity;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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