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Examining the Causal Linkages Between Nuclear Energy, Environment, and Economic Growth: An Application from the SAARC Economies

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  • Sofien Tiba

    (University of Sfax)

  • Musavir Ul Habib

    (Research Fellow, Centre for WTO Studies, IIFT)

Abstract

This essay examines the likelihood of a long-term relationship between nuclear energy and CO2 emissions as well as nuclear energy and per capita GDP. For this, we used a panel cointegration, panel FMOLS, and panel DOLS, as well as the panel Granger causality test on a sample of four SAARC countries (Bangladesh, India, Pakistan, and Sri Lanka) during the years 1980–2017. We identified unidirectional causation between nuclear energy and per capita GDP in the output equation. Long-term analysis, on the other hand, reveals feedback causation between nuclear energy and economic growth. The short-run results of the environmental equation reveal feedback causation between GDP and environmental pressure. Furthermore, the findings reveal one-way causation between nuclear energy and environmental pressure. Additionally, a long-term examination reveals feedback causation between environmental quality and wealth, as well as between nuclear energy and the environment. Given the constant structural changes, developing a proper trade-off between the advantages and costs of using nuclear energy to assure the economy’s long-term growth and ecological well-being is a tough task.

Suggested Citation

  • Sofien Tiba & Musavir Ul Habib, 2024. "Examining the Causal Linkages Between Nuclear Energy, Environment, and Economic Growth: An Application from the SAARC Economies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 9699-9722, June.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:2:d:10.1007_s13132-023-01483-7
    DOI: 10.1007/s13132-023-01483-7
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