Nuclear energy consumption and economic growth in theUK: Evidence from wavelet coherence approach

The aim of this present study is to assess the causal link between nuclear energy consumption and economic growth in the United Kingdom using Toda Yamamoto causality and wavelet coherence tests with the objective of responding to the following questions: (a) Does consumption of nuclear energy lead to economic growth in the United Kingdom and/or does economic growth lead to the consumption of nuclear energy sources in the United Kingdom, and (b) if so, why? The findings from wavelet coherence reveal that changes in economic growth lead to changes in nuclear energy consumption in the United Kingdom at different frequencies, especially in the long-run, and in different periods between 1998 and 2017. In addition, there is a positive correlation between nuclear energy consumption and economic growth between 2002 and 2006 in the short-run. In this study, we also check the consistency of the findings from wavelet coherence which is confirmed by the outcomes of Toda Yamamoto causality test. Therefore, the present study is likely to attract great interest from the policy-makers and researchers in this field. At the same time, it is likely to start a new debate.

Automated summary

The study assesses the causal link between nuclear energy consumption and economic growth in the UK, finding that economic growth influences nuclear energy consumption in the long run and there is a short-term positive correlation between the two during 2002-2006. The results are likely to attract interest from policymakers and researchers in the field, sparking new debates.