Investigating the inverted N-shape EKC in the presence of renewable and nuclear energy in a global sample

A major concern for the modern world is to deal with environmental issues without compromising on economic growth targets. Energy use from renewable and nuclear sources offers a solution to this issue. Therefore, the present study is an attempt to examine the nexus between disaggregated energy consumption, economic growth and carbon dioxide emissions. To this end, a sophisticated econometric technique proposed by Machado and Silva (J Econom 213:145-173, 2019. https://doi.org/10.1016/j.jeconom.2019.04.009) is used for a sample of 107 countries during 1996-2014. For robustness analysis, fixed and random effect with Driscoll Kraay standard errors model is used. The findings revealed an inverted N-shape EKC showing that nuclear and renewable energy alleviate pollution while non-renewable energy enhances it. Interestingly, the impact of nuclear and renewable energy is stronger at lower quantiles than at higher ones. Findings highlight the need for promoting nuclear and renewable energy to combat environmental challenges. Therefore, an adequate plan promoting the use of renewable energy should be established to ensure successful energy transition and reap its benefits in terms of economic development and environmental protection. In addition, important policy implications are suggested based on the findings of the study. [GRAPHICS] .

Automated summary

A study conducted on a sample of 107 countries from 1996 to 2014 analyzed the relationship between energy consumption, economic growth, and carbon dioxide emissions. The findings showed an inverted N-shape environmental Kuznets curve, indicating that nuclear and renewable energy can reduce pollution while non-renewable energy increases it. The study highlights the importance of promoting the use of renewable and nuclear energy to tackle environmental challenges.