Investigating the impact of nuclear energy consumption on GDP growth and CO2 emission: A panel data analysis

• The effect of nuclear energy consumption on GDP and CO2 emission is investigated.
• 30 major nuclear energy consuming countries were examined.
• The panel mode was utilized taking the period 1990–2010.
• Nuclear energy consumption increases GDP with no effect on CO2 emission.

This study investigates the influence of nuclear energy consumption on GDP growth and CO2 emission in 30 major nuclear energy consuming countries. The panel mode was used taking the period 1990–2010. The results of the study indicated that nuclear energy consumption has a positive long run effect on GDP growth while it has no long run effect on CO2 emission. The Granger causality test results also revealed that nuclear energy consumption has a positive short run causal relationship with GDP growth while it has a negative short run causal relationship with CO2 emission. Based on the results of this study, nuclear energy consumption has an important role in increasing GDP growth in the investigated countries with no effect on CO2 emission. Consequently, unlike fossil fuels which also increase GDP growth, nuclear energy consumption causes less damage to the environment. From the results of the study, a number of recommendations were provided for the investigated countries.