Causal Relationship between Nuclear Energy Consumption and Economic Growth: Case of Spain
Abstract
This study empirically observed the nexus between nuclear energy
consumption and economic growth in the country of Spain. Unit root and
stationarity tests, Johansen cointegration tests, vector error correction
models (VECM), and Granger causality tests were applied to annual data
for the years 1968 to 2014. Empirical results confirmed the existence of a
long-term equilibrium relationship between two variables and showed
that nuclear energy consumption using Granger causality tests causes
economic growth, which leads to important policy implications.
Spain is an oil-importing country. As environmental concerns in-
crease, policy makers should consider increasing the share of nuclear
power in the country’s energy portfolio since it provides energy with no
carbon emissions. However, policy makers should consider the safety
measures and the correct disposal methodologies for nuclear waste.
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