examining the effect of institutional quality on the relationship between nuclear energy consumption and economic growth in selected OECD countries

Document Type : RESEARCH PAPER

Authors

1 Economic Development and Planning, Management & Economics, Tarbiat Modares University, Tehran, Iran.

2 ِDepartment of Economic Development and Planning, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran

3 Department of Economic Development and Planning, Faculty of Management and Economics, Tarbiat Modares University Tehran Iran

Abstract

In recent years, the consumption of low-carbon energy has increased in many developing and developed countries to protect the environment. With increased awareness of climate change in recent years nuclear energy has received renewed attention. Positions that attribute nuclear energy an important role in climate change mitigation emerge. With its low carbon emissions and potential for large-scale electricity generation, nuclear energy has emerged as a suitable option to meet the growing energy needs of countries while reducing reliance on fossil fuels. However, the integration of nuclear energy into a sustainable economic framework is subject to various institutional factors. This study examines the effect of institutional quality on the relationship between nuclear energy consumption and economic growth in selected OECD countries. This research examines the hypothesis that institutional quality plays an important role in shaping the relationship between nuclear energy consumption and economic growth. To achieve this goal, panel data analysis is used between 1995 and 2022 for a sample of OECD countries. The results of this research show us that in the long run, the effect of nuclear energy consumption and institutional quality on economic growth is positive and significant, but institutional quality limits the effect of nuclear energy on economic growth. These findings suggest that while institutional quality is an important factor, its benefits in relation to nuclear energy and economic growth might not always be straightforward. It is crucial for policymakers and industry leaders to balance institutional improvements with other strategic investments and consider the broader context in which nuclear energy operates.

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References

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