Analyzing the mechanism between nuclear energy consumption and carbon emissions: Fresh insights from novel bootstrap rolling-window approach

Abstract

This research utilizes a bootstrap rolling-window (BRW) causality test to explore the causal interrelationship between nuclear energy consumption (NUC) and carbon dioxide emissions (CO2) in 6 developed countries from 1980 to 2020. When there are structural shifts in the full-sample time series, empirical research exploring causality between two-time series generates erroneous conclusions. On the other hand, the BRW method allows researchers to find potential time-varying causality between time series using sub-sample data. The outcomes of the BRW causality test disclosed the following results: (i) a unidirectional negative causality from NUC to CO2 without feedback was found for Japan; (ii) a negative causality at sup-sample periods from NUC to CO2 surfaced at the sub-sample period while a positive causality surfaced from NUC to CO2 in sub-sample period for the United States of America (USA) and France; (iii) a negative feedback causality between NUC and CO2 was found For Canada; (iv) a positive unidirectional causality surfaced from NUC to CO2 was found for Germany, which implies that consumption of NUC worsens the environment in the sub-sampled period. The results may have policy consequences for the selected developed countries regarding NUC and CO2 nexus.