How Does Financial Development Affect the Volume of Nuclear Energy? Assessing The Relationship Between Nuclear Energy and Finance

Abstract

The main objective of this study is to reveal the relationship between the volume of nuclear energy, which is becoming increasingly important as a clean energy source in today's world where the effects of environmental pollution are widely discussed, and financial indicators within the framework of nuclear energy producing countries. The study analyzes the relationship between the variables of domestic bank credit to the private sector (per capita) and gross capital formation (per capita) and the volume of nuclear energy per capita for the period 1970-2022. In the study, the panel cointegration test developed by Olayeni et al. (2020) was used to determine the long-run relationship between the variables. In addition, the coefficients were calculated using the cointegration estimator proposed by Bai (2009). According to the results of panel Fourier cointegration test, cointegration relationship is detected in all panel countries according to both PP and GLS values. According to the results of panel cointegration coefficient estimates, the CRD variable has a negative effect on the NUC variable, and the CAP variable has a positive and statistically significant effect. To the best of our knowledge, there is no study in the literature that examines the relationship between the per capita amount of bank loans to the private sector, the per capita amount of gross capital, and nuclear energy to understand the dynamics and impact of the financial and energy sectors on environmental and economic sustainability. It is thought that the study will make an important contribution to the related literature in this respect.