Nuclear and Non-nuclear Energy Consumption and Economic Growth in Taiwan

Abstract

This study investigates the linear and nonlinear causality among nuclear energy consumption (NEC), non-nuclear energy consumption (N-NEC), and real gross domestic product (RGDP) for Taiwan data from 1980–2010. The Hiemstra and Jones (1994) test for nonlinear causality reveals the absence of linear Granger causality among NEC, N-NEC and RGDP which supports the unidirectional causality from NEC (RGDP) to RGDP (N-NEC). This result provides empirical evidence for the energy policy formulators to encourage NEC and limit N-NEC to achieve economic growth.