Nuclear energy consumption and economic growth in Korea

Abstract

This paper investigates the short- and long-run causality issues between nuclear energy consumption and economic growth in Korea by applying modern time-series techniques. It employs annual data covering the period 1977–2002. Tests for unit roots, co-integration, and Granger-causality based on error-correction model are presented. The results show that unidirectional causality runs from nuclear energy consumption to economic growth in Korea without any feedback effect. This means that in order not to adversely affect economic growth, the Korean government should endeavor to overcome the constraints on nuclear energy consumption.