Pakistan's safe nuclear energy generation: An essential source to target sustainable development

Abstract

This research examines the roles of nuclear energy generation, primary energy use, and finance on economic growth and environmental degradation in Pakistan using the extended period between 1972 and 2020. To this end, the study adopted a mix of conventional and third-generation econometric approaches that can counter structural breaks and also applied the VECM-based Granger causal test in the Seemingly Unrelated Regression (SUR) framework to detect the causal linkages. The Maki cointegration test supported an equilibrium association between the modelled variables. The coefficients of long-run estimates reveal that nuclear energy accelerates the country's economic growth. Similarly, it is a compelling element in curbing environmental pollution. Finance and trade openness support economic growth and are proven indicators of environmental degradation in Pakistan. The causal results indicated that nuclear energy is causing the environment and economic growth unidirectionally, while primary energy consumption bidirectionally causes the environment. Finally, the study results have proposed significant policy proposals for the policymakers for their theory, knowledge and practice.