On the income–nuclear energy–CO2 emissions nexus revisited

This paper seeks to contribute to the debate over the income–nuclear enery–CO₂ emissions nexus by taking specific account of the possible endogeneity of income, which has been largely ignored by early studies. A multivariate cointegrated vector autoregression (CVAR) is applied to top six nuclear generating countries. We find that nuclear energy tends to reduce CO₂ emission for all countries. It is also found that income has a beneficial effect on the environment only in some countries. Finally, we find that CO₂ emissions and income are indeed determined simultaneously, while nuclear energy acts exogenously, indicating that nuclear energy is the driving variable, which significantly influences the long-run movements of CO₂ emissions and income, but is not affected by CO₂ emissions and income in the model.