Does Nuclear Energy Consumption Improve Environment? Empirical Evidence from India

This paper attempts to investigate the long run and short run relationship between nuclear energy consumption and carbon dioxide emission in India within energy consumption growth-environment deterioration framework, over the period of 1969-2014 using a multivariate model wherein coal consumption, oil consumption and trade openness are also included as additional variables. The empirical results indicate that there is a long run relationship among the competing variables. We find that nuclear energy consumption indeed reduces CO₂ emission in both short run and long run in India. On the other hand, non-renewable energy sources (oil and coal) increase CO₂ emission in both long run and short run. Based on these findings, it is suggested that government should shift from nonrenewable energy sources to nuclear energy to attain faster, inclusive and sustained economic growth.