Aligning nuclear energy with the circular economy in OECD countries

Abstract

This paper aims to provide insight into the role of nuclear energy consumption in achieving circular economy status within the Organization of Economic and Co-operation Development (OECD) countries. Most of the scholarly work in this field examines the relationships between nuclear energy, income, and sustainability. However, a research gap exists regarding the effects of nuclear energy on the circular economy and vice versa. To address this knowledge gap, this research investigates the relationship between nuclear energy and the circular economy, while accounting for the role of environmental taxes and greenfield investments in OECD countries. Empirically, this study relies on the augmented mean group estimator and method of moment quantile regression approaches for conditional distribution on different quantiles. The findings suggest a robust positive relationship between nuclear energy and the circular economy, suggesting nuclear energy helps OECD countries to achieve economic circularity. In contrast, environmental taxes are associated with a detrimental effect on the circular economy. Furthermore, income and green field investment contribute to the achievement of a circular economy