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Nuclear Energy, Economic Growth, and the Environment: Optimal policies in a model with endogenous technical change and environmental constraints

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  • Fatouros, Nikos
  • Stengos, Thanasis

Abstract

We use a model of endogenous growth with vertical innovations, in order to derive optimal energy policy under uncertainty. Innovation can be directed to dirty, green, or nuclear technologies, which in turn can be used to produce different types of energy. We show that, nuclear energy usage, is not only a necessary welfare maximizing condition, but also a crucial determinant of economic growth in the long run. Lastly, we find no evidence supporting the traditional Environmental Kuznets Curve hypothesis under optimal policy implementation.

Suggested Citation

  • Fatouros, Nikos & Stengos, Thanasis, 2023. "Nuclear Energy, Economic Growth, and the Environment: Optimal policies in a model with endogenous technical change and environmental constraints," The Journal of Economic Asymmetries, Elsevier, vol. 28(C).
    • Handle: RePEc:eee:joecas:v:28:y:2023:i:c:s1703494923000373
    DOI: 10.1016/j.jeca.2023.e00325
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    Cited by:

    1. Hui Zhang & Haiqian Ke, 2022. "Spatial Spillover Effects of Directed Technical Change on Urban Carbon Intensity, Based on 283 Cities in China from 2008 to 2019," IJERPH, MDPI, vol. 19(3), pages 1-19, February.

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    More about this item

    Keywords

    Renewable energy; Growth; Nuclear energy; Innovation;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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