IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2023-05-18.html
   My bibliography  Save this article

Nuclear Energy Generation, Fossil Fuel Price, Energy Mix Generation, Economic Growth, FDI Inflow and CO2 Emission: A Case Study on Developed and Developing Countries in the Asia Pacific Region

Author

Listed:
  • Tri Wahyu Adi

    (Faculty of Technology and Energy Business, Institute Technology of PLN, Indonesia,)

  • Pawenary Pawenary

    (Department of Master of Electrical Engineering, Institute Technology of PLN, Indonesia.)

  • Eri Prabowo

    (Faculty of Technology and Energy Business, Institute Technology of PLN, Indonesia,)

Abstract

The net-zero scenario by 2050 (NZE) is a normative scenario that sets the stage for the global energy sector to reach net-zero emissions by 2050. This research aims to explore nuclear energy generation as a potential technological change in a future power generation base load, the factors that are affected and the effects on economic growth, FDI inflow, and CO2 emission in developed and developing countries in the Asia Pacific. The empirical analysis uses time-series data of nuclear energy generation, fossil fuel price, energy mix generation, economic growth, FDI inflow, and CO2 emission in the period 2001 – 2021. The inferential statistical method used to analyse in this research is a component-based using SmartPLS 3.2.9. This research find that Fossil fuel prices have no significant positive effect on nuclear energy generation in developed countries, and the opposite in developing countries, while a negative not significant effect on CO2 emission in both developed and developing countries, with a positive significant effect on economic growth in developed countries and the opposite in developing countries, with a negative significant effect on FDI inflow in developed countries and the opposite in developing countries, with a negative not significant effect on energy mix generation in developed countries and the opposite in developing countries. Nuclear energy generation has a negative not significant effect on energy mix generation in developed countries and the opposite in developing countries, with a negative not significant effect on economic growth in developed countries and the opposite in developing countries, with a positive not significant effect on FDI inflow in developed countries and the opposite in developing countries, with a positive significant effect on CO2 emission in developed countries and the opposite in developing countries. The energy mix generation find has a negative significant effect on economic growth in developed countries and the opposite in developing countries, with a positive significant effect on FDI Inflow and CO2 emission in both developed and developing countries. Economic growth has a negative not significant effect on CO2 emission in both developed and developing countries. FDI inflow has a negative significant effect on CO2 emission in developed countries and the opposite in developing countries.

Suggested Citation

  • Tri Wahyu Adi & Pawenary Pawenary & Eri Prabowo, 2023. "Nuclear Energy Generation, Fossil Fuel Price, Energy Mix Generation, Economic Growth, FDI Inflow and CO2 Emission: A Case Study on Developed and Developing Countries in the Asia Pacific Region," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 144-156, September.
    • Handle: RePEc:eco:journ2:2023-05-18
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/14525/7471
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/14525
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Haug, Alfred A. & Ucal, Meltem, 2019. "The role of trade and FDI for CO2 emissions in Turkey: Nonlinear relationships," Energy Economics, Elsevier, vol. 81(C), pages 297-307.
    2. Wolde-Rufael, Yemane, 2010. "Bounds test approach to cointegration and causality between nuclear energy consumption and economic growth in India," Energy Policy, Elsevier, vol. 38(1), pages 52-58, January.
    3. Vujić, Jasmina & Antić, Dragoljub P. & Vukmirović, Zorka, 2012. "Environmental impact and cost analysis of coal versus nuclear power: The U.S. case," Energy, Elsevier, vol. 45(1), pages 31-42.
    4. Muhammad Usman & Atif Jahanger & Muhammad Sohail Amjad Makhdum & Magdalena Radulescu & Daniel Balsalobre-Lorente & Elena Jianu, 2022. "An Empirical Investigation of Ecological Footprint Using Nuclear Energy, Industrialization, Fossil Fuels and Foreign Direct Investment," Energies, MDPI, vol. 15(17), pages 1-26, September.
    5. Apergis, Nicholas & Payne, James E., 2010. "Coal consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(3), pages 1353-1359, March.
    6. Wolde-Rufael, Yemane & Menyah, Kojo, 2010. "Nuclear energy consumption and economic growth in nine developed countries," Energy Economics, Elsevier, vol. 32(3), pages 550-556, May.
    7. Gao, Jing & Nelson, Robert & Zhang, Lei, 2013. "Substitution in the electric power industry: An interregional comparison in the eastern US," Energy Economics, Elsevier, vol. 40(C), pages 316-325.
    8. Lau, Lin-Sea & Choong, Chee-Keong & Ng, Cheong-Fatt & Liew, Feng-Mei & Ching, Suet-Ling, 2019. "Is nuclear energy clean? Revisit of Environmental Kuznets Curve hypothesis in OECD countries," Economic Modelling, Elsevier, vol. 77(C), pages 12-20.
    9. Neha Saini & Monica Sighania, 2019. "Environmental impact of economic growth, emission and FDI: systematic review of reviews," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 11(1), pages 81-134, May.
    10. Yoo, Seung-Hoon & Ku, Se-Ju, 2009. "Causal relationship between nuclear energy consumption and economic growth: A multi-country analysis," Energy Policy, Elsevier, vol. 37(5), pages 1905-1913, May.
    11. Feretic, Danilo & Tomsic, Zeljko, 2005. "Probabilistic analysis of electrical energy costs comparing: production costs for gas, coal and nuclear power plants," Energy Policy, Elsevier, vol. 33(1), pages 5-13, January.
    12. Bahareh Oryani & Yoonmo Koo & Shahabaldin Rezania, 2020. "Structural Vector Autoregressive Approach to Evaluate the Impact of Electricity Generation Mix on Economic Growth and CO 2 Emissions in Iran," Energies, MDPI, vol. 13(16), pages 1-16, August.
    13. Apergis, Nicholas & Payne, James E., 2010. "Renewable energy consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(1), pages 656-660, January.
    14. Tri Wahyu Adi & Eri Prabowo & Oetami Prasadjaningsih, 2022. "Influence of Electricity Consumption of Industrial and Business, Electricity Price, Inflation and Interest Rate on GDP and Investments in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 331-340, May.
    15. Linn, Joshua & Muehlenbachs, Lucija, 2018. "The heterogeneous impacts of low natural gas prices on consumers and the environment," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 1-28.
    16. Lee, Chien-Chiang & Chiu, Yi-Bin, 2011. "Oil prices, nuclear energy consumption, and economic growth: New evidence using a heterogeneous panel analysis," Energy Policy, Elsevier, vol. 39(4), pages 2111-2120, April.
    17. Abdul Rehman & Hengyun Ma & Magdalena Radulescu & Crenguta Ileana Sinisi & Loredana Maria Paunescu & MD Shabbir Alam & Rafael Alvarado, 2021. "The Energy Mix Dilemma and Environmental Sustainability: Interaction among Greenhouse Gas Emissions, Nuclear Energy, Urban Agglomeration, and Economic Growth," Energies, MDPI, vol. 14(22), pages 1-21, November.
    18. Muellner, Nikolaus & Arnold, Nikolaus & Gufler, Klaus & Kromp, Wolfgang & Renneberg, Wolfgang & Liebert, Wolfgang, 2021. "Nuclear energy - The solution to climate change?," Energy Policy, Elsevier, vol. 155(C).
    19. Sims, Ralph E. H. & Rogner, Hans-Holger & Gregory, Ken, 2003. "Carbon emission and mitigation cost comparisons between fossil fuel, nuclear and renewable energy resources for electricity generation," Energy Policy, Elsevier, vol. 31(13), pages 1315-1326, October.
    20. Tri Wahyu Adi, 2022. "The International Gas and Crude Oil Price Variability Effect on Indonesian Coal Mining Companies Listed at IDX," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 1-10, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Azimi, Mohammad Naim & Rahman, Mohammad Mafizur & Maraseni, Tek, 2025. "Powering progress: The interplay of energy security and institutional quality in driving economic growth," Applied Energy, Elsevier, vol. 378(PA).
    2. Tri Wahyu Adi & Edy Susanto & Ade Caswito & R. Sapto Yuwono & Tarwaji Warsokusumo & A. Y. Agung Nugroho, 2024. "Influence of Fossil Fuel Prices on Fossil and Renewable Electricity Consumptions, GDP, Inflation and Greenflation: A Case Study in the Asia Pacific Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 48-56, July.
    3. Susilawati & Alpon Satrianto, 2024. "Influence of Economy, Energy, and Population on Foreign Direct Investment and CO2 Emissions in ASEAN-5 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 10-18, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Omri, Anis & Ben Mabrouk, Nejah & Sassi-Tmar, Amel, 2015. "Modeling the causal linkages between nuclear energy, renewable energy and economic growth in developed and developing countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1012-1022.
    2. Tiba, Sofien & Omri, Anis, 2017. "Literature survey on the relationships between energy, environment and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1129-1146.
    3. Anis Omri & Anissa Chaibi, 2014. "Nuclear energy, renewable energy, and economic growth in developed and developing countries : A modelling analysis from simultaneous-equation models," Working Papers 2014-188, Department of Research, Ipag Business School.
    4. Pao, Hsiao-Tien & Fu, Hsin-Chia, 2013. "The causal relationship between energy resources and economic growth in Brazil," Energy Policy, Elsevier, vol. 61(C), pages 793-801.
    5. Luqman, Muhammad & Ahmad, Najid & Bakhsh, Khuda, 2019. "Nuclear energy, renewable energy and economic growth in Pakistan: Evidence from non-linear autoregressive distributed lag model," Renewable Energy, Elsevier, vol. 139(C), pages 1299-1309.
    6. Abdul Hayy Haziq Mohamad & Muhamad Rias K. V. Zainuddin & Rossazana Ab-Rahim, 2023. "Does Renewable Energy Transition in the USA and China Overcome Environmental Degradation?," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 234-243, November.
    7. Sofien, Tiba & Omri, Anis, 2016. "Literature survey on the relationships between energy variables, environment and economic growth," MPRA Paper 82555, University Library of Munich, Germany, revised 14 Sep 2016.
    8. Haider Mahmood & Muhammad Shahid Hassan & Soumen Rej & Maham Furqan, 2023. "The Environmental Kuznets Curve and Renewable Energy Consumption: A Review," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 279-291, May.
    9. Lean, Hooi Hooi & Smyth, Russell, 2014. "Disaggregated energy demand by fuel type and economic growth in Malaysia," Applied Energy, Elsevier, vol. 132(C), pages 168-177.
    10. Smyth, Russell & Narayan, Paresh Kumar, 2015. "Applied econometrics and implications for energy economics research," Energy Economics, Elsevier, vol. 50(C), pages 351-358.
    11. Wong, Siang Leng & Chang, Youngho & Chia, Wai-Mun, 2013. "Energy consumption, energy R&D and real GDP in OECD countries with and without oil reserves," Energy Economics, Elsevier, vol. 40(C), pages 51-60.
    12. Naser, Hanan, 2015. "Analysing the long-run relationship among oil market, nuclear energy consumption, and economic growth: An evidence from emerging economies," Energy, Elsevier, vol. 89(C), pages 421-434.
    13. Omri, Anis, 2014. "An international literature survey on energy-economic growth nexus: Evidence from country-specific studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 951-959.
    14. Bashiri Behmiri, Niaz & Pires Manso, José R., 2012. "Does Portuguese economy support crude oil conservation hypothesis?," Energy Policy, Elsevier, vol. 45(C), pages 628-634.
    15. Gorkemli Kazar & Arthur Kazar, 2014. "The Renewable Energy Production-Economic Development Nexus," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 312-319.
    16. Lee, Chien-Chiang & Chiu, Yi-Bin, 2011. "Oil prices, nuclear energy consumption, and economic growth: New evidence using a heterogeneous panel analysis," Energy Policy, Elsevier, vol. 39(4), pages 2111-2120, April.
    17. Bilgili, Faik & Koçak, Emrah & Bulut, Ümit & Kuşkaya, Sevda, 2017. "Can biomass energy be an efficient policy tool for sustainable development?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 830-845.
    18. Lee, Chien-Chiang & Chiu, Yi-Bin, 2011. "Nuclear energy consumption, oil prices, and economic growth: Evidence from highly industrialized countries," Energy Economics, Elsevier, vol. 33(2), pages 236-248, March.
    19. Man-Keun Kim & Kangil Lee, 2015. "Dynamic Interactions between Carbon and Energy Prices in the U.S. Regional Greenhouse Gas Initiative," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 494-501.
    20. Hamit-Haggar, Mahamat, 2016. "Clean energy-growth nexus in sub-Saharan Africa: Evidence from cross-sectionally dependent heterogeneous panel with structural breaks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1237-1244.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2023-05-18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.