Causal Relationship between Nuclear Energy Consumption and Economic Growth: Case of Spain

  • Korhan Gokmenoglu Eastern Mediterranean University, Mersin, Turkey
  • Mohamad Kaakeh Eastern Mediterranean University, Mersin, Turkey
Keywords: Nuclear Energy Consumption, Economic Growth

Abstract

This study empirically observed the nexus between nuclear energy consumption and economic growth in the country of Spain. Unit root and stationarity tests, Johansen cointegration tests, vector error correction models (VECM), and Granger causality tests were applied to annual data for the years 1968 to 2014. Empirical results confirmed the existence of a long-term equilibrium relationship between two variables and showed that nuclear energy consumption using Granger causality tests causes economic growth, which leads to important policy implications.

Spain is an oil-importing country. As environmental concerns increase, policy makers should consider increasing the share of nuclear power in the country’s energy portfolio since it provides energy with no carbon emissions. However, policy makers should consider the safety measures and the correct disposal methodologies for nuclear waste.

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Author Biographies

Korhan Gokmenoglu, Eastern Mediterranean University, Mersin, Turkey

Korhan Gokmenoglu is an associate professor of banking and finance department at Eastern Mediterranean University. He also studied at the University of California San Diego, Paris Essec University and Middle East Technical University. His research interests include energy modeling, finance and macroeconomics. He is the corresponding author for this article. Email: korhan.gokmenoglu@emu.edu.tr.

Mohamad Kaakeh, Eastern Mediterranean University, Mersin, Turkey

Mohamad Kaakeh is a master student of banking and finance at Eastern Mediterranean University. He has received his bachelor of science degree in banking and finance. His research interests include finance and energy economics. Email: mohamad.kaakeh@emu.edu.tr.

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