Can Nuclear Energy Contribute to the Transition Toward a Low-carbon Economy? The Japanese Case

Abstract

<p>This paper examines the impact of nuclear energy consumption on CO<sub>2</sub> emissions in Japan over the period 1970–2010. Using an autoregressive distributed lag (ARDL) bounds testing approach, we develop bivariate and multivariate models specifying CO<sub>2</sub> emissions as the dependent variable. The results reveal that in the long run, there is no evidence that an increase in nuclear energy consumption leads to a decrease in CO<sub>2</sub> emissions other than price-induced effects from the decrease in electricity demand given the increase in electricity prices. These results suggest that whether nuclear energy is a low-carbon electricity generation option remains an open question from a long-term perspective.</p><p><strong>Keywords</strong>: nuclear energy, CO<sub>2</sub> emissions, cointegration, autoregressive distributed lag</p><p><strong>JEL Classifications</strong>: Q43, Q50</p>