Energy Reports (Dec 2023)
Impact of governance quality on pollution in nuclear energy consuming countries in the European Union
Abstract
In view of, the recently launched European Action Plan to achieve zero pollution, the aim of this paper is to assess the impact of governance quality on pollution in the revised forms of the Environmental Kuznets Curve, namely the nuclear energy Kuznets curve and the renewable energy Kuznets curve. Using a methodological framework focusing on cross-sectional dependence and cross-sectional heterogeneity, the panel data approach is based on the Augmented Mean Group and Common Correlated Effects Mean Group estimators, as well as the panel causality test of Juodis, Karavias and Sarafidis (2021). Taking the reference period 2002–2019 the analysis for a sample of countries that were the largest consumers of nuclear energy in the European Union during this period, namely Belgium, Germany, France, Sweden, Czech Republic, Hungary, Slovakia, Spain, Finland, and The Netherlands, suggests that industry development is a source of pollution, while governance could control environmental degradation through certain measures. Specifically, a lack of sufficient environmental laws, regulations, and policies enhances pollution even in countries with political stability and effective governance. These findings form the basis for future policy recommendations that should consider more green jobs and green technology in industry and a better legislative framework for pollution control
