Progress in nuclear energy with carbon pricing to achieve environmental sustainability agenda: on the edge of one’s seat

Abstract

The Paris agreement (COP21) emphasized the need to progress toward using low-carbon energy technologies, including nuclear power, that is favorably looked for to meet the challenges to reduce an enormous increase in global temperature to below 2 °C. The cost of carbon pollution is highly induced by the energy sector that damages the global environmental sustainability plan. The alternative and nuclear energy demand is an optimized solution to decrease carbon damages, which can be better work under the imposition of carbon taxes on polluting industries. This study works in a given direction to analyze the role of alternative and nuclear energy, carbon pricing, FDI inflows, fossil fuel combustion, economic growth, and population density on the cost of carbon pollution in a panel of 90 selected countries for a period of 1995–2018. The results confirmed a “nuclear energy-augmented environmental Kuznets curve” with a turning point of 39.974% of total energy demand across countries. The result implies that alternative and nuclear energy initially increases carbon damages. Simultaneously, it decreases at the later stages of atomic energy expansion; thus, nuclear power growth is imperative for long-term sustainable development. A positive relationship is found between carbon pricing and carbon damage, while a negative relationship is between fossil fuel combustion and carbon damage across countries. The results conclude that expansion in nuclear energy would help reduce the cost of carbon pollution to achieve environmental sustainability agenda across countries.