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Testing the pollution haven hypothesis on the pathway of sustainable development: Accounting the role of nuclear energy consumption

  • Danish, Danish (School of Economics and Trade, Guangdong University of Foreign Studies) ;
  • Ud-Din Khan, Salah (Sustainable Energy Technologies (SET) Center, College of Engineering, King Saud University) ;
  • Ahmad, Ashfaq (Department of Chemistry, College of Science, King Saud University)
  • Received : 2020.12.10
  • Accepted : 2021.02.09
  • Published : 2021.08.25

Abstract

The environmental effects of China's nuclear energy consumption in a dynamic framework of the pollution haven hypothesis are examined. This study uses a dynamic autoregressive distributed lag simulation approach. Empirical evidence confirms that the pollution haven hypothesis does not exist for China; i.e., foreign direct investment plays a promising role in influencing environmental outcomes. Furthermore, empirical results concluded positive contribution of nuclear energy in pollution mitigation. From the results it is expected that encouraging foreign investment to increase generation of nuclear energy would benefit environmental quality by reducing CO2 emissions.

Keywords

Acknowledgement

The authors express their gratitude to the Deanship of Scientific Research at King Saud University for funding this work through research grant number RG-1441-384.

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