The role of nuclear energy in low carbon energy transition: evidence from panel data approach in EU

The aim of this study is to employ panel data approach to investigate determinants of total GHG emissions in all European Union (EU) economies in years 1990–2018 and evaluate the role of nuclear energy in climate change mitigation. It incorporates the following variables potentially affecting the greenhouse gas (GHG) emissions: economic—gross domestic product (GDP) per capita and GDP per capita squared to control for non-linear relationship between economic output and GHG emissions; structural—economic structure reflected in the share of manufacturing in total gross value added (GVA); energy-mix—share of nuclear power and renewable sources in total gross electricity production; environmental policy—the amount of environmental taxes (as a percentage of GDP) and the number of European Union Emission Trading System (EU ETS) allowances auctioned or sold (as a percentage of GDP per capita). The main findings of this study confirm the long-run relationship between GHG emissions, GDP level, and energy-mix variables. It endorses that higher share of nuclear power together with renewables in gross electricity production has significant impact on GHG emissions in the long run. In turn, it also validates the existence of the environmental Kuznets curve for selected countries.