The Relationship between Nuclear Energy Consumption and Economic Growth: Evidence from Switzerland
Environmental Research Letters, 15, 2020, DOI: 10.1088/1748-9326/abadcd, ISSN: 1748-9326
Posted: 18 Feb 2021
Date Written: 2020
This study aims to investigate the relationship between nuclear energy consumption and economic growth in Switzerland over the period 1970–2018. We use data on capital, labour, and exports within a multivariate framework. Starting from the consideration that Switzerland has decided to phase out nuclear energy by 2034, we examine the effect of this structural economic-energy change in the country. To do so, two distinct estimation tools are performed. The first model, using a time-series approach, analyze the relationship between bivariate and multivariate causality. The second, using a Machine Learning methodology, test the results of the econometric modelling through an Artificial Neural Networks process. This last empirical procedure represents our original contribution with respect to the previous energy-GDP papers. The results, in the logarithmic propagation of neural networks, suggest a careful analysis of the process that will lead to the abandonment of nuclear energy in Switzerland to avoid adverse effects on economic growth.
Keywords: nuclear energy consumption; GDP; employment; capital stock; time-series; artificial neural networks
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