The Effect of Nuclear and Fossil Fuel Energy R&D Expenditures on Environmental Qualities in Canada

Abstract

Minimizing environmental problems and a clean ecosystem are at the top of countries' political agendas. Although Canada is an eco-friendly country, the rapid increase in its ecological footprint (EF) and the decreasing load capacity factor (LCF) in recent years make the analysis of Canada's environmental determinants important. In this context, the study analyzes the effects of fossil fuel and nuclear-related research and development (R&D) expenditures on the EF and LCF under the load capacity curve (LCC) and environmental Kuznets curve (EKC) conditions for the period 1981-2022, employing the Bayer-Hanck cointegration test and the Fourier-ADL approach. The findings indicate that the EKC and LCC hypotheses are valid for Canada, that fossil fuel R&D reduces the LCF, and that nuclear energy R&D contributes to environmental development. Therefore, Canadian policymakers should promote nuclear energy technologies and use the financial resources provided by economic expansion for clean energy purposes.