Nuclear energy consumption, oil consumption and economic growth in G-6 countries: Bootstrap panel causality test

This study applies bootstrap panel Granger causality to test whether energy consumption promotes economic growth using data from G‐6 countries over the period of 1971–2010. Both nuclear and oil consumption data are used in this study. Regarding the nuclear consumption‐economic growth nexus, nuclear consumption causes economic growth in Japan, the UK, and the US; economic growth causes nuclear consumption in the US; nuclear consumption and economic growth show no causal relation in Canada, France and Germany. Regarding oil consumption‐economic growth nexus, we find that there is one‐way causality from economic growth to oil consumption only in the US, and that oil consumption does not Granger cause economic growth in G‐6 countries except Germany and Japan. Our results have important policy implications for the G‐6 countries within the context of economic development.