Do renewable and nuclear R&D expenditures affect environmental quality in France? An assessment from the perspective of the LCC hypothesis and SDGs

Abstract

In the modern era, focusing on environmental concerns is as important as economic priorities for countries. Countries are therefore faced with the imperative to direct their investments towards renewable and nuclear energy, especially in the area of sustainable energy, in order to achieve the Sustainable Development Goals (SDGs). It is in this context that we have analysed the effect of R&D spending on renewable energy (RRD) and nuclear energy (NRD) on sustainable environmental quality (EQ) in France. We have done so within the framework of the load capacity curve (LCC) hypothesis. We also modeled the impact of fossil energy R&D (FRD). We first tested these impacts using a Fourier ARDL approach and used Fourier-based estimators (FMOLS, DOLS and CCR) for robustness. Empirical results of the study confirm that (i) the LCC hypothesis is not valid in France; (ii) FRD reduces EQ; and (iii) RRD and especially NRD has important and positive impact in ensuring sustainable. Our results clearly show that France can leverage economic growth, RRD and NRD to improve EQ, and that the French government should increase the budget allocated to RRD and NRD.