Investigation of Displacement between Main Clean Energy Types: Evidence from Leading Developed Countries through Quantile Approaches

Abstract

The role of energy transition has been developing under increasing negative impacts of environmental problems. Because there are various options, there is a displacement risk among alternatives. Therefore, it is critical to ensure that clean energy use (EU) alternatives do not displace others. Considering this critical point, the study investigates whether there is a displacement between types of renewable and nuclear energy. So, the study examines leading developed countries (Canada, France, United Kingdom, & United States) by considering impact of three main renewable energy use (REU) types (hydro-HEU, solar-SEU, wind-WEU) on nuclear energy use (NEU), using data from 1999/Q2 to 2023/Q4, and applying quantile approaches. The results reveal that (i) HEU (WEU) displaces NEU in Canada and United States (Canada); (ii) SEU mainly displaces NEU in the countries except United Kingdom; (iii) the higher displacing impact of REU types is seen in Canada, while it is partially displacement for France and United States, and almost no displacement for United Kingdom. Overall, the results demonstrate that all REU types have a certain displacement in Canada, whereas there are partial displacement for other REU types across the countries. Hence, a harmonized and comprehensive energy transition planning among clean energy types is critical.