Research Article

SUSTAINABILITY IN E7 ECONOMIES: TESTING THE EKC HYPOTHESIS WITHIN THE FRAMEWORK OF ECONOMIC GROWTH AND ECOLOGICAL FOOTPRINT DYNAMICS

Volume: 27 Number: 2 April 26, 2026
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SUSTAINABILITY IN E7 ECONOMIES: TESTING THE EKC HYPOTHESIS WITHIN THE FRAMEWORK OF ECONOMIC GROWTH AND ECOLOGICAL FOOTPRINT DYNAMICS

Abstract

Rapidly changing economic and environmental conditions have brought the concept of sustainability to the forefront. Rapid industrialization, urbanization and technological developments have expanded the boundaries of economic growth while simultaneously placing significant pressure on natural resources. The E7 countries (Brazil, China, India, Indonesia, Mexico, Russia and Türkiye) have been gaining an increasingly significant role in global production and energy consumption through their rapid growth and industrialization processes. As these countries account for a substantial share of global economic growth and energy use, their rapid industrialization and urbanization have made them vulnerable in terms of environmental sustainability. This situation necessitates an examination of the relationship between economic growth and environmental degradation in the sample of these countries. In this context, this study examines the determinants of the ecological footprint (EFP) in E7 countries using panel data methods. The analysis employs variables such as real GDP per capita, renewable and non-renewable energy consumption, trade openness rate, gross fixed capital formation and labor force participation rate. Our study aims to reveal the dynamic relationships between variables using panel data econometric methods. The findings confirm the Environmental Kuznets Curve (EKC) hypothesis between economic growth and EFP. Non-renewable energy consumption increases environmental pressure, whereas renewable energy has a mitigating effect. In addition, gross fixed capital formation and labor force participation rate have increased the EFP, while trade openness rate was found to be statistically insignificant. The inclusion of labor market dynamics and capital formation, in addition to economic growth and energy consumption, ensures a novel contribution to the current literature on E7 countries by shifting the focus from a purely production-oriented approach to one centered on structural transformation.

Keywords

References

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Details

Primary Language

English

Subjects

Econometric and Statistical Methods , Economic Models and Forecasting , Panel Data Analysis

Journal Section

Research Article

Publication Date

April 26, 2026

Submission Date

November 9, 2025

Acceptance Date

February 14, 2026

Published in Issue

Year 2026 Volume: 27 Number: 2

APA
Güleç, O., Utlu Koçdemir, S., & Özyıldız, T. (2026). SUSTAINABILITY IN E7 ECONOMIES: TESTING THE EKC HYPOTHESIS WITHIN THE FRAMEWORK OF ECONOMIC GROWTH AND ECOLOGICAL FOOTPRINT DYNAMICS. Cumhuriyet Üniversitesi İktisadi Ve İdari Bilimler Dergisi, 27(2), 699-726. https://doi.org/10.37880/cumuiibf.1820233

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