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<p>This study investigates the long-run relationship between economic growth and environmental degradation in the E7 economies within an extended Environmental Kuznets Curve (EKC) framework. Unlike conventional EKC studies relying solely on income effects and CO₂ emissions, this analysis employs ecological footprint as a broader sustainability indicator and incorporates energy intensity, trade openness, and market concentration as structural determinants. Using second-generation panel econometric techniques that account for cross-sectional dependence and slope heterogeneity over the period 1996–2020, the findings reveal that the EKC hypothesis is largely rejected for the E7 panel as a whole and holds only for Türkiye. The results further indicate significant heterogeneity at the country level: trade openness exacerbates environmental degradation in Russia, while market concentration is associated with reduced ecological pressure in Indonesia. Energy intensity consistently increases ecological footprint across several countries, highlighting the role of structural production inefficiencies. These findings demonstrate that environmental outcomes in E7 economies are shaped more by structural economic characteristics than by income dynamics alone, underscoring the importance of targeted structural reforms for sustainable development.</p> Graphical Abstract <p></p>

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Balancing development and green goals: the role of trade openness, energy intensity, and market concentration in E7 countries

  • 期刊论文

  • 出版模式：

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  • 发表日期：

    2026年5月4日

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  • Yunus Emre Turan,
  • Dinara Zubaidullina,
  • Mehmet Aydin

摘要

This study investigates the long-run relationship between economic growth and environmental degradation in the E7 economies within an extended Environmental Kuznets Curve (EKC) framework. Unlike conventional EKC studies relying solely on income effects and CO₂ emissions, this analysis employs ecological footprint as a broader sustainability indicator and incorporates energy intensity, trade openness, and market concentration as structural determinants. Using second-generation panel econometric techniques that account for cross-sectional dependence and slope heterogeneity over the period 1996–2020, the findings reveal that the EKC hypothesis is largely rejected for the E7 panel as a whole and holds only for Türkiye. The results further indicate significant heterogeneity at the country level: trade openness exacerbates environmental degradation in Russia, while market concentration is associated with reduced ecological pressure in Indonesia. Energy intensity consistently increases ecological footprint across several countries, highlighting the role of structural production inefficiencies. These findings demonstrate that environmental outcomes in E7 economies are shaped more by structural economic characteristics than by income dynamics alone, underscoring the importance of targeted structural reforms for sustainable development.

Graphical Abstract