Relationship between environment and economic growth in the context of ecological footprint: The case of OECD countries

Ensuring the protection of the environment is of great importance within the scope of countries' sustainable growth goals. However, the reliance of countries on fossil fuels to meet their energy needs leads to an increase in CO2 emissions, negatively impacting environmental pollution. The rise in CO2 emissions creates a greenhouse effect in the atmosphere, giving rise to severe problems such as global warming and climate change, which deeply affect human life. To minimize the resulting issues, it is crucial to utilize resources efficiently and consciously, incorporating clean energy sources as alternatives to fossil fuels in production. These necessary measures to reduce environmental pollution contribute to a lower ecological footprint and, as a result, a decrease in CO2 emissions generated from production and consumption activities, leading to a more sustainable environment. Therefore, reducing the ecological footprint is highly significant. This study examines the relationship between environmental pollution and economic growth in OECD countries in the context of ecological footprint using the Soft Transition Panel Regression (PSTR) model for the period 1995-2018. The analysis results indicate that the ecological footprint, defined as the threshold variable, is found to be 1,63 kha. When the per capita ecological footprint is below the threshold level, economic growth reduces environmental pollution, while it increases environmental pollution when it is above the threshold level. Additionally, the study finds that the Environmental Kuznets Curve is valid for the group of countries considered. Therefore, promoting eco-friendly technologies, enhancing energy efficiency, and strengthening waste management policies serve as solutions to reduce environmental pollution.