Decoupling Development From Emissions: The Role of Economic Growth, Urbanization, Forest Carrying Capacity, and Sustainable Development in the E7 Bloc

ABSTRACT Ecological degradation (ED) has emerged as a critical barrier to sustainable development in emerging economies, particularly amid rapid industrial growth and urban expansion. Understanding the multifactorial causes of ED is essential for balancing economic ambitions with environmental stewardship. This study investigates the determinants of ED in the E7 economies, Brazil, China, India, Indonesia, Mexico, Russia, and Turkey, by examining the roles of economic growth (EG), urbanization (URB), forest resilience factor (FRF), and sustainability performance index (SPI). Rooted in the environmental Kuznets curve, Urban Sustainability Theory, and Sustainable Development Framework, the analysis employs a dual‐model approach: method of moments quantile regression (MMQR) reveals heterogeneous effects across emission quantiles, while Driscoll–Kraay fixed effects (DKFE) accounts for panel‐specific challenges such as heteroscedasticity, autocorrelation, and cross‐sectional dependence. MMQR results show that EG increases ED across all quantiles, whereas URB reduces emissions at higher levels, suggesting energy‐efficient urban transitions. In contrast, DKFE confirms the positive effects of EG, URB, and SPI on ED, pointing to implementation gaps in sustainability policies. These findings imply that while economic and urban dynamics are key contributors to emissions, FRF and effective policy frameworks can buffer these effects. Specific policy measures, like urban greening in India and China, enhanced forest governance in Brazil and Russia, and institutional strengthening in Indonesia and Turkey, are necessary. This research aligns with SDG 13 (Climate Action) and SDG 15 (Life on Land), reinforcing that sustainable development hinges on ecological accountability alongside growth‐oriented strategies.