Incorporating Forests, Agriculture, and Energy Consumption in the Framework of the Environmental Kuznets Curve: A Dynamic Panel Data Approach

Resumen

Based on country-specific panel data from 1990–2014 for 86 different countries, we quantify the effects of forests and agricultural land in CO₂ emissions, using the framework of the Environmental Kuznets Curve (EKC). The results from the dynamic panel data method reveal that forests are an important determinant in reducing CO₂ emissions globally, but the effects vary by region. All else constant, we estimate a 0.11% decline in CO₂ emissions per 1% increase in the forest area globally. However, the agricultural sector is found to be a true CO₂ emitter. Our study provides additional empirical evidence for the roles of forests in regulating atmospheric CO₂, further reinforcing the importance of forests in global climate change policies.