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The role of forest and agriculture towards environmental fortification: designing a sustainable policy framework for top forested countries

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Abstract

Climate change has been a concern in the public sphere throughout the decades. Also, a constant change in climate as a result of geologic history is posing a global problem. Many earlier studies have focused on various factors; however, this study intends to contribute distinctly; therefore, we select 22 countries among the top 30 forested countries in the world declared by CEO-WORLD in 2020. The study explores the relationship between energy consumption, agricultural value-added, agricultural land, forest area, and real GDP with CO2 emissions from 1980 to 2019. For analysis, we account for heterogeneity in the cross sections by developing a novel panel nonlinear autoregressive distributed lag model in order to capture within-group variations, which is the panel data form of the Shin et al. (2014) model. The Pesaran 2007, CADF and CIPS panel unit root testing results indicate that the investigated variables are stationary at their first differences. The empirical finding  shows  positive and negative shocks in electricity consumption and agricultural land have a favourable and statistically significant long-term effect on CO2 emissions. Positive shocks in agricultural value-added and forest areas have a significant adverse influence on environmental degradation, while negative shocks have a substantial long-term positive effect on CO2 emissions. Positive shock in real GDP is insignificant, whereas negative shock shows adverse and substantial long-term impacts on CO2 emissions. This research's contributions will help policymakers evaluate energy needs and implement clean energy; combating deforestation will help reduce CO2 emissions and improve the quality of the environment and climate change.

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Abbreviations

NARDL:

Nonlinear Autoregressive Distributed Lag

CO2 :

Carbon Dioxide Emissions

GDP:

Gross Domestic Products

EC:

Energy Consumption

AVA:

Agricultural Value-Added

EKC:

Environmental Kuznets Curve

CADF:

Cross-Sectionally Augmented Dickey-Fuller

ARDL:

Autoregressive Distributed Lag

MOLS:

Modified Ordinary Least Squares

DOLS:

Dynamic Ordinary Least Squares

REDD:

Reducing Emissions From Deforestation And Forest Degradation

QBtu:

Quadrillion British Thermal Units

CSD:

Cross-Section Dependence

SCH:

Slope Coefficient Homogeneity

CSI:

Cross-Sectional Independence

AL:

Agricultural Land

Min:

Minimum

Max:

Maximum

I(1):

Integrated of Order One

EU:

European Union

MG:

Pooled Mean Group

MG:

Mean Group

CS:

Cross-Sectional

“i”:

Country

“t”:

Period

ECT:

Error Correction Term

ε:

Error Term

Sd:

Standard Error

GHS:

Greenhouse Gas

U.S.:

United States

FA:

Forest Area

UN:

United Nation

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Authors and Affiliations

  1. School of Economics, Shanghai University, No. 99, Shangda Road, Baoshan Campus, Baoshan District, Shanghai, China

    Kashif Raza Abbasi

  2. Department of Business Administration, Faculty of Management Sciences, ILMA University, Karachi, Pakistan

    Kashif Raza Abbasi

  3. Department of Computing and Informatics, Bournemouth University, Poole, UK

    Festus Fatai Adedoyin

  4. Department of Finance, Accounting and Economics, University of Pitesti, Str. Targu din Vale, no.1, Pitesti, 110040, Arges, Romania

    Magdalena Radulescu

  5. Doctoral School of University “Lucian Blaga” Sibiu, Bd. Victoriei, no.10, 550024, Sibiu, Romania

    Magdalena Radulescu

  6. Department of Economics, Mirpur University of Science and Technology (MUST, Mirpur, 10250, Azad Jammu and Kashmir, Pakistan

    Khadim Hussain

  7. Department of Economics, Birmingham Business School, University of Birmingham, Edgbaston, Birmingham, B15 2TT, England, UK

    Sultan Salem

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  1. Kashif Raza Abbasi
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Abbasi, K.R., Adedoyin, F.F., Radulescu, M. et al. The role of forest and agriculture towards environmental fortification: designing a sustainable policy framework for top forested countries. Environ Dev Sustain 24, 8639–8666 (2022). https://doi.org/10.1007/s10668-021-01803-4

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