Can forests realize the carbon neutrality dream? Evidence from a global sample.

ABSTRACT

The enlarge in economic activities and the urban population at the global level has brought about an increase in the demand for energy, food, and natural resources, as well as an exacerbation in global climate change concerns. In this respect, it is important to ensure the balance between global climate change and global economic activities. Therefore, a wide literature has emerged that searches for alternative solutions to improve climate change and carbon dioxide (CO2) emissions. The majority of existing studies emphasize the importance of renewable energy sources in environmental improvement efforts. Few studies highlight the importance of forestation in environmental improvement efforts, highlighting the non-linear effects of forestation. To fill this gap, this study uses panel data from 181 countries between 1990 and 2022 and evaluates the non-linear impact of economic growth, forest extent, energy efficiency, and urban growth on per capita CO2 emissions using a dynamic panel threshold and dynamic panel quantile threshold methods. Furthermore, we extend the model and conduct robustness tests examining the non-linear threshold effects of renewable and non-renewable energy consumption on per capita CO2 emissions. Our findings provide pieces of evidence that forest extents are an alternative solution to renewable energy use and energy efficiency in environmental improvement efforts.