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Forest protection, EKC and LCC dynamics in the world's largest forest nations

Author

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  • Pata, Ugur Korkut
  • Karlilar Pata, Selin
  • Nathaniel, Solomon Prince

Abstract

This study examines the validity of the Environmental Kuznets Curve (EKC) and Load Capacity Curve (LCC) hypotheses for the world's five largest forest nations (Brazil, Canada, China, Russia, and the United States) from 1995 to 2020, aiming to understand how economic growth, forest natural capital protection, renewable energy consumption (REC), and urbanization influence forest sustainability. Using annual panel data, the analysis employs the novel Bias-Corrected Method of Moments (BCMM) estimator. The empirical results reveal an inverted U-shaped relationship between income and forest footprint, confirming the forest-based EKC hypothesis, while a U-shaped relationship between income and forest load capacity factor supports the LCC hypothesis, indicating that forest resilience improves only after reaching higher income levels. Forest natural capital protection plays a central role by reducing ecological pressure and enhancing forest load capacity, while urbanization contributes positively through efficiency gains and structural transformation. In contrast, renewable energy consumption is associated with increased forest pressure and reduced load capacity, reflecting land-use and infrastructure demands. These outcomes highlight the importance of strengthening forest protection policies, integrating ecological considerations into renewable energy planning, and promoting development strategies that balance economic growth with long-term forest resilience.

Suggested Citation

  • Pata, Ugur Korkut & Karlilar Pata, Selin & Nathaniel, Solomon Prince, 2026. "Forest protection, EKC and LCC dynamics in the world's largest forest nations," Forest Policy and Economics, Elsevier, vol. 188(C).
  • Handle: RePEc:eee:forpol:v:188:y:2026:i:c:s1389934126001346
    DOI: 10.1016/j.forpol.2026.103829
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