Abstract
This study aims to reveal the connection between corruption and shadow economy, on one hand, and deforestation, on the other. The research considers 131 countries from all over the world, in the timeframe between the years 2012 and 2020, and it reveals that corruption and shadow economy positively influence deforestation. Determinants like democratic governance quality, press freedom, wood export share, and culture are also key factors in implementing the right, efficient countermeasures aimed at reducing the levels of illegal deforestation and sustainably managing the forestland. The importance of this study is to provide a solid quantitative basis to decision-makers that come across this problem of illegal logging through a better, fact-based understanding of the phenomenon.
Highlights
There is a positive correlation between Corruption Perception Index (CPI), on the one hand, and Net Forest Conversion (NFC) and Net Forest Conversion Rate (NFCR), on the other
Because a country is more corrupt if it has a lower CPI score, and because in the countries where the cutting of trees exceeds the planting, NFC and NFCR have negative values, it means that countries that shrink their forestland are more corrupt
SE and FL move in tandem, while there’s an indirect relationship between SE, on the one hand, and NFC and NFCR on the other. This means that countries with a higher percentage of Shadow Economy are the ones that shrink their total forestland, by cutting more trees than planting
Summary
Corruption, The need for understanding the factors that determine this serious phenomenon of illegal logging is stringent, as climate change has become very real. The carbon dioxide level has increased in a straight line, straight to unsustainability, as a report by NASA (2021) reveals. The most recent official report about the global emissions of greenhouse gas by sector and sub-sectors was published in 2020 using data from 2016. It may not seem much, deforestation accounts for. 2.2% of the total global greenhouse gas emissions. If we rank the most powerful causes, deforestation would be at 13th place of all the 27 sub-sectors. Wood is important because it is the only renewable building material available at the moment
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