Unveiling the Influence of Climate and Technology on Forest Efficiency: Evidence from Chinese Provinces

Abstract

The objective of this study is to examine the impact of climate and technology on forest efficiency (FE) in China’s provinces from 2002 to 2020. First, the study used SBM-data envelopment analysis (SBM-DEA) to estimate Chinese provinces’ FE using multidimensional forest inputs and outputs. The climate influence is assessed using temperature, precipitation, sunlight hours, and carbon dioxide levels in the second phase. A climate index was created using principal component analysis (PCA) for a complete estimation. In addition to prior research, we analyze the technology impact through two technological indicators: (i) research and development, and (ii) investment in forests. Furthermore, we explore the non-linear influence of economic development on both FE and climate quality. The regression study by CupFM and CupBC found that temperature and precipitation increase FE, whereas sunlight hours and carbon emissions decrease it. The positive association observed between Climate Index1, and the negative relationship noted for Climate Index2, suggests that forests positively influence climate conditions, signifying that an improvement in FE leads to an improvement in climate quality. Technology boosts forest productivity and climatic quality. The environmental Kuznets curve shows an inverted U-shape relationship between economic development and FE. Similarly, climate and economic development have an inverted U-shaped EKC relationship. Urbanization reduces FE due to human growth and activity. Our findings are important for forest management, climate change, and sustainable development policymakers and scholars.