What Is the Relationship Between Forest Footprint and Export of Forest Products? Evidence from Method of Moments Quantile Regression

Abstract

This study investigates the long-run relationship between forest footprint, which shows the amount of forest area needed for pulp, industrial wood, firewood and timber, and forest products as an environmental indicator. Forest footprint, forest product exports, forest product production, forest areas, biomass consumption, and urbanization variables are used in the analyses with annual data for the period 2000-2017 for selected European Union (EU) countries. As a result of the cointegration analyses, there is a long-run relationship between the variables. According to the results of coefficient estimation, it is concluded that forest product exports and urbanization have a decreasing effect on forest ecological footprint, while forest area, forest product production, and biomass consumption have an increasing effect. According to the Method of Moments Quantile Regression (MMQR) estimation results, it is concluded that forest product exports have a decreasing effect on forest footprint in all quantiles in the analysis period. The production of forest products is determined as the variable with the highest negative impact on the forest's ecological footprint. The effect of urbanization is calculated as positive, but it is the variable with the lowest impact together with forest area. Biomass consumption is found to significantly reduce the forest footprint. In view of the aforementioned findings, it is recommended that efforts be made to promote high-value added, sustainable, and environmentally friendly production processes in forest products exports. This is considered to be a key strategy to reducing the ecological footprint of forests.