Skip Navigation Links
Journal of Environmental Accounting and Management
António Mendes Lopes (editor), Jiazhong Zhang(editor)
António Mendes Lopes (editor)

University of Porto, Portugal

Email: aml@fe.up.pt

Jiazhong Zhang (editor)

School of Energy and Power Engineering, Xi'an Jiaotong University, Xi'an, Shaanxi Province 710049, China

Fax: +86 29 82668723 Email: jzzhang@mail.xjtu.edu.cn


North-South Differences in the Impact of Forest Protection on Export Stability

Journal of Environmental Accounting and Management 14(4) (2026) 771--787 | DOI:10.5890/JEAM.2026.12.016

Hua Zhou$^{1}$, Jiacheng Wang$^{1}$, Jiachen Fan$^{2}$, Shiyu Hao$^{3}$

$^{1}$ School of Economics and Management, Tongji University Shanghai, China

$^{2}$ School of Economics and Management, Tsinghua University, Beijing, China

$^{3}$ School of International Trade and Economics, Anhui University of Finance and Economics, Bengbu, China

Download Full Text PDF

 

Abstract

Forest conservation can generate far-reaching economic and trade effects, with significant heterogeneity across countries. This paper empirically examines the North-South disparities in the trade-related impacts of forest protection, focusing specifically on export stability. The findings reveal an inverted U-shaped relationship between forest cover in exporting countries and the stability of product exports from developed economies, while no significant effect is observed for developing countries. Mechanism analysis suggests that this impact in developed countries operates primarily through changes in domestic labor market characteristics and international labor mobility. Compared to high-tech products, the export stability of low-tech products is more susceptible to changes in forest coverage. Extended analysis indicates that promoting the adoption of industrial robots and the increases in health-related expenditures can help mitigate the potential adverse effects of increased forest cover. These findings contribute to a more comprehensive understanding and management of the potential trade-related effects of forest protection under varying national contexts.

Acknowledgments

This work was supported by Beijing Natural Science Foundation [9254029].

References

  1. [1]  Handley, K. and Limão, N. (2017), Policy uncertainty, trade, and welfare: theory and evidence for China and the United States, American Economic Review, 107(9), 2731-2783.
  2. [2]  Besede\v{s}, T. (2013), The role of NAFTA and returns to scale in export duration, CESifo Economic Studies, 59(2), 306-336.
  3. [3]  Massell, B.F. (1970), Export instability and economic structure, The American Economic Review, 60(4), 618-630.
  4. [4]  Zhang, C., Qiu, P., and Zhang, L. (2024), The impact of digital transformation on enterprises' export stability: evidence from listed companies in China, International Review of Financial Analysis, 96, 103582.
  5. [5]  Adams, C., Rodrigues, S.T., and Calmon, M. (2016), Impacts of large-scale forest restoration on socioeconomic status and local livelihoods: what we know and do not know, Biotropica, 48(6), 731-744.
  6. [6]  Olmos, V.M. (2022), Forestry and the forest products sector: production, income and employment, and international trade, Forest Policy and Economics, 135, 102648.
  7. [7]  Schwerhoff, G. and Wehkamp, J. (2018), Export tariffs combined with public investments as a forest conservation policy instrument, Forest Policy and Economics, 95, 69-84.
  8. [8]  Karjalainen, E., Sarjala, T., and Raitio, H. (2010), Promoting human health through forests: overview and major challenges, Environmental Health and Preventive Medicine, 15, 1-8.
  9. [9]  Pintor, M.P., Fumagalli, E., and Suhrcke, M. (2024), The impact of health on labor market outcomes: a rapid systematic review, Health Policy, 143, 105057.
  10. [10]  Hall, C.M., Scott, D., and Gössling, S. (2011), Forests, climate change and tourism, Journal of Heritage Tourism, 6(4), 353-363.
  11. [11]  Sinclair, M.T. and Tsegaye, A. (1990), International tourism and export instability, The Journal of Development Studies, 26(3), 487-504.
  12. [12]  Liyew, A.M., Clements, A.C.A., and Akalu, T.Y. (2024), Ecological-level factors associated with tuberculosis incidence and mortality: a systematic review and meta-analysis, PLOS Global Public Health, 4(10), e0003425.
  13. [13]  Wong, I.K.A. and Zhao, W.M. (2016), Exploring the effect of geographic convenience on repeat visitation and tourist spending: the moderating role of novelty seeking, Current Issues in Tourism, 19(8), 824-844.
  14. [14]  Appanah, S. and Ratnam, L. (1992), The importance of forest biodiversity to developing countries in Asia, Journal of Tropical Forest Science, 5, 201-215.
  15. [15]  Bradshaw, C.J.A., Sodhi, N.S., and Peh, K.S.H. (2007), Global evidence that deforestation amplifies flood risk and severity in the developing world, Global Change Biology, 13(11), 2379-2395.
  16. [16]  Mackey, B., Moomaw, W., and Lindenmayer, D. (2022), Net carbon accounting and reporting are a barrier to understanding the mitigation value of forest protection in developed countries, Environmental Research Letters, 17(5), 054028.
  17. [17]  Shen, Y., Liao, X., and Yin, R. (2006), Measuring the socioeconomic impacts of China's Natural Forest Protection program, Environment and Development Economics, 11(6), 769-788.
  18. [18]  Daruich, D., Easterly, W., and Reshef, A. (2019), The surprising instability of export specializations, Journal of Development Economics, 137, 36-65.
  19. [19]  Miranda, J.J., Corral, L., and Blackman, A. (2016), Effects of protected areas on forest cover change and local communities: evidence from the Peruvian Amazon, World Development, 78, 288-307.
  20. [20]  Majune, S.K., Türkcan, K., and Moyi, E. (2024), How the African Continental Free Trade Area impacts firms' export survival: some lessons from Kenya, The Journal of International Trade & Economic Development, 33(4), 574-597.
  21. [21]  Zhou, H., Fan, J., and Gan, T. (2024), The impact of industrial robots on export stability, The World Economy, 47(9), 3780-3808.
  22. [22]  Chen, S., Mao, H., and Duan, K. (2024), Industrial robots and export product quality: evidence from China, Applied Economics, 1-15.
  23. [23]  Dai, H., Yang, R., and Cao, R. (2024), Does the application of industrial robots promote export green transformation? Evidence from Chinese manufacturing enterprises, International Review of Economics & Finance, 96, 103538.
  24. [24]  Novignon, J., Olakojo, S.A., and Nonvignon, J. (2012), The effects of public and private health care expenditure on health status in sub-Saharan Africa: new evidence from panel data analysis, Health Economics Review, 2, 1-8.
  25. [25]  Grossman, M. (1972), On the concept of health capital and the demand for health, Journal of Political Economy, 80(2), 223-255.
  26. [26]  Nowak, D.J., Hirabayashi, S., and Bodine, A. (2014), Tree and forest effects on air quality and human health in the United States, Environmental Pollution, 193, 119-129.
  27. [27]  Malesky, E.J. and Mosley, L. (2021), Labor upgrading and export market opportunities: evidence from Vietnam, Economics & Politics, 33(3), 483-513.
  28. [28]  Lee, E.S. (1966), A theory of migration, Demography, 3(1), 47-57.
  29. [29]  Li, L., Ding, Y.N., and Fan, J.C. (2025), Industrial robots and export growth: a cross-country analysis, Applied Economics Letters, 32(9), 1278-1282.
  30. [30]  Zhou, H. and Fan, J. (2023), Export structure, import demand elasticity and export stability, The World Economy, 46(3), 758-790.
  31. [31]  Crespo, C.J., Danylo, O., and Fritz, S. (2017), Economic development and forest cover: evidence from satellite data, Scientific Reports, 7(1), 40678.
  32. [32]  Hansen, M.C., Potapov, P.V., and Moore, R. (2013), High-resolution global maps of 21st-century forest cover change, Science, 342(6160), 850-853.
  33. [33]  Ewers, R.M. (2006), Interaction effects between economic development and forest cover determine deforestation rates, Global Environmental Change, 16(2), 161-169.
  34. [34]  Colombo, S.J., Chen, J., and Ter-Mikaelian, M.T. (2012), Forest protection and forest harvest as strategies for ecological sustainability and climate change mitigation, Forest Ecology and Management, 281, 140-151.
  35. [35]  Lind, J.T. and Mehlum, H. (2010), With or without U? The appropriate test for a U-shaped relationship, Oxford Bulletin of Economics and Statistics, 72(1), 109-118.
  36. [36]  Reed, W.R. (2015), On the practice of lagging variables to avoid simultaneity, Oxford Bulletin of Economics and Statistics, 77(6), 897-905.
  37. [37]  Andersen, T.B. and Dalgaard, C.J. (2013), Power outages and economic growth in Africa, Energy Economics, 38, 19-23.
  38. [38]  Chen, C., Sheng, Y., and Findlay, C. (2013), Export spillovers of FDI on China's domestic firms, Review of International Economics, 21(5), 841-856.
  39. [39]  Kleibergen, F. and Paap, R. (2006), Generalized reduced rank tests using the singular value decomposition, Journal of Econometrics, 133(1), 97-126.
  40. [40]  Jay, M. and Schraml, U. (2009), Understanding the role of urban forests for migrants-uses, perception and integrative potential, Urban Forestry & Urban Greening, 8(4), 283-294.
  41. [41]  Self, S. and Grabowski, R. (2003), How effective is public health expenditure in improving overall health? A cross-country analysis, Applied Economics, 35(7), 835-845.