The Green New Developmentalism and Forest Transition: a Proposal for Integration Between Structural Change, Economic Development and Environmental Sustainability
Forest Transition; Ecological Structural Change; Forest Restoration and Conservation; Climate Change; Green New Developmentalism
The relationship between economic scale and environmental impacts is neither linear nor stable across different economies and over time, as it depends on the technologies adopted within a given production structure. Sustainable development can be achieved if this relationship allows for economic growth at diminishing rates of natural resource consumption and pollutant emissions, alongside the long-term restoration of natural capital stocks, such as forests. In this context, the process of land-use change leading to sustained forest recovery after a period of decline in forest cover during early economic development stages is known as forest transition. To facilitate this, it is imperative to expand sectors that adopt renewable resource-based technologies and value forestlands, in contrast to those reliant on non-renewable resources and carbon-intensive methods. This transition is only feasible through Ecological Structural Change, which does not occur spontaneously due to various market failures, risks, and uncertainties associated with forest investments. Therefore, a comprehensive set of public policies combining fiscal, industrial, trade, and regulatory measures within an ecodevelopmental strategy is required. Specifically, in the forest sector, public policies should promote investments in sustainable forest management and restoration for multiple purposes. This paper theoretically discusses a green new developmentalism strategy for forest transition. The evidence underscores the importance of policy coordination to balance profit rates between land uses and prevent rebound effects. Additionally, it highlights the need for proper institutional arrangements to ensure effective market and public sector interaction, transparency, accountability, and the prioritization of the eco-developmental strategy in the governmental agenda