How policy instruments affect forest cover: Evidence from China

The implementation of effective forest governance is of paramount importance for the expansion of forest areas. In this study, we employ a panel dataset comprising 31 provinces, municipalities, and autonomous regions in China from 1999 to 2021, utilising text-mining techniques and a fixed-effects model, to examine the relationship between forest cover and policy instruments. Furthermore, we conduct robustness tests to ensure the validity of the empirical results. The results indicate that: (1) the implementation of comprehensive forest policy instruments in China has significantly contributed to the expansion of forest cover and ensured an increase in forest area; (2) with regard to the impact of policy instruments, economic and political instruments have exerted the most pronounced influence on forest cover, followed by coercion and didactic promotion; (3) state-owned forest areas are more responsive to policy instruments than collective forest areas, and the effects of policy instruments differ significantly between the two. This study underscores the crucial role of the government in promoting forest resource growth in China, reiterating the significance of multidimensional governance in increasing forest cover. Furthermore, it makes a valuable contribution to the quantitative analysis of forest policy.