From Ashes to Action: Economic Growth, Ecological Footprint, and Forest Fire Resilience in Advanced and Emerging Economies

Abstract

Forest fires have escalated alarmingly, now consuming more than double the tree cover compared to two decades ago, signaling a growing and urgent environmental crisis. This study addresses the ever increasing global concern of forest fires, focusing on sustainable economic recovery while minimizing the ecological footprint amid mounting environmental challenges. The theoretical framework uniquely integrates the environmental Kuznets curve and tragedy of the commons, providing novel insights into the economic environment over the last two decades. This study adopts kernel density estimation approach and quantile regression method to evaluate the relationship between the variables of interest. The findings reveal a positive association between forest fires and economic growth, biocapacity, and natural resource depletion. In contrast, ecological footprint, urbanization, biodiversity loss, and tourism development are found to be negatively associated. These relationships diminish over time, indicating a potential rise in forest fire incidences without sustainable interventions. The study advocates for a transition to renewable energy, stringent environmental policies, and further research to mitigate ecological footprint and forest fire risks to promote sustainable development.