Forest investment in China: an efficient way to climate and economic security?
摘要
Utilising the TVP-VAR-SV approach, this article aims to reveal the dynamically evolving relationships among forest investment (FI), climate uncertainty (CU) and economic policy uncertainty (EPU). The results indicate that FI benefits CU in the early stages, whereas this positive trend reverses over the medium and long terms. This observation suggests that the positive effects of forestry investment on climate security are delayed. FI consistently negatively influences EPU, highlighting the role of forestry investment in enhancing economic security. Notably, the impact of FI on EPU is more substantial than its impact on CU, primarily due to the more direct and correlated nature of investment in the economy. Conversely, CU has mixed effects on FI, showing climate insecurity can either boost or hinder forestry investment. EPU, however, hinders FI, implying economic insecurity blocks forestry investment. These findings suggest valuable suggestions to ensure China’s climate and economic security through forestry investments.