Regional economic development and innovation play a crucial role in sustaining sustainable economic growth and promoting social inclusion. Our study examines the long-run and short-run relationship between forest area growth (FAG) as the dependent variable and its determinants: Gross Domestic Product (GDP), energy consumption (EUSE), and urbanization (URB). The data used covers the period 1990–2021 and is extracted from the World Bank database, with the methodology applied being AutoRegressive Distributed Lag (ARDL). The results of the long-run estimations indicate a positive and significant influence of GDP on FAG, while urbanization and energy consumption have negative and significant effects. Additionally, using Python programming language, we constructed the Environmental Kuznets Curve for deforestation in Romania, which is highlighted by the inverted U-shaped relationship between GDP and FAG. Our findings suggest that urbanization can contribute to the expansion of FAG through urban planning practices that incorporate green spaces and forests in urban areas. Moreover, energy consumption can have a negative effect on FAG, being associated with industrial and energy production activities that generate pollution and deforestation.