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Based on country-specific panel data from 1990–2014 for 86 different countries, we quantify the effects of forests and agricultural land in CO2 emissions, using the framework of the Environmental Kuznets Curve (EKC). The results from the dynamic panel data method reveal that forests are an important determinant in reducing CO2 emissions globally, but the effects vary by region. All else constant, we estimate a 0.11% decline in CO2 emissions per 1% increase in the forest area globally. However, the agricultural sector is found to be a true CO2 emitter. Our study provides additional empirical evidence for the roles of forests in regulating atmospheric CO2, further reinforcing the importance of forests in global climate change policies.

Incorporating Forests, Agriculture, and Energy Consumption in the Framework of the Environmental Kuznets Curve: A Dynamic Panel Data Approach