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Sustainable Forest Use and India's Economic Growth: A Structural Decomposition Analysis of Direct Forest Intensity
Abstract
This paper assesses the prospect of sustainable forest management (SFM) for an emerging economy like India, where forest coverage has gone up over the last three decades in spite of population growth, rapid urbanization and fast economic growth. To assess the possibility of sustainable future growth in a globally congenial environment, the extent of ecological stress on Indian economy has been assessed by using Input-Output transaction tables and pattern of expenditure by the Government and the Private sector along with Import and Export of forestry and related products over 1993-94 to 2007-08. The change in direct forest intensity (DFI) in gross domestic product has been calculated and decomposed into effects due to material intensity, structural change and economic growth. The results reveal increasing dominance of economic growth over other effects indicating necessity of designing intervention to decouple potential future economic growth from forest resources to ensure long run sustainability.
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