Forest Products Trade and Sustainable Development in China and the USA: Do Bioenergy and Economic Policy Uncertainty Matter?

Abstract

The United Nations Agenda 2030 for Sustainable Development has induced the empirics to find the factors that can contribute to sustainable development. However, limited empirical evidence has estimated the impact of forest trade, bioenergy, and economic policy uncertainty on sustainable development. This study fills the gap by analyzing the impact of forest trade, bioenergy, and economic policy uncertainty on sustainable development in China and the USA using the ARDL and QARDL approaches. The findings of the ARDL model suggest that forest trade helps boost both short- and long-run sustainable development in China and the USA, while bioenergy fosters sustainable development in the short and long run only in China and in the USA, bioenergy improves sustainable development only in the long run. In contrast, economic policy uncertainty hurts sustainable development in the short and long run in China, while in the USA, only the long-run negative association between the two variables is observed. Thus, policymakers in China and the USA need to focus on enhancing trade in forest products, fostering bioenergy generation, and reducing uncertainties in economic policy to promote sustainable development.