Socio-Economic Aspects of Drought Impact on Forest Industry in China
2025
Lei Wang | Xinyi Wang | Wei Wang
Extreme drought events under the background of global warming pose a significant threat to China&rsquo:s forest industry system. This study aims to analyze the impact of drought on China&rsquo:s forest industry from the perspective of economics, and, through the mechanism test, to further study the communication path of drought to the forest industry. The study finds: (1) drought has been increasing in China in the last 50 years. (2) Drought has a significant restraining effect on the Chinese forest industry. Moreover, inland areas are more vulnerable to drought than coastal areas. (3) Drought will lead to an increase in the occurrence area of forest pests and diseases, forming a compound eco-economic loss effect, thus inhibiting the development of the forest industry. (4) Drought can drive an increase in irrigation facilities. Efficient irrigation may mitigate biological damages caused by drought, so as to resist part of the economic losses. (5) Drought may cause labor to migrate from the forest sector to non-forest sectors, leading to lower production in the forest industry. Labor transfer effects caused by drought are more obvious in the areas where the income gap is relatively big between rural and urban regions, e.g., in inland areas.
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