1. Introduction
Indeed, forest resources are of immense significance as an essential component of natural resources for the maintenance of ecological stability and for the well-being of the planet [
1]. They offer not only timber and non-timber forest products, but also play a crucial role in protecting soil and water resources, maintaining biodiversity, reducing the effects of natural disasters, regulating climate, enabling recreational activities, promoting pollination, and managing pests and diseases [
2,
3,
4,
5]. Hence, the conservation and efficient administration of forest resources is of utmost importance to the balance and well-being of both the environment and human society. Moreover, ensuring efficient forest resource utilization, known as forest resource efficiency, becomes essential to maintain a wide range of ecological, economic, and social advantages in the long run without exhausting these resources [
6,
7]. Further, forest resource efficiency refers to the smart and sustainable utilization of forest resources, striking a balance between extracting goods and services while preserving the forest ecosystem’s health and resilience. Forest resource efficiency seeks to maximize the beneficial outcomes of resource utilization while minimizing any negative consequences through integrating technology, research, and community engagement. Unfortunately, maintaining forest resource efficiency is challenging due to economic expansion and infrastructure development, which leads to deforestation and territory destruction. The conversion of land for housing, industry, and transportation leads to a decrease in forest cover, emphasizing the urgent need to tackle these issues to maintain the efficiency of forest resources.
Over the past three centuries, commencing with the advent of the Industrial Revolution in Britain during the 1760s and the subsequent global population expansion, there has been an imbalance between the rate of natural resource consumption and the rate at which these resources are replenished [
8]. Moreover, since the advent of the Industrial Revolution, the primary feature of production technology has transitioned from manual labor to capital-intensive methods [
9]. This change has resulted in an unprecedented surge in energy use. The growing dependence on capital-intensive technology and the rapid increase in energy consumption have exerted further strain on diverse natural resources, such as forests and the environment. This disparity has contributed to apprehensions over sustainability and the imperative for more effective and accountable resource management strategies to safeguard the welfare of both current and future generations.
According to the United Nations Convention to Combat Desertification (UNCCD), the rate of deforestation experienced a significant increase of 20% in 2021 [
10]. According to the World Bank, deforestation and forest degradation have raised forest sector losses from 42 USD billion to 88 USD billion annually. As a result, there has been a growing concern about the tremendous importance of forest biotopes globally. Recognizing the urgent need for action, Sustainable Development Goals (SDGs) have become pivotal in shaping current environmental policies [
11,
12]. Furthermore, the Sustainable Development Goals (SDGs) offer a comprehensive structure for tackling environmental issues. Moreover, the SDGs provide a comprehensive framework for addressing environmental challenges beyond forests, emphasizing the interconnected goals of clean water, climate action, life below water, and life on land. This integrative approach ensures that environmental measures go beyond individual difficulties, fostering a harmonious and enduring solution to global challenges. The 2015 Paris Agreement and the laws related to Nationally Determined Contributions (NDC), particularly in countries such as China, emphasize the dedication to sustainable forest management as a crucial component of wider initiatives to tackle climate change and biodiversity decline.
After that, China emerged as a proactive participant in strategically managing its forest resources. Since 2015, the Chinese government has incorporated within its NDC the commitment to augment its forest stock volume by around 4.5 billion cubic meters by 2030, compared to the level observed in 2005 [
13]. Additionally, the government aims to strengthen systems and capabilities to mitigate climate change risks in forest management. Furthermore, the Chinese government has implemented comprehensive domestic forest protection programs. Among the most extensive initiatives, the Natural Forest Conservation Program encompasses the implementation of large-scale afforestation efforts, the enlargement of forest reserves, and the prohibition of logging activities within primary forest areas [
14]. Between the years 1998 and 2018, the central government allocated a total expenditure of over 475 billion RMB, which is equivalent to approximately
$72 billion, to the program.
China possesses an extensive landmass that is marked by broad forest coverage, encompassing a diverse range of forestry indicators and a wealth of substantial data. China is home to approximately 211 million hectares (Mha) of tree cover, making it the fifth country with the most trees in the world [
15]. However, the forest coverage in China has grown significantly, from 8.6% in 1949 to 23.04% by the end of 2020. This notable expansion may be attributed to reforestation initiatives implemented during the 1950s and 1970s. These programs were specifically designed to address the adverse effects of soil erosion by planting around 28 million hectares and 27 million hectares of trees, respectively. Yet, China’s forest resources are currently facing unprecedented challenges [
16]. According to Global Forest Watch, the total area of primary forest in China has declined by 4.4% from 2002 to 2020. Further, according to data published by the State Forestry Administration, China’s forest coverage rate is notably lower than the global average of 31 percent, and the per-capita forest area in China is only a fourth of the global average (Liu et al., 2023) [
17].
During the APEC Economic Leaders’ Meeting in 2009, China committed to a double increase in both forest area and storage, pledging this to the international community. For that reason, China has formulated several national forestry programs with the aim of facilitating the advancement of ecological forestry and forestry practices that cater to the well-being of the populace.
Figure 1 shows the forest area of the sample province (2002–2020). Inner Mongolia, Heilongjiang, Yunan, and Sichuan have the largest forest area. Shanghai, Tianjin, Beijing, and Ningxia have the lowest forest resources (area-wise).
Figure 2 shows the growth of forests in the province over the year. Despite the challenges, China’s forest resources are increasing in some provinces. However, there might not be enough significant efforts to preserve and maintain these resources.
Therefore, the study aims to find China’s forest resource efficiency and the most influential factors that can increase China’s forest utilization efficiency. Nonetheless, a multitude of factors drive the efficient utilization of forest resources.
However, technological developments are regarded as a key driver of increased efficiency in resource allocation [
18]. High technology has the potential to enhance forest resource efficiency significantly, as it can enable advanced tools like remote sensing, geographic information systems (GIS), and satellite imagery to provide real-time data on forest health, monitoring, and management [
19,
20]. According to Gavilanes Montoya (2023) [
21], technology enables forest managers to make well-informed decisions on the allocation of resources, detection of wildfires, and control of pests, thus enhancing the overall health of the forest. It highlights the importance of technology education in enhancing forest resource efficiency. The inclusion of technology education is vital to adequately educate the workforce with the necessary abilities to utilize modern technologies proficiently. Training programs and educational activities have the potential to enhance the skills of foresters and conservationists in utilizing advanced technological instruments, hence facilitating the promotion of sustainable forest management, conservation efforts, and the optimization of resources [
22,
23]. However, it is essential to have accurate and up-to-date data on the growth and productivity of forests to make informed decisions about their management and conservation.
Additionally, digitalization is the most powerful instrument because it extends the range and timescale of remote sensing beyond what is possible with other observation techniques. Moreover, the digital platform facilitates a wide range of advanced functionalities, including but not limited to big data analysis and storage, online computing, shared user platforms, timber tracking, certification, monitoring, artificial intelligence, machine learning, and digital twin replication [
24,
25]. The features are of utmost importance in the improvement of forest resource management, the facilitation of data-driven decision-making, and the promotion of sustainable practices.
However, under fiscal decentralization, the government can facilitate the adoption of advanced tools and systems for forest management. Fiscal decentralization can improve the management of forest resources by giving local authorities more control and incentives to manage their forests sustainably [
26]. Local governments can allocate their resources to invest in technologies such as remote sensing, GIS, and data analytics, which aid in real-time monitoring, inventory management, and conservation efforts [
27]. Local governments invest in technology, education, and infrastructure that can enhance forest resource efficiency. By linking technology with forest resource efficiency, fiscal decentralization can enable local communities to harness the power of data-driven approaches, promoting sustainable forest management practices and ensuring the long-term vitality of forest resources [
28,
29].
To this end, the primary objective of this empirical study is to evaluate the influential role of technology, fiscal decentralization, and the digital economy on China’s forest resource efficiency. Precisely, the contribution of this study to the growing body of knowledge is as follows. Firstly, the study started to estimate the forest resource efficiency of China province using SBM-Data Envelopment Analysis (2002–2020). The subsequent array of contributions of the study is as follows: First, the study incorporates the two features of technology, such as high technology expenditure and forest technology-related education, to provide a foundation for evidence-based policy decisions to foster sustainable development of forest resources in China’s Provinces. Second, the study used the local government expenditure on forests to approximate the fiscal decentralization impact on forest resource efficiency. Third, the study used the effects of digital economy development on forest resource efficiency. Additionally, we expand the digital economy’s role in moderating the influence of economic development, urbanization expansion effect, fiscal decentralization, and technology towards forest resources efficiency. Fourth, the study controls the investment spillover effect to shape forest resource efficiency, making this study more comprehensive on the subject.
6. Conclusions
This research offers an original perspective on the role of technology, fiscal decentralization, and digital economy in improving China’s forest resource efficiency. Therefore, this study selected the thirty-one (31) provinces of China for (2002–2020). This study used a systematic road map for analysis. First, we focus on the key aspects related to forest resource inputs and outputs that are most pertinent to our analysis. Subsequently, we employ SBM-Data Envelopment Analysis to assess the efficiency of China’s forest resources. In the next stage, we follow a proper econometric series: cross-sectional dependence, slop heterogeneity, order of integration, and co-integration, including checks for correlation. Following this, we proceed to conduct an in-depth examination of long-term analysis by Driscoll and Kraay estimators. This study uses two sorts of technology: high-technology expenditure and technology (forest) education. Further, fiscal decentralization (local government expenditure) on forest resources makes the study more innovative and richer in analysis. This research also emphasizes the moderating role of the digital economy in forest resource management and efficiency enhancement.
The study’s significant findings disclose that both dimensions of technology increase the Chinese provinces’ forest resource efficiency through technological expenditure and forest technology education. Further, fiscal decentralization is positive for improving forest resource efficiency. However, urbanization and economic development reduce the efficiency of forests. The digital economy can effectively help improve forest resource efficiency. Furthermore, the presence of moderating effects reveals that the influence of the digital economy on the efficiency of forest resources is greatly enhanced when it is coupled with a strong Gross Domestic Product, fiscal decentralization, modern technology, and urbanization. This emphasizes the significance of considering the wider economic and technological framework to advance more efficient and enduring forest management practices. Consequently, the study’s findings have substantial implications on the topic.
Technology and Forest Resource Efficiency: China has the potential to achieve its forest resource objectives by implementing increased forest management practices, supported by the utilization of novel technology and the promotion of advanced technical education. To improve resource allocation and ecological sustainability, policymakers should promote investments in high-tech solutions and technical education, such as remote sensing, data analytics, and precision forestry. Improved financial and ecological outcomes are possible because of technological developments in forest management.
Fiscal decentralization and Forest Resource Efficiency: The governmental allocation of resources towards the management of forest resources is important to improve efficiency. It is urged that governments contemplate augmenting their expenditures on forest-related endeavors, encompassing conservation initiatives, reforestation actions, and the oversight and implementation of regulatory measures. Targeted public investments in the forestry sector have the potential to yield improved outcomes in resource management and conservation, thereby generating positive impacts on both the economy and the environment.
Digital Economy and Forest Resource Efficiency: A digital economy’s impact on forest resource efficiency implies that a robust digitalized economy has the potential to enhance the effectiveness of forest management and the distribution of resources. Policymakers must deliberate upon the implementation of policies that facilitate the expansion of digitalization, particularly in metropolitan regions, with the aim of cultivating inventive strategies for the management of forest resources. The utilization of digital technologies and data-driven decision-making has the potential to improve the efficiency of resource allocation significantly.
Urbanization and Forest Resource Efficiency: China has a vast population as well as a growing economy. Since the demand for land and resources increases as populations grow, urbanization reduces the effectiveness of forest management. Sustainability concepts should be incorporated into urban planning to balance urban expansion and forest protection, making economic growth consistent with ecological conservation.
Limitations and Future Research
Although this research offers significant insights, it is crucial to recognize its limitations. The study’s conclusions are derived from the data that is currently accessible and the approaches that have been used, both of which may have inherent limitations. Future research should further investigate advanced technological solutions and pedagogical initiatives that have the highest efficacy in improving China’s forest resource efficiency. Furthermore, examining the intricate relationship between the digital economy and other influential factors could provide a detailed comprehension of its moderating impacts.