Institutional Strength, Agricultural Productivity, And Sustainable Forest Management In ASEAN: An Analysis Of Mitigating Factors In Deforestation

Abstract

Deforestation in ASEAN nations constitutes a substantial environmental issue, propelled by economic demands, agricultural growth, and inadequate governance structures. This research examines the influence of agricultural production and institutional quality on deforestation rates in seven ASEAN countries from 1991 to 2020. The analysis used Panel Corrected Standard Error (PCSE) regression models to examine the influence of GDP per capita, agricultural productivity, population increase, and governance quality on forest conservation. The findings validate the Environmental Kuznets Curve (EKC) concept, demonstrating that economic progress first intensifies deforestation but ultimately fosters conservation as income and governance enhance. In accordance with the Agricultural Intensification Theory, enhanced agricultural productivity correlated with reduced deforestation rates, while robust governance structures mitigated illegal deforestation operations. The study indicates that successful forest conservation in ASEAN necessitates policies that improve agricultural efficiency, reinforce governance, and encourage sustainable land use practices. Recommendations underscore the necessity of governance reforms, investment in sustainable agricultural technologies, and economic alternatives to agricultural expansion to guarantee long-term environmental sustainability in the region.