GOVERNMENT REGULATION OF THE FORESTRY SECTOR OF THE ECONOMY

The article explores the theoretical foundations and modern approaches to government regulation of the forestry sector. The authors identify the specific features of the industry that necessitate state intervention, such as the long cycle of resource reproduction, the presence of external environmental effects, and the high public importance of forests. The main regulatory instruments are analyzed, including legal, economic, administrative, and institutional tools. Particular attention is given to the concepts of sustainable forest management, the ecosystem approach, and digitalization. Key regulatory challenges are highlighted, including fragmented legislation, limited funding, weak monitoring systems, and the dominance of a rawmaterial- oriented model. The article concludes that systemic transformation of institutional and managerial mechanisms is essential to ensure the sustainable development of the forestry sector.