Impact of Economic Activities on Forest Load Capacity in Nordic Countries

Aim of study: The study aims to test the Environmental Kuznets Curve (EKC) and Load Capacity Curve (LCC) hypotheses by analyzing how economic and environmental factors influence forest load carrying capacity (FLCC) in Nordic countries. Area of study: This research focuses on the Nordic countries-Finland, Denmark, Norway, and Sweden-regions characterized by high forest coverage, advanced economies, and strong environmental policies. Material and method: Using annual data from four Nordic countries for the period 2010–2021, the study employs the Panel ARDL method to analyze dynamic relationships between variables, and based on the Hausman test indicating homogeneity of long-run coefficients, the PMG estimator is applied. Main results: The empirical results support the EKC and LCC hypotheses. Economic growth initially exerts a negative effect on forest load capacity but enhances environmental sustainability after a certain income threshold. Research highlights: The study reveals that in Scandinavian countries, economic growth initially harms but eventually supports forest sustainability, while carbon intensity, agricultural expansion, and urbanization exert lasting environmental pressures on FLCC, highlighting the need for integrated and country-specific sustainability policies.