The Impact of Technological Dynamics and Fiscal Decentralization on Forest Resource Efficiency in China: The Mediating Role of Digital Economy

This study explores the multi-dimensional relationships between technology, fiscal decentralization, and forest resource efficiency, and the pivotal role played by the digital economy as a mediator in 2002–2020. First, this study evaluates the Chinese provinces’ forest resource efficiency using multi-dimensional inputs and outputs of forest sectors. Further, we use two sorts of technology: high-technology expenditure and forest technology education. Fiscal decentralization in terms of local government expenditure on forest resources makes the study innovative and richer in analysis. A SBM-DEA analysis showed that the Anhui, Beijing, Jiangsu, Shanghai, and Zhejiang provinces have the highest efficiency scores, implying very efficient forest resource management. Subsequently, the robust econometric estimator Driscoll and Kraay is applied. The study’s findings disclose that both dimensions of technology increase the Chinese provinces’ forest resource efficiency through technological expenditure and forest technology education. Fiscal decentralization towards forest resource management expenditure increases the efficiency of forests. Urbanization and economic development reduce the efficiency of forests. The digital economy can effectively help to improve the efficiency of forest resources. The presence of moderating effects reveals that the influence of the digital economy on forest resource efficiency is positive when it is coupled with economic development, fiscal decentralization, technology, and urbanization. © 2023 by the authors.