SUSTAINABLE FOREST POLICY AND CARBON SEQUESTRATION IN PAKISTAN: AN INTEGRATED ECONOMIC AND ENVIRONMENTAL ASSESSMENT

Abstract

This study examines the economic value of Forest Carbon Sequestration (FCS) in Pakistan, focusing on public awareness, the impact of government policy, the economic valuation of ecosystem services, and the relationship between climate change and environmental awareness. Using Structural Equation Modelling (SEM) to analyze survey responses from 180 forestry, environmental science, and policy experts, the study examines the mediating role of perceived project effectiveness and the moderating role of political affiliation. The findings indicate that public awareness, government policy , and the economic valuation of ecosystem services play significant roles in shaping the economic impacts of FCS initiatives. Among all variables, climate and environmental change awareness was the most significant. Additionally, perceived effectiveness has a significant moderating effect on the relationship between public awareness and the economic returns on FCS, while political affiliation does not have a significant moderating effect. These results highlight the need for increased public participation, policy integration, and institutionalization of appreciating ecosystem services to capture the economic value of FCS better. The research offers valuable insights for policymakers, practitioners, and researchers, promoting integrated, climate-resilient forestry approaches that are climate-informed, responsive to national development agendas, and aligned with international commitments on sustainable development