Evaluating the Socioeconomic Factors on Deforestation in Northern Pakistan: A Study on Existing Economic Incentive Tools for Reducing Deforestation

Deforestation is a common threat to the environment that has a substantial impact on the forest’s distribution across territorial boundaries. It is simply defined as the loss of forest cover, which most commonly occurs as a result of deforestation for various reasons. Pakistan is among those countries which have a very high deforestation rate. This paper analyzes the various socioeconomic factors which cause deforestation in northern Pakistan and the existing economic incentive tools for reducing deforestation. Data collected from 602 respondents were analyzed using descriptive statistics and a logistic regression model, while the Likert scale was used to determine the mean socioeconomic factor score encouraging deforestation and the economic incentives used to reduce deforestation. Gender distributions showed that the majority (65.9%) of the respondents were male while 34.1% were female. On family size, the majority of the respondents (66.8%) had a family size of 5–8. On age, between 21–25 years (46.0%) recorded the highest number. The average age of the respondents was 24 years. Educationally, 13.8% had a master’s education, 11.1% a bachelor’s education, 4.3% no formal education, 5.6% a higher education level, meaning master’s or PhD students, 56.1% had a primary education, and 9.0% had a secondary education. On occupation, the majority (50.4%) of the respondents were involved in farming as their main occupation. On income, the major income recorded a mean of 25,000 net, while the minor income recorded a mean of 15,500 net. Setting the forest ablaze, increasing farming activities, low level of literacy, increasing timber mafia, growing population, and poverty were the socioeconomic factors found. The economic incentives listed were for forest crop subsidies, an enhanced system of taxes on exploited forest products, the acquisition of well-monitored hunting licenses, alternative job opportunities, credit provision, and a limited ban on round log exports. The results of the logit regression established that rewarding socioeconomic factors were statistically significant variables at ( p < 0.05). Conclusively, if adequately controlled and applied, economic incentives can be an important instrument for reducing deforestation. Therefore, deforestation activities cannot be entirely eradicated but they can be reduced to the barest minimum by properly enforcing forest policies in terms of efficient forest policing. The goals of this study are to help with the implementation of appropriate policies and decision-making in forest management, as well as to provide a foundation for future scenario analysis of deforestation potential or to investigate potential environmental and human implications.