The present paper evaluates the trade-off between economic development and environmental degradation with respect to different countries. The analysis is based on cross-country data on forest degradation and the level of economic development. It also examines the factors that affect environmental degradation. The study highlights that the rate of deforestation is not uniform in all countries since their response to the policy of forest appreciation varies. The trade-off between the level of per capita consumption of electricity, population growth and average fresh water withdrawal shows an impact on the degree of deforestation.