How can we stop deforestation without risking our economy further?

All you need to do is evolve the industry so that other items are used to produce wood-based products. For instance, you can make paper out of hemp or taro roots, which would create jobs for cultivators and would have a lesser impact on the earth than using trees. You can also use brick and stone in construction instead of wood. While stones and bricks are heavier, they also last longer and are sturdier that wood. While it would be necessary to use wood for floors and ceilings the housing projects would not be so different from the ones going on today. Our way of doing things would not change much, it would just become more tree-friendly.