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Sustainable Management of Land Resources: The Case of China’s Forestry Carbon Sink Mechanism
Summary
Researchers used a difference-in-differences model on 30 Chinese provincial-level regions from 2005 to 2020 to evaluate which forestry carbon sink mechanism (FCSM) policies most effectively generated socioeconomic value, finding that China's forest carbon policies have underutilized potential for meeting carbon neutrality goals.
Compared to more developed countries, the use of land resources is less efficient in China. China’s vast forest land area gives it a rich and underutilized carbon sink. This is an important way for China to achieve the goals of “carbon peaking” and “carbon neutrality”, which is of great significance to China’s sustainable development. In the past 20 years, China has designed a series of policies to serve the development of forestry carbon sinks, namely the forestry carbon sink mechanism (FCSM). However, the questions of which policy is the most important, and what is the socio-economic value it generates, have not been fully investigated. Accordingly, this paper studied 30 provincial-level regions in China from 2005 to 2020 using the difference-in-differences (DID) model. The conclusions show that: (1) the FCSM does increase the socio-economic value of land resources, thus improving the sustainability of land resources; (2) the FCSM helps to increase forest coverage, forest stock volume and the forest coverage rate, which increases the social value of land resources from the greening path; (3) the FCSM helps to increase the gross forestry product, which increases the economic value of land resources through the path of increasing production value.
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