Enhancing Forestation Carbon Sinks in China: A Comparative Analysis of New and Traditional Market Incentive Frameworks

25 Pages Posted: 11 May 2024

See all articles by zongshun Wang

zongshun Wang

affiliation not provided to SSRN

Daojun Zhang

affiliation not provided to SSRN

Xiaohui Tian

Renmin University of China

Mei Qu

affiliation not provided to SSRN

Han Zhang

affiliation not provided to SSRN

Abstract

New markets for ecosystem services have been proposed as a way to diversity landowner’s revenues from forestation. This study examines differences in China’s forestation carbon sinks under new and traditional market incentive frameworks. We found that China could biophysically sequester 209.77 Mt CO2 annually through forestation, but due to lower carbon prices, only less than 40% of this potential was currently investable. Under the new market incentive scenario, China’s investable forestation area, carbon sink potential, and carbon sink costs were roughly double, 1.32 times, and half of those observed under the traditional market, respectively. China’s carbon sink potential intensity of reforestation was 1.54 times as great as that of afforestation, with its carbon sink costs being about 40% of afforestation’s. These findings can provide valuable recommendations for policymakers.

Keywords: Forestation, Carbon sinks, Ecosystem services, Carbon Neutrality

Suggested Citation

Wang, zongshun and Zhang, Daojun and Tian, Xiaohui and Qu, Mei and Zhang, Han, Enhancing Forestation Carbon Sinks in China: A Comparative Analysis of New and Traditional Market Incentive Frameworks. Available at SSRN: https://ssrn.com/abstract=4825171 or http://dx.doi.org/10.2139/ssrn.4825171

Zongshun Wang

affiliation not provided to SSRN ( email )

No Address Available

Daojun Zhang

affiliation not provided to SSRN ( email )

No Address Available

Xiaohui Tian

Renmin University of China ( email )

Room B906
Xianjin Building
Beijing, Beijing 100872
China

Mei Qu

affiliation not provided to SSRN ( email )

No Address Available

Han Zhang (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

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