Research On The Sustainability Of The Grain-for-green Policy

Grain-for-green project has now been the most tremendous and difficult ecological construction project with most farmers'participation in the history of China's forest construction since it was carried out in Sichuan, Shanxi and Gansu in 1999. Governments'behavior and micro subjects'economic incentive are significant factors in the effectiveness and the sustainability of the grain-for-green policy, so it's very important to do profound research on them. However, the research literature in existence has some shortages as follows: firstly, there is only a little literature with regard to the cost-benefit analysis of participants in the project, which doesn't expound the economic foundation of the participants'willingness; secondly, a majority of research just mentions the relationship between participants'behavior and the sustainability of the policy lightly, and doesn't expatiate upon their internal function mechanism.Under the circumstances, this paper makes a profound analysis of the sustainability of the grain-for-green policy from the perspective of governments'behavior and micro subjects'economic incentive.Firstly, this paper expounds the meanings of the grain-for-green policy, governments'behavior, micro subjects'economic incentive and the sustainability of the policy, then it makes a profound analysis of the influence factors of the sustainability based on them.Secondly, based on the analysis of the institutional supply and the capital investment of the central government from the perspective of policy logic and the cost-benefit analysis of local governments implementing the policy, this paper sets up a Double-Task Principal-Agent Model to analyze the optimal incentive contract between central and local governments during the implementation process of the policy.Thirdly, based on the analysis of the economic incentive of farmers, companies and households in the project using the cost-benefit method and the game analysis of the relationship between micro subjects and governments, the paper makes an empirical analysis of the influence factors of farmers'participation willingness using the investigation data.Lastly, the paper analyzes the function mechanism of governments'behavior and micro subjects'economic incentive on the sustainability of the grain-for-green policy, and then puts forward some countermeasures to achieve the sustainability of the policy from the aspects of strengthening the institutional construction, establishing the ecological construction compensation mechanism and improving the related measures of the policy and so on.