| During the coming Ecological Civilization, the next profound period after the Agriculture and Industrial Civilization, none of our citizens living in world community can escape from protection of ecological environment. More importantly, forest, as the main colomn of terrestrial eco-system in the Planet, plays a key role in the global eco-system, which results that the sustainable development of forestry eco-economy becomes a valuable approach for governments to build eco-civilization. Besides, it’s always regarded as the core theme, or at least the main content, at both WFC(WORLD FORESTRY CONGRESS) and UNCC(UNITED NATIONS CLIMATE CONFERENCE). Since1980s, Chinese central government has concentrated on sustainable development of forestry economy. Realizing the coordinating improvement of social economy and ecological environment, particularly in recent10-year under the guidance of the Scientific Concept of Development, has to rely on efficient growth of forestry industry. To finally complete the target, several departments have taken a series actions such as National Forest Protection project and Farmland Returning To Forest project to promote the significant development of the industry. Positively, gross efficiency of Chinese forest development draws extensive attention to professors, current researches however can hard reflect Chinese present condition and future alteration. Further, lack of the full analysis of what factors impact efficiency and what methods can address puzzles is another remarkable barrier slowing Chinese amazing economic growth rate. Thus, this paper, based on these unsolved problems, is written for raising some possible approaches to clear the barriers, and then providing practice department and theory institute with reference.In the light of Public Product Theory, Externality Theory, and the relationship between governments and forest, this paper point that government must interpose the development of forestry eco-economy because of forestry public product and external effect. As a consequence, theoretically governments should be responsible for development of forestry eco-economy. Taking the fixed investment of silviculture from1993to2002as a case, investment activities present more publicity, and governments did shoulder most responsibility in these activities. Another one, combining the development of forestry industry and the growth of forest resources, the efficiency of silviculture investment went downward in recent years(since2002), amazingly similar to other kinds of public investment, though to large extent silviculture investment did promote the development of forestry economy and the improvement of forestry environment. These conclusions have been verified by DEA model and SE-DEA model. Besides, in respect to numbers of invalid year of forestry investment output efficiency after2002and decreasing efficiency compared to that before2002, insufficient utilization of silvicuture investment and low level of forestry industry development are two substantial reasons. Further study of realistic problems of current forestry ecological economy’s development show that unsound forestry financial system, loose supervision of forestry investment, and default of forestry investment policy are three essential roots leading to nowadays low efficiency of Chinese forestry eco-economy.For above reasons and problems, this paper has proposed following suggestions to improve the situation of Chinese forestry eco-economy.1. Perfect the public forestry financial system. According to the requirement of public finance, the restriction of related forestry laws and regulations need to be reinforces, and involved details should be perfected to make it more doable. Additionally, financial classification management system, for example, the construction and development of local forest are jobs of local department while central government focus more on national development of forest, forestry products and services, also need to be improved. Further, forestry-related transfer payment system need to be developed likewise. Strengthen the supervision of forestry investment.2. Rise the public budget for forestry input. Beside increasing input for relevant products like forestry techniques and information processing, more finance can be invested to talents training, exchanging and theory researching, etc. |