Study On The Incentive Mechanism Of Hei Long Jiang Forestry Carbon Sinks

Bio’s carbon sink function has played a special role in developing low-carboneconomy, trees are even more not to be ignored. Heilongjiang, as China’s forestryprovince, has a strong carbon sink reserves and carbon sequestrations, which are thebasic conditions for Heilongjiang to carry out forestry projects. Recently Heilongjianghas actively carry out some projects in response to the government’s call, but also someincentives. In order to further play out its carbon sink function, it is necessary to furtherimprove and perfect the conduct of policy measures.This paper is based on the theory and method of information economics. Startingfrom Heilongjiang forestry’s carbon sink function,constructing an entrust-agentincentive model in the practice of the carbon sink projects by the government and thesilviculture and analyzing their behaviors. In the circumstance of information symmetric,the government is able to effectively observe the silvicuture’s behaviors and to adoptcorresponding incentive measures according to its behaviors to make both reach Paretooptimal. The silvicuture’s behavior has only something to do with its profits but notother elements. Otherwise, the government cannot effetively respond to the silvicuture’sbehaviors. Therefore, it is necessary to adjust its strategy, especially on thecompensation for the silvicuture. Then the optimal incentive contract are also affectedby silviculture costs, risks, government compensation measures and other externalfactors. In real life, information symmetry condition does not exist, therefore, thisarticle only tests in this case. Based on the data released by the official website ofHeilongjiang forestry department in2011, this article proceeds some parameters anddata, then make estimation for the incentive contract which to be implemented.Analyzing the elements which affect the optimal incentive contract after the analysis ofthe model, we can come out with some measures which can promote the optimalincentive contract and make some contributions for the development of Heilongjiangforestry carbon sinks.