Research On The Economic Benefits Of Forestry Carbon Sinks

In this article, starting from the environmental economics theory, investment economics theory and financial management theory, sorting through the domestic and international researchs, and analysis of international and domestic situation of development of carbon trading market and forestry carbon sinks, revealing the problems of development of forestry carbon sink in China. Based on Sichuan Empirical Study of CDM afforestation and reforestation projects, explaining the feasibility of internalization of external benefits of forest and potential economic value of forest carbon sink through quantitative analysis.This article selects four representative species of forest carbon sink afforestation,researching economic benefits of forestry carbon sink project senario and non-carbon-sink afforestation project senario. Using allometric equation method, the long-term trend method,and in accordance with CDM afforestation and reforestation methodological requirements,using biomass expansion factor method for data analysis.Study concluded that when project period setted as 60 years similarly, the non-carbon-sink afforestation financial net present value of each species are negative, while carbon sink afforestation are positive and significantly higher than non-carbon-sink afforestation scenarios; when Projects selected the best project period for each species, the average best project period of carbon sink afforestation senario is 16 years longer than non-carbon-sink afforestation senario, the financial net present value is 4.41 times of non-carbon-sink afforestation. Due to the existance of development costs of carbon sink afforestation projects, the larger of the project area, share of the project development costs will be lower per unit area. through the analysis of financial net present value per unit area of different scales, obtained with the increase of the scale, changes in the financial net present value due to area increasing decreases. when the project area is 500 hectares or less,the change of financial internal rate is relatively obvious, when it's more than 500 hectares,the change is relatively less obvious. From the view of tree species, similar to traditionalafforestation, under the scenario of carbon sink afforestation, the economic benefits of fast-growing species are still higher than slow-growing species, but with the growth of the project period, the economic benefits of slow-growing species will gradually increase, even higher than the fast-growing tree species.According to the results, this article analyses priority of selection of tree species,project period and project scale. Meanwhile this article elaborated different standards at home and abroad, and offered proposals for selection. And forestry carbon sink investment considerations and risks are described.Our country is still in the primary stage of the development of forestry carbon sinks,there are many problems to be solved, research suggests that organizing regular training of forestry carbon sinks related knowledge will comprehensively improve the cognitive level of forestry carbon sinks in our counrty. Targeted support for forestry carbon sinks advisory organizations will provide technical support for the development of our country's forestry carbon sinks industry. A comprehensive plan for the country of forestry carbon sinks priority development area is an important task to further promote the development of our country's forestry carbon sinks industry. Meanwhile, while the construction of carbon trading in the spot market and we should begin to gradually explore the construction of a carbon futures market. In addition, while carbon market developing rapidly in our country, Sichuan province should also accelerate the filing of the carbon trading mechanism and initial start carbon emissions quota trading.