Forest Carbon Sequestration Subsidy and Carbon Tax as Part of China’s Forestry Policies

Abstract

Forestry is an effective strategy for climate change mitigation. However, forestry activities not only sequester carbon but also release CO 2 . It is therefore important to formulate carbon subsidy and carbon taxation policies on the basis of the price of carbon. In this study, a forestry-based Computable General Equilibrium (CGE) model was built by using input-output data of China in 2014 to construct a Social Accounting Matrix (SAM). The model simulates different carbon price scenarios and was used to explore the effects of carbon subsidy and carbon taxation policies on the forestry economy. The main results can be summarized as follows: When the carbon price is low, the implementation of the policy increases forestry output and causes forest product prices to rise. When the carbon price is high, the carbon tax will produce an inhibitory effect, and output and prices will decline. With the constant rise of the carbon price, value addition will decrease, with flow to other industries. For the carbon sequestration policy, there is a reasonable carbon price range bound. In light of these results, relevant policies are proposed.

The Impacts of Calamity Logging on the Development of Spruce Wood Prices in Czech Forestry

“…In 2019, employees in forestry received less than EUR 990 in comparison to the average gross nominal wage in the Czech Republic of EUR 1.35 thousand (in the third quarter of 2019) [9]. Other negative impacts of excessive logging in the Czech Republic are reduced carbon binding (CO 2 ) [10] and reduced water retention in soil [11].…”

The Potential of Juniperus thurifera to Sequester Carbon in Semi-Arid Forest Soil in Spain

“…Climate change is one of today's most important global environmental issues, which directly affects all natural ecosystems and socio-economic systems [1]. One of the main strategies to mitigate climate change is based on the soil functioning as a carbon (C) sink [2].…”

The role of tourism in China’s economic system and growth. A social accounting matrix (SAM)-based analysis

“…Liu and Wu, G. (2017) used an SAM to identify the price impacts and transmitting paths among different economic sectors of imposing CO 2 , methane, and nitrous oxide emission taxes. Liu and Wu, F. (2017) turned their attention to carbon price and forestry economy, elaborated a 2014 SAM for China to calibrate a forestrybased CGE model and simulated different carbon price scenarios to explore the effects of carbon subsidy and carbon taxation policies on the forestry economy. On the same line, Wang et al (2018) elaborated an SAM to calibrate a CGE model and assess the impact of energy taxation on economy, environmental and public health quality in Tianjin, China.…”