Applying Economic Principles to Improve the Quality of Forestry Carbon Sinks Trading in China

Abstract

The issue of climate change has been continuously concerned by countries around the globe, and with the signing of a series of documents, such as the Paris Agreement, people are gradually realizing that the climate issue is not just an environmental issue, but is also gradually turning into a new way for developed countries to control the world. The core solution to climate warming is to reduce the amount of carbon dioxide in the air. Therefore, China's establishment of the carbon peak and carbon neutral targets shows the importance it attaches to the ecological environment, and at the same time, it also demonstrates the style of a great power and its responsibility. One of the ways to achieve the dual-carbon goal is to trade carbon sinks, especially forestry carbon sinks. By applying relevant economic principles such as externalities and the resource curse, raising the awareness of individual consumers about carbon sinks, allowing enterprises to contract their own forests for carbon compensation, and improving the relevant systems for forestry carbon trading, the quality of carbon trading can be improved and the major obstacles it faces can be overcome.