A Cost and Benefit Analysis of Sloping Land Conversion Program in China—A Case Study in Three Distinctive Regions—

  • CHENG Shuangzhi
    Graduate School of Economics, Keio University School of Foreign Studies, Jilin University of Finance and Economics
  • SAWADA Eiji
    Faculty of Economics, Kyushu Sangyo University
  • ONUMA Ayumi
    Faculty of Economics, Keio University

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  • 中国の退耕還林政策に関する費用便益分析—特性の異なる3地域におけるケーススタディ—


<p>This paper aims to figure out the ideal subsidy policy for farmers in multiple regions of different traits in order to assure the sustainable development of the Sloping Land Conversion Program (SLCP). Although SLCP implemented as a national forest governance project since 1999 has reforested an area of roughly 8 million ha over the past decade, uncertainty also surrounds the sustainability of both farmers’ participation and government’s subsidy policy. In order to analyze the cost benefit of SLCP, this study probes into both the survey data of Yuxi City in Yunnan Province, Nanchong City in Sichuan Province and Da’an City in Jilin Province in 2014 and 2015, and government’s statistical information. The current subsidy policy is of two unified standards divided by Southern and Northern regions and some beforehand studies argue subsidy amount could be divided by opportunity cost. However, this analysis shows that if the subsidy amount is divided by net private benefit, the proper subsidy amount should be on the decrease in sequence of Da’an, Nanchong, and Yuxi, which is in contrast to both the sequence of current subsidy policy and beforehand studies. Since improper subsidy policy could not stimulate regions of high demand and is a waste to regions of low demand, this paper argues that in order to maintain the sustainable development of SLCP, it is necessary to subdivide regions of subsidy policy.</p>


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