| Worse ecological environment of western area restrains local economic development and endangeres the middle-east ecological environment. Western development ultimately relies on the improvement of ecological environment of western areas. So, it will be significant and far-reaching for the sustainable development of local areas, whole society and economy to research on the western conversion cropland to forest and grassland (ab.CCFG), carry on CCFG projects, strengthen ecological environment construction with the major sector of vegetational recovery and reconstruction.Based on the theories of Investment Economics, Ecological Economics, and Public Economics and experience of China'CCFG, the paper gives a comprehensive and deep study to CCFG investment mechanism especially in funds sources and compensation policies of CCFG in Pingliang prefecture, Gansu province so as to make useful references for the municipal government to carry out the projects successfully for all concerned.The paper considers, it will be the major approaches for the deep development and sustainable protection of CCFG projects to construct major forest projects efficiently, improve survival rate of forests and grasses, enhance projects investment management especially in contractor and funds management and establish an intensive, comprehensive and regionalized investment management system. Build and use financial derivatives such as western development industrial fund, venture capital fund and western investment securities to build an efficient western ecological financial system to open up more channels of funding sources. And then reinforce funds management to ensure a stable, timely, and continuous funds supply for the CCFG so as to to stimulate the initiatives of CCFG farmers.In the meanwhile, working out different compensation rate and more reasonable compensation standard, delay compensation time limit properly and strengthen ecological compensation supervision and policy execution. These items concern a social problem of foundmental interests of farmers. Deepening the reform of the forest system, making forest ownership clearer and gradually establishing a technical support system of CCFG will be good measures to solve the first imperative of farmers and laid a good foundation for sustained development of CCFG.Finally, concluding CCFG development mode of the other adjacent provices, the paper suggests five CCFG investment modes and wishes to help and guide CCFG projects of the other provinces in China. |
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