On The Industrial Demand Of Forestry Carbon Sequestration

Climate change is a global environmental problems recognized by the internation, which seriously affects the development of economy and society. The regulations of response to climate change(2014-2020) has pointed out that the carbon intensity would be declined 40%-45% from 2005 to2020. Industries face massive pressure to cut carbon emissions as subject. By forest carbon sink to decrease greenhouse gases, which is the most economic and development potential way. Although industries will update the equipment and technology for reducing emissions in the short term, when the reduction space of technology and equipment becomes specially small and the direct cost of emission reduction is enough large, which will choose the forest carbon to offset carbon emissions in the long term. Study about the demand of forest carbon sink has a important promoting significant in forestry carbon sink reserve and development.Taking the industries of Hangzhou, Ningbo and Wenzhou as cases, the paper calculates each industry’s emission reduction cost by using parametric method of directional distance function.Analyzing the forest carbon sink demand of different industries by comparing the cost of emission reduction and buying forest carbon sink. The results show that, the cost of marginal abatement of high emission intensity sectors is rather low. The lower emission intensity, the higher cost of marginal abatement. In the minimum cost of emission reduction, the industries of high carbon intensity are the focus object which are responsible for mission reduction, the main body of forest carbon sink demand.Also, part of the slightly higher carbon intensity is the part of the high demand.Based on the above conclusions, putting forward to the following policy suggestions. The nation need to formulate regulations to simplify the carbon measurement and monitoring cost and create a good environment for carbon sequestration afforestation. Introducing the carbon reduction index and increasing carbon sink demand when formulating emission reduction policies; In addition,different industries have different methods when setting goals for reducing carbon emissions. Especially the industries which have a high proportion decline of carbon intensity under optimization of reduction cost, it is necessary to set high standards of carbon intensity reduction for industries of high carbon intensity; Setting targeted proportion for buying carbon sequestration, Compulsory require the industries of high emission intensity to buy, and formulating preferential measures of reducing the tax for industries of low carbon intensity.