Does Collective Forest Tenure Reform Improve Forest Carbon Sequestration Efficiency and Rural Household Income in China?

This study investigates the impact of China’s Collective Forest Tenure Reform (CFTR) on forest carbon sequestration efficiency and rural household income, two critical indicators of ecological sustainability and economic development. Using a difference-in-differences (DID) approach, the study analyzes data from 31 provinces between 1997 and 2014. The results indicate that CFTR significantly enhances forest carbon sequestration efficiency through land use optimization and industrial structure upgrading. Moreover, the reform positively influences rural household income by increasing timber yield and facilitating labor mobility. The study also explores the heterogeneity of these impacts across regions, income levels, carbon sequestration efficiency levels, and carbon trading pilot areas. These findings provide valuable insights for policymakers aiming to balance ecological sustainability and economic growth through targeted forestry management strategies.