ECONOMIC EFFECT OF PILOT POLICIES FOR FORESTRY CARBON TRADING IN FUJIAN PROVINCE, CHINA: BASED ON THE PSM-DID MODEL

This paper uses the Propensity Score Matching-Difference in Differences (PSM-DID) model to study the impact of the implementation of forestry carbon trading pilots in Fujian Province, China, on the local economic development, and conducts heterogeneity tests from three aspects: population density, the development level of the forestry economy, and fiscal capacity.The research conclusions are as follows:(1) Overall, the implementation of forestry carbon trading pilot policies in Fujian Province significantly promotes local economic development.(2) Heterogeneity analysis shows that in areas with high population density, forestry carbon trading pilots have a greater impact on economic development than in areas with low population density; In areas with developed forestry economy, the pilot of forestry carbon trading has a greater impact on economic development than in areas with underdeveloped forestry economy; In areas with strong fiscal capacity, the pilot policy of forestry carbon trading has a greater impact on economic development than in areas with weak fiscal revenue and expenditure.