IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i24p13864-d703070.html
   My bibliography  Save this article

The Effect of Carbon Sink Plantation Projects on Local Economic Growth: An Empirical Analysis of County-Level Panel Data from Guangdong Province

Author

Listed:
  • Juan Wu

    (College of Economics and Management, Beijing Forestry University, Beijing 100083, China)

  • Fangmiao Hou

    (College of Economics and Management, Beijing Forestry University, Beijing 100083, China)

  • Wenjing Yu

    (College of Economics and Management, Beijing Forestry University, Beijing 100083, China)

Abstract

In recent years, there has been an increased focus on carbon sink plantation projects. Carbon sink plantations can slow global climate change and promote sustainable economic development, which is well suited to the needs of both ecological protection and economic growth. This article aims to accurately assess the causal effect of carbon sink plantation projects on economic development at the county level and explore its effect mechanisms. In this study, 56 counties in Guangdong Province were selected as the research areas, providing balanced panel data from 2006 to 2018. Then the propensity score matching and difference-in-differences (PSM-DID) model was used to estimate both the average and dynamic effects of carbon sink plantation projects on county-level economic development. The ordinary least squares (OLS) multiple regression results of the single-difference method and difference-in-differences (DID) model show that carbon sink plantation projects have a significant role in promoting county-level economic development. In addition, our findings suggest that the economic benefits of carbon sink plantation projects began to gradually appear from the sixth year after the projects were implemented.

Suggested Citation

  • Juan Wu & Fangmiao Hou & Wenjing Yu, 2021. "The Effect of Carbon Sink Plantation Projects on Local Economic Growth: An Empirical Analysis of County-Level Panel Data from Guangdong Province," Sustainability, MDPI, vol. 13(24), pages 1-19, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:24:p:13864-:d:703070
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/24/13864/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/24/13864/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Beyene, Abebe D. & Bluffstone, Randall & Mekonnen, Alemu, 2016. "Community forests, carbon sequestration and REDD+: evidence from Ethiopia," Environment and Development Economics, Cambridge University Press, vol. 21(2), pages 249-272, April.
    2. van Kooten, G. Cornelis & Eagle, Alison J. & Manley, James G. & Smolak, Tara M., 2004. "How Costly Are Carbon Offsets? A Meta-Analysis Of Carbon Forest Sinks," Working Papers 18166, University of Victoria, Resource Economics and Policy.
    3. Zhiguo Li & Jie Wang & Shuai Che, 2021. "Synergistic Effect of Carbon Trading Scheme on Carbon Dioxide and Atmospheric Pollutants," Sustainability, MDPI, vol. 13(10), pages 1-16, May.
    4. Pandit, Ram & Neupane, Prem Raj & Wagle, Bishnu Hari, 2017. "Economics of carbon sequestration in community forests: Evidence from REDD+ piloting in Nepal," Journal of Forest Economics, Elsevier, vol. 26(C), pages 9-29.
    5. Jianxin Geng & Chengzhi Liang, 2021. "Analysis of the Internal Relationship between Ecological Value and Economic Value Based on the Forest Resources in China," Sustainability, MDPI, vol. 13(12), pages 1-17, June.
    6. Giacomo Grassi & Jo House & Frank Dentener & Sandro Federici & Michel den Elzen & Jim Penman, 2017. "The key role of forests in meeting climate targets requires science for credible mitigation," Nature Climate Change, Nature, vol. 7(3), pages 220-226, March.
    7. G. Cornelis van Kooten & Alison Eagle & James Manley & Tara Smolak, 2004. "How Costly are Carbon Offsets? A Meta-Analysis of Forest Carbon Sinks," Working Papers 2004-01, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    8. Wytze van der Gaast & Richard Sikkema & Moriz Vohrer, 2018. "The contribution of forest carbon credit projects to addressing the climate change challenge," Climate Policy, Taylor & Francis Journals, vol. 18(1), pages 42-48, January.
    9. Peneder, Michael, 2003. "Industrial structure and aggregate growth," Structural Change and Economic Dynamics, Elsevier, vol. 14(4), pages 427-448, December.
    10. Artur Ribaj & Fitim Mexhuani, 2021. "The impact of savings on economic growth in a developing country (the case of Kosovo)," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-13, December.
    11. Rohit Jindal & Brent Swallow & John Kerr, 2008. "Forestry‐based carbon sequestration projects in Africa: Potential benefits and challenges," Natural Resources Forum, Blackwell Publishing, vol. 32(2), pages 116-130, May.
    12. Jindal, Rohit & Kerr, John M. & Carter, Sarah, 2012. "Reducing Poverty Through Carbon Forestry? Impacts of the N’hambita Community Carbon Project in Mozambique," World Development, Elsevier, vol. 40(10), pages 2123-2135.
    13. Benjamin T. Wood & Susannah M. Sallu & Jouni Paavola, 2016. "Can CDM finance energy access in Least Developed Countries? Evidence from Tanzania," Climate Policy, Taylor & Francis Journals, vol. 16(4), pages 456-473, May.
    14. Rudra P. Pradhan & Tamal Nath & Rana P. Maradana & Ajoy K. Sarangi, 2021. "Innovation, Finance, and Economic Growth in OECD Countries: New Insights from a Panel Causality Approach," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 18(04), pages 1-25, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yong Guo & Lang Yi & Jianbo Zhao & Guangyu Zhu & Dan Sun, 2025. "Spatio-Temporal Coupling of Carbon Efficiency, Carbon Sink, and High-Quality Development in the Greater Chang-Zhu-Tan Urban Agglomeration: Patterns and Influences," Sustainability, MDPI, vol. 17(19), pages 1-29, October.
    2. Jiwei Liu & Qun Li, 2022. "Impact of Major Events on Interprovincial Carbon Emissions—Based on PSM-DID Analysis," Sustainability, MDPI, vol. 14(12), pages 1-16, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Monge, Juan J. & Bryant, Henry L. & Gan, Jianbang & Richardson, James W., 2016. "Land use and general equilibrium implications of a forest-based carbon sequestration policy in the United States," Ecological Economics, Elsevier, vol. 127(C), pages 102-120.
    2. van Kooten, G. Cornelis, 2004. "Economics of Forest and Agricultural Carbon Sinks," Working Papers 18160, University of Victoria, Resource Economics and Policy.
    3. Nijnik, Maria & Pajot, Guillaume & Moffat, Andy J. & Slee, Bill, 2013. "An economic analysis of the establishment of forest plantations in the United Kingdom to mitigate climatic change," Forest Policy and Economics, Elsevier, vol. 26(C), pages 34-42.
    4. Rosenberger, Randall S. & Stanley, Tom D., 2006. "Measurement, generalization, and publication: Sources of error in benefit transfers and their management," Ecological Economics, Elsevier, vol. 60(2), pages 372-378, December.
    5. Zandersen, Marianne & Tol, Richard S.J., 2009. "A meta-analysis of forest recreation values in Europe," Journal of Forest Economics, Elsevier, vol. 15(1-2), pages 109-130, January.
    6. Sebri, Maamar, 2015. "Use renewables to be cleaner: Meta-analysis of the renewable energy consumption–economic growth nexus," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 657-665.
    7. Shaikh, Sabina L. & Sun, Lili & van Kooten, G. Cornelis, 2005. "Are Agricultural Values a Reliable Guide in Determining Landowners’ Decisions to Create Carbon Forest Sinks?," Working Papers 37017, University of Victoria, Resource Economics and Policy.
    8. Strand, Jon, 2016. "Mitigation incentives with climate finance and treaty options," Energy Economics, Elsevier, vol. 57(C), pages 166-174.
    9. Kovacs, Kent F. & Haight, Robert G. & Jung, Suhyun & Locke, Dexter H. & O'Neil-Dunne, Jarlath, 2013. "The marginal cost of carbon abatement from planting street trees in New York City," Ecological Economics, Elsevier, vol. 95(C), pages 1-10.
    10. Nijnik, Maria & Bizikova, Livia, 2008. "Responding to the Kyoto Protocol through forestry: A comparison of opportunities for several countries in Europe," Forest Policy and Economics, Elsevier, vol. 10(4), pages 257-269, February.
    11. Baranzini, Andrea & Borzykowski, Nicolas & Carattini, Stefano, 2018. "Carbon offsets out of the woods? Acceptability of domestic vs. international reforestation programmes in the lab," Journal of Forest Economics, Elsevier, vol. 32(C), pages 1-12.
    12. Miettinen, Jenni & Ollikainen, Markku & Nieminen, Tiina M. & Ukonmaanaho, Liisa & Laurén, Ari & Hynynen, Jari & Lehtonen, Mika & Valsta, Lauri, 2014. "Whole-tree harvesting with stump removal versus stem-only harvesting in peatlands when water quality, biodiversity conservation and climate change mitigation matter," Forest Policy and Economics, Elsevier, vol. 47(C), pages 25-35.
    13. van Kooten, G. Cornelis & Johnston, Craig & Xu, Zhen, 2012. "Economics of Forest Carbon Sequestration," Working Papers 130808, University of Victoria, Resource Economics and Policy.
    14. Markowski-Lindsay, Marla & Stevens, Thomas & Kittredge, David B. & Butler, Brett J. & Catanzaro, Paul & Dickinson, Brenton J., 2011. "Barriers to Massachusetts forest landowner participation in carbon markets," Ecological Economics, Elsevier, vol. 71(C), pages 180-190.
    15. G. Cornelis van Kooten, 2003. "Smoke and Mirrors: The Kyoto Protocol and Beyond," Canadian Public Policy, University of Toronto Press, vol. 29(4), pages 397-415, December.
    16. Moss, Jonathan & Cacho, Oscar J., 2014. "Farm-scale analysis of the potential uptake of carbon offset activities," 2014 Conference, August 28-29, 2014, Nelson, New Zealand 187402, New Zealand Agricultural and Resource Economics Society.
    17. Marshall, Liz & Kelly, Alexia, 2010. "The Time Value of Carbon and Carbon Storage: Clarifying the terms and the policy implications of the debate," MPRA Paper 27326, University Library of Munich, Germany.
    18. Eriksson, Mathilda, 2020. "Afforestation and avoided deforestation in a multi-regional integrated assessment model," Ecological Economics, Elsevier, vol. 169(C).
    19. Andrea Baranzini & Nicolas Borzykowski & Stefano Carattini, 2016. "Carbon offsets out of the woods? The acceptability of domestic vs. international reforestation programmes," GRI Working Papers 257, Grantham Research Institute on Climate Change and the Environment.
    20. Charles F. Mason & Andrew J. Plantinga, 2011. "Contracting for Impure Public Goods: Carbon Offsets and Additionality," Working Papers 2011.13, Fondazione Eni Enrico Mattei.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:24:p:13864-:d:703070. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.