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Reducing greenhouse gases in the atmosphere is becoming a pressing issue for the global community. Afforestation and reforestation are promoted worldwide as an effective means of sequestering carbon. For its national interest and global concerns, China has made great efforts to protect its existing forests and develop programs of afforestation and reforestation. Based on two surveys recently conducted in Liping County, Guizhou province, this paper investigates the economic changes associated with the implementation of the “Grain For Green” policy. Based on the analytical framework of benefit cost analysis, this paper concludes that the implementation of the reforestation of sloping agricultural land policy would not be possible if there were no government subsidies for the peasants. The short term economic returns of land and labour from forestation are substantially lower than those generated from grain or cash crop production on the steep slope lands. The government subsidies provide great economic incentives for peasants to take part in the project. The subsidies in fact have elevated peasant income in rural Liping. The estimated potential economic returns of plantations over the long run indicate that the removal of the government financial subsidies would not create an economic crisis for the peasants if the current market conditions continue. [Copyright &y& Elsevier]

This paper introduces an integrated assessment (IA) approach for a Canada-China joint research project that linked forest carbon sequestration, forest resource management, and local sustainability enhancement. The purpose of the IA was to improve the measurement of carbon in different land uses and vegetation covers, as well as to direct decision makers to those land uses or options as an CO2 emission reduction strategy while supporting rural sustainable development. In this connection, three questions are addressed in this paper: [1)] How will forestry carbon sequestration land use policies affect regional sustainability prospects in rural China? [2)] How could carbon sequestration land use plans be better integrated into sustainable development strategies? and [3)] How can the IA approach assist Chinese government agencies in design effective forestry land use policies? The IA approach was applied in three rural sites of western China. These case studies are described in detail by following articles in this volume. The project improved the capacity of local resource managers in identifying the economic, social and environmental impacts of rural land use decisions that might increase carbon sequestration and enhance local livelihood. [Copyright &y& Elsevier]

The Sloping Land Conversion Program (also known as “Grain for Green” or the Upland Conversion Program) for converting cropland to forest is one of China''s most ambitious environmental initiatives, and is one of the world''s largest land-conservation programs with a budget of RMB 337 billion (over US$ 40 billion). Although environmental impacts have played a vital role in the general reasoning and argumentation for forest plantations, environmental impact analyses have often received less attention than economic analyses in the planning of plantation forestry projects. The overall goal of this paper is to evaluate the program''s environmental impact considering the farmer''s interests and the potential social benefits due to carbon sequestration in different scenarios based on household and field survey data in Dunhua County. Our findings are that: (1) in many cases, the program did not give adequate consideration to land productivity and environmental heterogeneity when selecting plots; (2) more than half of the reforestation plots were on flat cropland (slopes of less than 5°); (3) in five of the eight townships, net incomes on reforested land were substantially above or below previous crop incomes, raising questions about the efficiency of the allocation of compensation to farmers participating in the program; (4) the potential carbon co-benefit increased the NPV of the program by 5954–7009RMB/ha. In conclusion, we recommend that more attention should be paid to the quality of reforestation programs rather than just their scale and note that consideration of potential carbon sequestration co-benefits enhances the benefits of cropland conversion programs. [Copyright &y& Elsevier]