Game analysis of Chinese stakeholders in collective forest rights system reform

In the current stage of Chinese forest ownership reform, the central and local governments as well as the forest farmers play different roles with variations in their expected returns. Managing these respective relationships between the forestry stakeholders to maximize their benefits while actively engaging each stakeholder in the collective forest ownership reform process has become an important issue. This study uses the game theory methodology to analyze the relationship between the different reform stakeholders and then builds on the forest farmers’ participation in the reform model process at the reform movement micro-level. This model calculates the forest products equilibrium marketing sales and the government subsidies provided to the forest farmers, when the forest farmers willingly participate in the reform process. It will provide a reliable basis for formulation of government policies which positively impacts Chinese forestry reform.