Keywords: genuine saving, forests, calculation, sustainability, policy making, China, sustainable development, forest resources, forest depeletion, human capital investment, forest plantation
Calculation and analysis of genuine saving for forests in China
'Genuine Saving' is an indicator which reflects the practical steps towards sustainability. This paper for the first time estimates the Genuine Saving for forests in China. The results show that the Genuine Saving for forests in 1999 was 10290.25 billion Yuan (RMB) and 19402.52 billion Yuan in 2003. This shows that the annual increasing rate was 17.18%, which is higher than the traditional annual average Gross Domestic Product (GDP) growth rate of 8.9% in the same period. However, during 1999–2003, the rate of Genuine Saving for forests to gross domestic saving in China has decreased 1.34%. This is partly caused by the increased depletion of forests based on the diminution of forest resources. The paper concludes with a discussion, followed by the finding that Plantation is a major factor of genuine saving for forests in China. 'Promotion measures of human capital investment' should therefore be effectively addressed.