Game Analysis on Forestry Investment Between the Central and the Local Government According to Tian Bao Project in China

By setting up the game theory model of forestry investment between the central and the local government, the paper deeply analyzes two kinds of interest subject in some Nash-equilibrium. Using the results, the problem of local finance quota is discussed which always is difficult to fulfill in Tian Bao project, and the reason is found that the central and the local government have been to proceed the kinds of games in producing the strategy of forestry investment. The paper also puts forward some advices that may affect and break the plight balancing investment of forestry, strengthening the regulations of forestry investment system of government, reforming the concept of performance among the local government and staff, further improving the mechanism of investing information, promoting the transfer payment system of the central government in order to establish a new Nash equilibrium based on the concept of sustainable development.