On a game model of forestry investment between the central government and the local government in China

Through founding a game model of forestry investment between the central government and the local government, the paper deeply analyzes two kinds of interest subjects in a certain Nash-equilibrium. Using the results, the problem of local finance quota is discussed, which is always difficult to fulfill in investment project. The reason can be found that the central government and the local government have presented 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.