Afforestation Subsidy Determination for Haloxylon ammodendron (C.A.Mey.) Bunge in China Based on Cost–Benefit Analysis

Subsidies are an effective instrument to encourage farmers engage in afforestation which provides many ecosystem services. A scientific and reasonable subsidy level should reflect the demands of various stakeholders so that scheme can be accepted by both government. This study aimed establish a framework for designing attract voluntary participation way seeks raise farmers’ government’s returns while reducing financial expenditure. The determines optimal integrating direct costs, opportunity ecological benefits conduct cost–benefit analysis over period afforestation. As case study, we focus on planting Haloxylon ammodendron (C.A.Mey.) Bunge Alxa, Inner Mongolia. results show required motivate is lower than according willingness pay. Under level, government reach balance point incentives without requiring unreasonable spending. Additionally, current substantially recommended subsidy; there still room improvement policy. research developed herein help policy decision makers design schemes contribute restoration future.