Abstract:

Forest ecosy stem is the biggest land ecosy stem in the w orld.Public w elfare forests in building forest ecosystem are possessed of nonexclusive characteristic of public goods, which leads to economic ex ternality.It is an im portant facto r of market failures and causes law-efficient allocation of ecological resources for a long time.Only if effectively to solve the problems of market failures, can we make the balance between ecology and economy so that we can keep good quality and hig h efficiency in building forest ecosy stem in China.By way of analy zing the market failures, the paper raises several countermeasures such as combining property rights, Coase theorem and g rade price of ecological quality in o rder to amend a part of market failures.The article concerns that the price fluctuation of tim ber exerts an influence on supply of ecology, therefo re w e should timely adjust the grade price of ecology as price fluctuation of timber in order to assure effective supply of ecoloy.

Key words: Forest ecology, Market failures, Combining property rights, Coase theorem, Price of ecology