# Individual action, sharing scarce resources, sharing information? A study on how to effectively manage forest pests and diseases based on carbon trading

## TL;DR

This paper studies how governments and corporations can best work together to manage forest pests and diseases using carbon compensation incentives.

## Contribution

The paper introduces a novel approach using differential game models to compare three collaboration modes for managing forest pests and diseases.

## Key findings

- Scarce resource sharing benefits the government most when control costs are high and benefits are low.
- Information sharing provides the greatest benefit to corporations when their management costs and benefits are low.
- The optimal collaboration mode depends on the relative costs and benefits for both governments and corporations.

## Abstract

In recent years, forest pests and diseases have had a significant impact on forest ecosystems. To incentivize corporations to manage forest pests and diseases, the government provides certain carbon compensations to enterprises involved in this management. In the process of controlling forest pests and diseases, the modes of collaboration between the government and corporations are primarily categorized into three modes: independent action, scarce resource sharing, and information sharing. To determine the applicability of each relational mode, this paper constructs three differential game models and compares and analyzes the equilibrium results obtained from these modes. The research indicates that if the cost of government-managed forest pest and disease control is high and the benefits of such control are low, then the scarce resource sharing mode can offer the government the maximum benefit; conversely, the information sharing mode can provide the government with the greatest benefit. If the cost and benefits of corporate-managed forest pest and disease control are low, then the information sharing mode can offer corporations the maximum benefit; otherwise, the scarce resource sharing mode can provide corporations with the greatest benefit.