Assessing the role of institutional effectiveness on carbon sequestration: the case of China's nature reserve policy

Purpose - Carbon storage in protected land is a practical climate stabilization strategy. It is increasingly being recognized as an essential means of safeguarding biomass carbon and improving local ecological conditions. Yet, increasing soil carbon sequestration by setting aside nature reserves does not depend only on the scale of the reserve but more so on the implementation and enforcement of the reserve protection policy. This paper aims to discuss the aforementioned issues. Design/methodology/approach - The authors show how nature reserves established and managed by different administrative levels affect carbon sequestration. Empirically, the authors estimate a time-varying difference-in-difference model that exploits China's distinct four-layered hierarchical nature reserve management system at the county level. Findings - The findings show that higher administrative level (i.e. national and provincial) nature reserves have no effects on the carbon dynamic. However, reserves managed by lower administrative levels (i.e. prefecture- and county-level) are associated with reduced carbon sequestration. The results imply local governments fail to fulfil their responsibilities for nature reserves protection, leading to increased extractive activities and declined ecological biomass. Research limitations/implications - Responsibility and accountability mechanisms for the violation of the nature reserves requirements need to be stipulated accordingly. Greater emphasis should be placed on nature reserves at the base level. The central government should continue efforts toward the establishment of ad hoc and independent management agencies at the ground-management level that are free of influence from base-level governments. Originality/value - The heterogeneity in the performance of nature reserves across administrative levels confirms that ecosystem service quality is highly dependent on establishment, management and supervision. This provides a better understanding of the socio-ecological interdependence of protected areas.