The economic feasibility of Blue Carbon cooperation in the South China Sea region

Coastal Blue Carbon is the carbon stored in mangroves, tidal marshes and seagrass meadows. There is an urgent need to protect the coastal ecosystem by developing Blue Carbon economy. In this paper, we investigate the feasibility and mechanism of the Blue Carbon cooperation in the South China Sea Region (SCSR) from an economic angle. We utilize the paradigm of Cobb-Douglas production to stimulate Blue Carbon development and mathematically prove the feasibility of such a cooperation strategy. The Shapley value in game theory is further applied, which not only confirms the reality of this cooperation but also provides an allocation mechanism of the cooperation benefits. The results suggest that there exists a profitable opportunity for the Blue Carbon cooperation in the SCSR. Further discussion and suggestions are provided in promotion of research focus on the Blue Carbon cooperation. © 2020 Elsevier Ltd. All rights reserved.