Abstract: Forest subsidies policies supported by central government have been put in place since 2009 to improve the initiative and reduce the risk of forest management for farmers, but it is necessary to discuss whether forest subsidies have achieved the anticipated objectivities. The purpose of this study is to discuss how forestland managed by rural households impacts the subject selection and the effects of forest subsidies policies. Method of logit model and triple difference model are employed separately to analyze the impact on object selection of forest subsidies policies and its effects from forest management size scale. The results indicate that: (1) the probability of sharing forest subsidies will be as the forestland managed by households expands. In order to reduce transaction cost, forest department would encourage large households to participate the forest subsidy projects, thus causing the unfairness for these forest subsidies project implementation; (2) on the other hand, the forest subsidy projects drive the input and income of large-scale farmers’ forestry production compared with small scale households, but it is not significant. The implementation of forest subsidy policies has not achieved the expected goals. In view of these facts, this paper provides some recommendations, including developing forest subsidy policies that consider the common and special subjects, strengthening the transparency and monitoring mechanism of forest subsidy policies.

Key words: forestry subsidy, triple difference model, forestland size, Zhejiang Province