By using the production factors input equilibrium model based on the cost utility theory,environmental policies and measures of government controlling forest reduction were investigated and analyzed.They are: providing the subsidy to the forest product,reducing the agricultural subsidy,desearcing the customs duty,implementing trade protection and so on.The conclusion is: these policies and measures,no matter in long-term or short-term,will always cause the forest area reduced continually,because these policies can not eliminate the basic reas...