A theoretical framework for value co-creation analysis in carbon sink projects

With the maturation of the carbon market, carbon sink projects have become a thriving business model, and the value co-creation of carbon sink has become a hot topic in interdisciplinary research. However, the theoretical foundation for value co-creation of carbon sink is limited, and existing theoretical frameworks do not fully cover resource allocation, power dynamics, and interaction mechanisms among different actors in project operations. Therefore, this study, based on the theory of value co-creation and supplemented by residual rights theory and circuit of capital theory, has established a comprehensive theoretical framework to consistently understand the driving factors, co-creation process, and outcomes of resource transformation in projects. Using the Forest Ecological Bank in Fujian Province, China as a case study, we applied our theoretical framework for analysis. The results show that our theoretical framework can depict the complete process of value co-creation of carbon sink, reveal the roles played by diverse actors, and capture the project's dynamic changes. The research findings can provide guidance for the sustainable development of carbon sink projects in areas such as strengthening cooperation and partnerships, creating incentive mechanisms, and enhancing the role of third-party institutions.