This project examines the driving forces behind the land-use change and evaluates the effects of land-use transition on soil organic carbon density and sequestration cost in China. It contributes to the literature in three aspects. First, it applies a discrete choice method to model multiple land-use options with a unique set of high-quality data. Second, it conducts a comprehensive analysis of biophysical characteristics and changes in soil carbon storage caused by land-use change. Third, it examines the economic efficiency of alternative land use policies as instruments for carbon sequestration in China.