In response to the climate change, our government has implemented the Greenhouse Gas Reduction Act bill since 1 July 2015. In the Article 21, an enterprise's quota of carbon emissions through carbon trading should be from domestic regions as a priority. It shows the importance of supply side of carbon credits. To effectively manifest external benefits of forest carbon sinks, our government has to transform them into monetary value to increase landowners' afforestation incentives. This study built the forest carbon payment model and estimated the forest carbon storage and forest carbon sequestration in Taiwan. Then, this study simulated how the carbon rent policy and carbon purchase policy are implemented in Taiwan. This study also conducted both policies with or without baseline of carbon stock to analyze political cost and performance under different carbon subsidy policies promoted in Taiwan. Finally, this study based on the payment model and simulation results to propose polity suggestions to be provided as a reference for our government.