Abstract: Externalities of ecological and public benefit forest,the mixed policy of governance subsidy and decreasing tax are briefly discussed in the paper from the view point of economic-man,then draw a conclusion that both governance subsidy and the mixed policy can internalize the externalities,and correct "market failure",at the same time,put forward five suggestions-Financing for value compensation of public benefit forest,making reasonable compensation norm,giving manager exclusive right of production,decreasing tax and employing market to correct "market failure".