A framework of payments for water-related ecosystem services (PWES) based on green water management

Abstract

Green water describes precipitation that infiltrates into the unsaturated soil layer and returns to the atmosphere via plant transpiration and soil evaporation, which are two functions of the hydrological cycle. Green water provides the basis for timber growth, crop production, and ecosystem services. However, it has not been adequately accounted for in traditional payments for water-related ecosystem services (PWES), which predominantly consider on blue water and hence underestimate the availability of all water resources. In this study, a new framework of payments for green water-related ecosystem services (PGWES) is proposed based on green water management (GWM) and green water compensation (GWC). This framework is constructed with game theory modelling, hydrological simulation and scenario evaluation. Then, the Xiangjiang River Basin (XRB) is used as a case study to test and evaluate the feasibility of the framework. The results of this study are as follows: (a) the framework of PGWES and its game payoff matrix and optimal payoff function are improved by adding the GWM scenarios. This approach can identify the GWC standard and Pareto optimal solution in different GWM scenarios, thereby optimizing the spatial allocation of blue and green water in the river basin and coordinating conflicts of interest between the upstream and downstream. (b) The average Pareto optimal payoffs of the XRB are increased by 4390 million CNY/year under different GWM and GWC scenarios compared to the baseline scenario, and the average GWC standard is 2.41 CNY/m3 or 1305.98 CNY/hm2. The case study indicates that the socioeconomic and ecological benefits for the whole XRB are expected to significantly improve under this framework. (c) Three aspects of managing water resources and conflict of interest issues noted during the study include “broadening water sources”, “saving water resources” and “coordinating water conflict”. Green water resources are an important component in broadening water sources; green water management provides a basic measurement tool for saving water resources; and green water compensation based on game theory offers a possible way to coordinate water conflicts and should be given more attention. In general, the PGWES framework provides a referenced methodology for the efficient development and equitable allocation of blue and green water resources in the river basin; furthermore, this study provides a scientific basis for the theory and methods of PWES, thus enriching this field of research.