A new multiscale collection and allocation framework for national ecological compensation funds based on ecosystem service supply and demand dynamics

Abstract

To date, a clear model between ecosystem services (ES) and their beneficiaries has not been established, which reduces the possibilities of the implementation and effective use of ecological compensation. In this study, we constructed a “top-down” and “bottom-up” bidirectional framework for ecological compensation fund (ECFs) collection and allocation, by taking into account the supply and demand of ES. This framework focuses on how to (i) collect ECFs from consumers and (ii) distribute ECFs equitably to suppliers, (iii) and utilize the net ECFs of each administrative unit to improve the efficiency. We analyzed the ES and ECFs in 31 provinces, 333 prefecture-level cities, and 2844 districts (counties) in China from 2000 to 2020, and further classified the relationship between gross domestic product (GDP) and ECFs. Our research revealed that ES and ECFs exhibited a consistent upward trend over time, but displayed significant disparities and inconsistencies across different geographical areas. This analysis identified four distinct relationship modes between ECFs and GDP, serving as a valuable foundation for promoting environmentally sustainable development. The proposed framework acts as a “bridge” connecting the ES and stakeholders through national ECFs, helps address the challenges in ecological compensation financing, and enhances the clarity of the collection and allocation process. We believe that the implementation of this ECF framework, with the support of ecosystem management activities, could provide the basis for Green transformation development in China and beyond.