Games between stakeholders and the payment for ecological services: evidence from the Wuxijiang River reservoir area in China

Lin Shu

doi:10.7717/peerj.4475

Abstract

A gambling or “game” phenomenon can be observed in the complex relationship between sources and receptors of ecological compensation among multiple stakeholders. This paper investigates the problem of gambling to determine payment amounts, and details a method to estimate the ecological compensation amount related to water resources in the Wuxijiang River reservoir area in China. Public statistics and first-hand data obtained from a field investigation were used as data sources. Estimation of the source and receptor amount of ecological compensation relevant to the water resource being investigated was achieved using the contingent valuation method (CVM). The ecological compensation object and its benefit and gambling for the Wuxijiang River water source area are also analyzed in this paper. According to the results of a CVM survey, the ecological compensation standard for the Wuxijiang River was determined by the CVM, and the amount of compensation was estimated. Fifteen blocks downstream of the Wuxijiang River and 12 blocks in the water source area were used as samples to administer a survey that estimated the willingness to pay (WTP) and the willingness to accept (WTA) the ecological compensation of Wuxijiang River for both nonparametric and parametric estimation. Finally, the theoretical value of the ecological compensation amount was estimated. Without taking other factors into account, the WTP of residents in the Wuxi River water source was 297.48 yuan per year, while the WTAs were 3864.48 yuan per year. The theoretical standard of ecological compensation is 2294.39–2993.81 yuan per year. Under the parameter estimation of other factors, the WTP of residents in the Wuxi River water source area was 528.72 yuan per year, while the WTA was 1514.04 yuan per year. The theoretical standard of ecological compensation is 4076.25–5434.99 yuan per year. The main factors influencing the WTP ecological compensation in the Wuxi River basin are annual income and age. The main factors affecting WTA are gender and attention to the environment, age, marital status, local birth, and location in the main village.

Highlights

Environmental services such as natural purification of water, erosion control, and habitat for wildlife are public goods that have value to society but are difficult to assign a market value to
Using the Wuxijiang River in China as an example, this study investigates the residents’ willingness to pay (WTP) and the willingness to accept (WTA) as analyzed using the contingent valuation method (CVM) (Zhang et al, 2002; Zhang & Zhao, 2007)
We used the CVM to estimate the amount of compensation for subjects of ecological water supply impacts for the Wuxijiang River watershed

Summary

Introduction

Environmental services such as natural purification of water, erosion control, and habitat for wildlife are public goods that have value to society but are difficult to assign a market value to. Benefits provided by natural resources can be expressed as values to human well-being (Arrow et al, 1995; Costanza et al, 1997; Wackernagel et al, 1999; Ouyang, Wang & Miao, 1999; Daily et al, 2000; de Groot, Wilson & Boumans, 2002; Xu, Liu & Chang, 2013). Ecological compensation is the institutional arrangement for regulating and protecting the interests of stakeholders based on the protection and sustainable utilization of environmental services (Jin, Li & Zuo, 2007). Compared with most countries in the world, the disparate systems and mechanisms in China make the relationship between the stakeholders of the ecological compensation of water resources more complex, with intertwined relationships. Due to the complexity regarding providing ecological compensation of water sources, one cannot implement ecological compensation according to the general principle of “whoever pollutes will pay.” Based on the theory of externality (Shen & He, 2002), compensation should start from an analysis of the beneficiaries of the watershed to identify who will compensate whom (Shen & Yang, 2004; Shen & Gao, 2009)

Methods

Discussion

Conclusion