Major Problems and Countermeasures for the Establishment of Ecological Compensation Systems for National Key Ecological Function Areas

Abstract

At the end of the 1990s China started to construct an ecological compensation system for national key ecological function areas. An eco-compensation system focusing on the “Transfer Payment of National Key Ecological Function Areas” has been established. The current eco-compensation system has played a positive role in improving the ecological environment of national key ecological function areas; but the ecological effect is weakening due to existing problems in the eco-compensation system such as unreasonable calculation of compensation standards, poor expression of rights and interests of stakeholders, simple sources of capital and modes of compensation. For better development, the eco-compensation system should be improved by (i) adhering to the combination of vertical compensation (oriented) and horizontal compensation (auxiliary) on the whole and establishing a transfer payment system of eco-compensation at national scale; (ii) defining the compensation standard according to ecological protection costs, development opportunity costs and ecological service values and adding indicators that reflect economic green transformation to evaluate compensation effects; (iii) gradually building a utilization system of eco-compensation funds in which multi-stakeholders participate and establishing a green development-oriented system to evaluate the performance of local governments; and (iv) cultivating a new business pattern where ecological services are the product, to grow the ecological service industry.