Study on Development Process and Mechanism of Ecological Compensation in Beijing and Hebei Province

Abstract

The problem of water resources has become a bottle- neck for the sustainable development of Beijing and Hebei Province (the two regions together are called for short). It is imperative to establish an effective and equitable water resources ecological compensation (eco-compensation) mecha- nism. The three stages of water resources eco-compensation are expatiated here namely the eco-compensation missing stage, eco- compensation start stage and the eco-compensation development stage. Through the establishment of eco-compensation game mod- el based on the game theory, the reasons of the formation for the three stages were analyzed, as well as the conversion conditions from non-cooperative game to cooperative game among the related stakeholders including the central government, the water recipi- ent government and the water source government. Furthermore, this study pointed out that the water resources eco-compensation in Jingji Region was not established based on the institution, but formed and developed in coping with the challenges of water cri- sis. However, institution construction is quite essential in game process for the water recipient government and the water source government. Finally recommendations in four areas including le- galization of eco-compensation mechanism, setting up compensa- tion standards, leading industrial upgrading and developing related incentives and constraints were concluded.