Eco-compensation Mechanism Research Articles

Evolution of stakeholder behavior strategies in the water quantity eco-compensation mechanism of water use coordination inside and outside the river

Eco-compensation is an important means to implement the rights and responsibilities of ecological protection and alleviate the water conflicts inside and outside the river. Previous studies focused on water conflicts among users, overlooking the government's regulatory role in the eco-compensation mechanism and the coordinating function of water transfer compensation fees among users. This study constructed a tripartite evolutionary game model involving government regulatory agencies (GRA), in-channel ecological environment water demanders (EEWD), and off-channel socio-economic water users (SEWU). The evolutionary stability strategies (ESS) of the GRA, EEWD, and SEWU and the evolutionary trend of the tripartite system were analyzed using the finite rationality evolutionary game model, and the sensitivity analysis of the influencing factors was conducted using the eigenvalues of the Jacobi matrix and numerical simulation. Taking the Bai River Basin in Nanyang, China, as the case study, the results showed that the GRA's rewards and penalties were controlled within a reasonable range can promote the enthusiasm of the participating subjects in the water quantity compensation mechanism; water quantity compensation standard for the SEWU was an important indicator for the smooth implementation of the compensation mechanism, the loss coefficient and the overall ecological benefit allocation coefficient of the EEWD will influence the formulation of water quantity compensation standards. This suggested that the GRA should enhance the management of the eco-compensation-related policies and laws and regulations, limit the SEWU's eco-compensation standard, and improve the net benefit of EEWD, to achieve the optimal eco-compensation strategy of ''supervision, protection, compensation''. The research results provide a reference value for the formulation of the water quantity eco-compensation mechanism for water use coordination inside and outside the river.

Heading towards carbon neutrality: how do marine carbon sinks serve as important handle for promoting marine ecological civilization construction?

As an efficient long-term carbon sink, marine carbon sinks and the associated carbon sink effects, technology, accounting and trading market construction warrant investigation across various disciplines. However, information on the interrelationships and their development over time with respect to the research conducted in China is limited, affecting the ability to drive research directions and optimize continued advancement in this field. Therefore, in this study, we aimed to understand the current situation of marine carbon sink research in China to promote a deeper level of scientific development based on the research literature related to marine blue carbon sinks in the core databases of the China National Knowledge Internet (CNKI) and Web of Science (WOS). We used bibliometric tools in the Citespace software to quantitatively compare and analyse the main characteristics of marine blue carbon sink research including publication volume, time, journals, authors and institutions. We also explored the popular research topics, frontier areas, and theme evolution trends through keyword clustering and emergent and co-occurring knowledge maps. The key recommended research directions for ocean carbon sinks are: (1) to promote the unified carbon sink market research of land and sea integration through multidisciplinary and cross-disciplinary research; (2) to achieve new breakthroughs in ocean carbon sinks with the support of coastal wetlands and seawater offshore aquaculture environments; (3) to explore the protection provided by ocean carbon sinks with a comprehensive eco-compensation mechanism; (4) to improve the application of marine carbon sinks by taking the theory and technological innovation research related to marine carbon sinks as the guide. Ultimately, our work helps characterise the current situation of marine carbon sink research, promote the research in this field to a deeper level of development and provide reference for subsequent scholars to carry out related research.

Application of eco-compensation to control transboundary water pollution in water diversion projects: The case of the Heihe River transfer project in China

Controlling transboundary water pollution is particularly crucial for the sustainable development of diversion basins, while eco-compensation is an essential incentive for multistakeholder transboundary water pollution control. Considering the dynamics of the various actors' pollution control behavior in the Heihe River water transfer project and utilizing differential game theory, we construct a baseline strategy, a horizontal eco-compensation strategy, and an incentive coordination strategy under scenarios with and without authority incentives. The corresponding equilibrium solutions are then determined, and comparisons are made between the payoffs of the players in the six different structures, thus defining the optimal scenario for the different programs. In the case of the largest ecological water transfer project of the Heihe River in Northwest China, according to the research findings, (1) when eco-compensation is funded through a single source, incentive coordination scenarios can contribute effectively to water pollution control instituted by the main participants in water diversion projects; when multiple financing sources are available, horizontal ecological compensation scenarios are more compatible with the individual interests of local municipalities to improve the water quality environment. (2) Water-receiving cities voluntarily eco-compensate for water-supplying cities, and this incentive structure for eco-compensation facilitates a significant improvement in the effectiveness of water pollution control and therefore the harmonious promotion of sustainable economic and environmental development in eco-fragile areas. (3) Water transfer projects, for which the two participants are at widely.different levels of development and the environment is inherently fragile, can facilitate, via an eco-compensation mechanism that combines horizontal and vertical scenarios, sustainable development-oriented policies for eco-compensation systems in which the authority participates as a third-party game player. The research supports the establishment of policies for the governance of the transboundary water diversion project basins to address conflicts in water pollution management.

Can policy achieve environmental fairness and environmental improvement? Evidence from the Xin’an River project in China

In a river basin across regions, is environmental improvement in downstream areas based on actions that negatively impact economic development and social welfare in upstream areas? This paper takes the pilot of Transverse Eco-compensation Mechanism (TECM) in Xin'an River of China as a quasi-natural experiment and uses the difference-in-differences strategy to estimate the impact of TECM on environmental inequality. We find that the government’s environmental policy may lead to more environmental inequality，which is often overlooked. Our results show that the pilot of TECM depresses the upstream economy, reduces upstream resident income, especially rural residents, and widens the regional income gap between the upstream and downstream. Heterogeneous tests confirm our findings. Our mechanism test shows that the industries’ shutting down and relocation are the main driving forces for the regional environmental inequality in the short term. Therefore, in implementing future TECM, the upstream government needs to pay attention to the economic slowdown and the subsequent unemployment and resident welfare loss. The central and downstream governments should help the upstream regions upgrade the industrial structure, rather than just pay compensation funds, thereby reducing the resulting environmental inequality. Our findings have important policy implications for the treatment of trans-regional river pollution.

Ecological compensation mechanism under the double control of water quality and quantity in the Bai River Basin

Watershed ecological compensation is an effective economic policy measure for water ecology conservation and water environment management. This study constructed an eco-compensation mechanism under the double control of water quality and quantity, which consisted of the water quality control module, the water quantity control module, and the double control compensation value module. The pollution loss water quantity and the river habitat compensation water quantity were calculated, and the water quality achievement or excess and water quantity surplus or deficit were identified to divide the multi-scenario compensation mode and obtain the double control compensation value. The Bai River Basin in Nanyang, China, was selected as the case study, and the double control compensation value of the three counties in the basin was calculated from 2015 to 2018. The results showed that the water quantity compensation value of all counties was higher than the water quality compensation value, indicating that the water quantity has a greater impact on the water environment compared with water quality, and the ecological water demand of rivers needs to be guaranteed while strengthening water pollution treatment. The compensation mode all belonged to the double control mode. The double-control compensation mechanism had a distinct advantage over the single-control compensation, indicating that water quality and quantity should be considered in the compensation programs to maintain healthy ecological conditions in the water supply. The research results provide ideas for the quantification of eco-compensation and the formulation of long-term ecological protection mechanisms.

Study on Influencing Factors of Willingness to Pay for Tourism Eco-Compensation in Danxiashan National Geopark

The detrimental effects of tourism on ecosystems are becoming increasingly clear as industries develop rapidly. The relationship between tourism growth and environmental preservation can be balanced through a tourism eco-compensation mechanism, which is a key institutional mechanism. The academic community has become a popular scientific topic. Developing a tourism eco-compensation mechanism can be based on knowledge of the public’s willingness to pay for it and the variables that influence it. This paper is based on the theory of planned behaviour and uses the Danxiashan National Geopark as an example. A questionnaire was used to gather data for this study. SPSS (version 26.0) was then used to analyse the data and determine how variables affect the WTP for ecotourism work. The findings demonstrate that environmental values and sensitivity are the key factors influencing the willingness to pay for tourism eco-compensation. This study concludes by offering solutions and ideas for building an eco-compensation mechanism for tourism.

A Bi-level optimization approach to reduce the pollution burden of lake water with ecological compensation

Lake Ecological Compensation (LEC) mechanism is a localized approach of payment for ecosystem services to address the conflict between economic development and ecological conservation. However, how to motivate regional stakeholders to participate in water quality protection is a challenge. Based on the traditional Coase Theorem, vertical eco-compensation mechanism has been proposed to solve pollution of lake basin. The quantification of LEC is characterized by key water quality indicators (NH3-N and COD) in this paper. Integrating LEC mechanism with the ecological-economic model, this paper proposes a bi-level optimization framework for the conservation of the lake water environment. Referring to Coase’s theory, the leader’s goal is to distribute waste load permits equally to sub-regions while followers aim to minimize environmental costs. The appropriate application of this method to Taihu Basin demonstrates its efficiency and practicality. The LEC mechanism with different scenarios is analyzed and suggestions for lake water quality are made. The results show that: (1) Considering equitable principle, the new COD allocation scheme has reduced the total amount of emissions by 17% compared to the data in 2020, and the total amount of NH3-N has decreased by 16%. (2) With the cooperation of lake basin institutions, the LEC mechanism is proved to be an effective measure in promoting the conservation of the lake water environment. (3) The spillover effect of environmental and ecological policies in lake water indicates the need to upgrade industrial structure. This paper proposes to provide a more reliable the conservation of the lake water environment paradigm.

Configurations of Market-Oriented Tourism Ecological Compensation: A csQCA Approach

ABSTRACT This paper explores the antecedent configurations leading to high or non-high marketization of tourism eco-compensation mechanisms. A configurational model was established to precisely understand the causal complex mechanism of institutional factors that drive tourism ecological compensation marketization. The clear set of qualitative comparative analysis (csQCA) with multivariate interactions was applied. Five configurations were identified for the high marketization level and two for the non-high marketization level. The results confirmed that determining natural resource property rights is the premise of the marketized mechanism. It is only on this basis that the value of eco-products can be achieved and that eco-incentives play an effective role. Moreover, government regulation is the fundamental guarantee in the multi-game process. This configurational-based model reveals the causal asymmetry mechanism between a high marketization level and two configurations for a non-high marketization level. This paper suggests that a favorable combination of the government’s role as a supporter and ecological incentives is the main driving force to enhance the marketability of tourism eco-compensation mechanisms.

Transboundary watershed pollution control analysis for pollution abatement and ecological compensation.

The effect of watershed environmental management is closely related to the cooperation modes of upstream and downstream regions pollution control, but the existing literature rarely considers it. Additionally, based on the cumulative and cross-border impacts of pollution discharge in different regions, it is appropriate to use dynamic game theory to study pollution control problems. Therefore, this paper develops a dynamic multi game model to analyze the pollution control game behavior between the upstream and downstream regions along the basin in three scenarios: non-cooperation, pollution abatement cooperation, and ecological compensation. By using the optimal control method, we get the dynamic equilibrium strategies of the government and enterprises and pollution stock trajectories under different cooperation modes. The results show that pollution abatement cooperation can improve the environment, but may not improve social welfare; the eco-compensation mechanism is not always conducive to the improvement of the environment and welfare of the basin, and the effective conditions of implementing ecological compensation is put forward. In addition, we also analyzed the impact of consumer preferences, pollution treatment efficiency, and other parameters on governments and enterprises decision-making and the social welfare. These conclusions provide a theoretical basis for cooperative governance scheme for transboundary pollution in river basin.

Can Transverse Eco-compensation Mechanism Correct Resource Misallocation in Watershed Environmental Governance? A Cost-benefit Analysis of the Pilot Project of Xin’an River in China

Can Transverse Eco-compensation Mechanism Correct Resource Misallocation in Watershed Environmental Governance? A Cost-benefit Analysis of the Pilot Project of Xin’an River in China

Eco-compensation in China: achievement, experience, and improvement.

Payments for ecosystem services (PES) provide innovative solutions for global environmental governance. China, the largest developing country, always faces severe ecological and environmental problems. China created an eco-compensation mechanism that combines the PES mechanism with the government's standardized management, which has achieved remarkable results. Government-led, social participation, and market-oriented operation are its main characteristics. More importantly, the mechanism helps China achieve its anti-poverty goals. Part of its experiences has been transformed into formal institutions, i.e., farmland fallow and rotation policies. However, some problems have also plagued further development, such as the lack of environmental property rights, the single source of funds, and the shortage of standardized ecological value assessment technology. We suggest that it is necessary to improve the stability of China's eco-compensation mechanism. The achievement of China's eco-compensation mechanism provides helpful guidance for other developing countries. For example, it is enhancing the role of government administrative power and the flexibility of the system through the policy "sandbox," i.e., the policy pilot, encouraging the participation of multi-stakeholder groups, and so on. Last but most important, the policy and institutions must be closely integrated with the nation's state for it to be sustainable.

Watershed Eco-Compensation Mechanism in China: Policies, Practices and Recommendations

Watershed eco-compensation (WEC) is considered a significant environmental policy instrument for watershed ecological protection and management. However, in the legislation and practice of eco-compensation in China, the development of the WEC mechanism is still in the initial stages. In this paper, the institutional opportunities and challenges of WEC are analyzed from the existing policies, laws, and economical instruments. Theoretically, WEC in China has seen a combination of punitive-based “Watershed Ecological Damage Compensation (WEDC)” and incentive-based “Watershed Ecological Protective Compensation (WEPC)”. Through a comparative analysis of domestic and foreign watershed compensation practices, the results demonstrate that most of China’s WEC projects have an insufficient legal basis, a single compensatory subject, insufficient compensation funds, and an imperfect market-oriented compensation mechanism. To improve watershed eco-compensation in China, it is recommended to strengthen legislation, select diversified eco-compensation approaches, and establish a market-based and systematic eco-compensation mechanism for watersheds.

Optimal Allocation of Water Resources and Eco-Compensation Mechanism Model Based on the Interval-Fuzzy Two-Stage Stochastic Programming Method for Tingjiang River.

In this work, based on the upper line of water resources utilization and the bottom line of water environmental quality of “Three Lines, Single Project”, a fuzzy optimization method was introduced into the Tingjiang River water resources optimal allocation and eco-compensation mechanism model, which is based on the interval two-stage (ITS) stochastic programming method. In addition, a Tingjiang River water resources allocation and eco-compensation mechanism model based on the interval fuzzy two-stage (IFTS) optimization method was also constructed. The objective functions of both models were to maximize the economic benefits of the Tingjiang River. The available water resources in the basin, the water environmental quality requirements, and regional development requirements were used as constraints, and under the five hydrological scenarios of extreme dryness, dryness, normal flow, abundance, and extreme abundance, the water resources allocation plan of various sectors (industry, municipal, agriculture, and ecology) in the Tingjiang River was optimized, and an eco-compensation mechanism was developed. In this work, the uncertainty of the maximum available water resources in each region and the whole basin was considered. If the maximum available water resources were too high, it would lead to a large waste of water resources, whereas if the maximum available water resources were too low, regional economic development would be limited. Therefore, the above two parameters were set as fuzzy parameters in the optimization model construction in this work. The simulation results from the IFTS model showed that the amount of water available in the river basin directly affects the water usage by various departments, thereby affecting the economic benefits of the river basin and the amount of eco-compensation paid by the downstream areas. The average economic benefit of the Tingjiang River after the optimization of the IFTS model simulation was [3868.51, 5748.99] × 108 CNY, which is an increase of [1.67%, 51.9%] compared to the economic benefit of the basin announced by the government in 2018. Compared to the ITS model, the economic benefit interval of the five hydrological scenarios of extreme dryness, dryness, normal flow, abundance, and extreme abundance was reduced by 28.54%, 44.9%, 31.49%, 40.37%, and 36.43%, respectively, which can improve the economic benefits of the basin and provide more accurate decision-making schemes. In addition, the IFTS simulation showed that the eco-compensation quota paid by downstream Guangdong Province to upstream Fujian Province is [28,116.4, 30,738.6] × 104 CNY, which is a reduction of [8461.404, 110,836] × 104 CNY compared to the 2018 compensation scheme of the government. Compared to the ITS model, the range of eco-compensation values was observed to increase by 9.94%, 54.81%, 15.85%, 50.31%, and 82.90%, respectively, under the five hydrological scenarios, which reduces the burden of ecological expenditure downstream and provides a broader decision-making space for decision-makers and thus enables improved decision-making efficiency. At the same time, after the optimization of the IFTS model, the additional water consumption of the second stage of the Tingjiang River during the extremely dry year decreased by 62.11% compared to the results of the ITS model. The additional water consumption of the industrial sector decreased by 68.39%, the municipal sector decreased by 59.27%, and in the first phase of water resources allocation for 14 districts and counties in the Tingjiang River, industrial and municipal sectors are the main two sectors. After introducing the fuzzy method into the IFTS model, the difference in the water consumption by these two sectors in the basin under different hydrological scenarios can be alleviated, and the waste of water resources caused by too low water allocation or excessive water allocation can be avoided. The national and local (the downstream region) eco-compensation quotas can be indirectly reduced, and the risk of water resources allocation and eco-compensation decision-making in the basin can be effectively reduced.

Analysis on asymptotic stabilization of eco-compensation program for forest ecotourism stakeholders.

Nowadays, many countries in the world have paid attention to the issue of improving the eco-compensation program for their forest ecotourism systems aiming to successfully drive forest ecosystem protection. However, an operable eco-compensation mechanism must give a fair and balanced consideration to each involved party's pursuits which naturally encompass benefits and responsibilities. In this study, based on the evolutionary game theory, we developed a set of mathematical models to evaluate the attitudes and preferences toward the eco-compensation programs in which the three primary stakeholders are involved including farmers, local government, and business groups in order to investigate whether the stakeholders' asymptotic stabilization strategy can be discovered. In addition, the simulation analysis shows the sensitivity characteristics and evolution process of stakeholders influenced by multiple influencing factors. The results show that the threshold effect of these factors turns out to be an important basis in formulating sustainable development schemes for the eco-compensation program in the forest ecotourism system. Furthermore, the simulation analysis also shows that the initial state of stakeholders affects the rate of convergence to the asymptotic stability. Accordingly, we put forward the three-stage strategy and address policy implications on the operable eco-compensation program development of the forest ecotourism system.

Theoretical framework for eco-compensation to national parks in China

At present, the establishment of a natural protected area system with national parks as the main subject has attracted widespread attention from all corners of Chinese society. Eco-compensation mechanism is an important institutional guarantee for the construction of China’s system for natural protected areas. However, the current research over eco-compensation policies for China’s national parks and relevant practices are far from systematic and lacking of top-level design. Based on the current research and practices of eco-compensation to national parks (NPEC) at home and abroad, this paper has considered China’s requirements for the pilot areas in the national park system, proposed a theoretical framework on the basis of clarifying the connotation of eco-compensation, and thus formulated four key techniques. The techniques include identifying compensation subjects, formulating compensation methods, determining compensation standards, and expanding financing channels, with a view to providing a top-level design for the establishment of an NPEC mechanism in China.

Inequality and collaboration in north China urban agglomeration: Evidence from embodied cultivated land in Jing-Jin-Ji's interregional trade

An urban agglomeration is a highly connected city group, which is nested in complex trading networks. Ignoring the intercity connections and regional inequality may lead to the unsustainability of the urban agglomeration. The misuse and overuse of cultivated land resources are threatening environmental sustainability and causing global climate change. Facing the inequality and environment pressures in the urban agglomeration, the cultivated land resource reallocation within the complex urban agglomeration trading network should be systematically explored. This study analyzes the virtual cultivated land flows of the Jing-Jin-Ji (JJJ) region embodied in China's interregional trade network using a multiregional input-output model. Results show that the average virtual cultivated land intensity of the JJJ region is 1.59 ha/million yuan, which is below the national average. The JJJ region has 10.74 million ha of embodied cultivated land in consumption, accounting for 7.82% of the country's total amount. JJJ region is an import-oriented region and it receives virtual cultivated land from surrounding underdeveloped regions, such as Heilongjiang and Inner Mongolia. Beijing and Tianjin are typical net importers of virtual cultivated land, while Zhangjiakou, Xingtai, Hengshui, Baoding, and Cangzhou are net exporters in the interior of the JJJ region. This study could provide a systematical perspective and data supporting system for formulating the sustainable cultivated land use policies and collaborated development policies in the JJJ region to mitigate regional inequality. Policy suggestions concerning the eco-compensation mechanism, collaborative innovation mode, and uniform management platform in JJJ are given.

A Watershed-Based Water Environment Eco-compensation Mechanism: a Case Study of Taihu Lake Basin, China

In 2008, a simple punitive eco-compensation method was implemented in the Taihu pilot region, China. However, due to the use of a flawed formula and weak compensation criterion the payments were considered unsuitable. To improve the scheme, the following issues were considered: determination of compensation criterion; compensation when water quality is acceptable; consideration of reciprocating flow; control of the errors in pollutant fluxes due to the non-synchronization of river flow and water quality data. Two alternative ways to calculate eco-compensation payments were assessed for a case study in 2013: a payment based on the “Water quality exceedance rate (WQER) method” was found to be 172 million CNY (24.9 million USD). This method avoided errors caused by the pollutant flux and considered the situations of reciprocating flow and acceptable water quality; and the “Pollutant treatment cost (PTC) method” was considered suitable for immediate implementation, although the payment was higher at 245 million CNY (35.4 million USD). The determination of compensation criterion using this method had a scientific basis, but it required perfect and reliable monitoring data. If these conditions are met, the method was considered suitable for future implementation.

Residents’ willingness to pay for ecosystem services and its influencing factors: A study of the Xin’an River basin

Eco-compensation is a type of institutional arrangement that plays a key role in maintaining ecosystem service functions. Thus, to solve the issues regarding ecological environmental protection in the Xin’an River basin (XARB), the eco-compensation project of the XARB has been implemented since 2012. However, as direct participants in the eco-compensation project, local residents’ willingness to pay (WTP) for eco-compensation directly affects ecological safety and sustainable development in the XARB. Therefore, this study primarily explores residents’ WTP and its influencing factors, thereby measuring the ecosystem service function value in the XARB. A total of 2217 randomly selected local residents participated in a face-to-face questionnaire-based survey. Based on field research data, this study employed the contingent valuation method and Tobit model to analyze residents’ WTP and the factors affecting it in the XARB. The results suggest that 84.21% of residents intended to pay. Residents’ WTP in the whole XARB, Huangshan city, Xuancheng city, and Hangzhou city were 20.04, 20.60, 13.14, and 22.48 USD per year, respectively, showing significant spatial heterogeneity. The ecosystem service function value in the XARB was 52.72 million USD. Crucial factors influencing WTP were government employees, individual households, and government staff as family members. Thus, it is necessary to create a diversified river basin eco-compensation mechanism to formulate an eco-compensation standard for different areas.

Compensation mechanism for damage from ecosystem services deterioration: constitutive characteristic

A growing attention of researchers and politicians to the processes of formation and implementation of the environmental compensation mechanism is fixed in the last decade. Environmental compensation has been viewed as a national or regional regulatory mechanism that contributes to balancing the goal of environmental conservation with the goals of sustainable socio-economic development. The literature on the ecosystem service has developed the terminology of the eco-compensation mechanism. Still, they do not define its functional structure within its framework, in particular, a compensation mechanism for damage from the deterioration of ecosystem services. We characterised this crucial but relatively understudied component of the eco-compensation mechanism and suggested a general formula for determining the magnitude of compensatory payments for damages from degradation/destruction of ecosystem services, which will help to improve the implementation of compensatory payments in decision-making as well as drive green economic activity.

Industrial water pollution and transboundary eco-compensation: analyzing the case of Songhua River Basin, China.

As eco-compensation is considered an effective economic instrument for controlling the industrial water pollution in transboundary basin, this study aims to explore a transboundary eco-compensation mechanism for Songhua River Basin that is one of the seven major drainage basins in China. Using a panel dataset of eleven cities in this basin tracked from 1992 to 2016, we empirically examined the environmental Kuznets curve (EKC) hypothesis by analyzing the relationship between economic development and industrial water pollution. Then, we developed two econometric models to quantify the wastewater discharge allowance and eco-compensation of investigated cities, respectively. The results specifically reveal the inverted U-curve effects of GRP (gross regional product) on industrial wastewater discharge, which displays an evidence of EKC in the field of transboundary water pollution in China. Moreover, our results verify the polluter pays principle that polluter should be responsible for its pollution behavior through paying of eco-compensation. Our results further interpret that the emissions trading program can help protect the ecosystem by allowing the wastewater discharge allowance to trading market.