Ecological Compensation Mechanism Research Articles

Can ecological compensation reduce air pollution? New evidence from resource-based cities in China

ABSTRACT China has made great efforts to establish an ecological compensation mechanism, but there lacks empirical evidence on whether this scheme effectively reduces air pollution. To test the effectiveness of air quality ecological compensation (AQEC) on air pollution control, this study considers 114 resource-based cities in China and uses a multi-period difference-in-difference (DID) model for empirical analysis. The finding shows that the AQEC policy significantly reduces the concentration of air pollutants by promoting air pollution prevention and local authority enthusiasm for pollution abatement, resulting in an average annual decrease in PM2.5 concentrations of approximately 3.9 µg/m3 in the pilot cities. The AQEC policy of resource-based cities in eastern and northern China, and those with less financial pressure have greater inhibitory effects on air pollution. The study recommends establishing long-term protection mechanisms and implementing differentiated policies focused on green technological innovation and financial autonomy.

Construction and Change Analysis of Water Ecosystem Service Flow Networks in the Xiangjiang River Basin (XRB)

Clearing and successfully characterizing ecosystem service flow paths has become a key bottleneck restricting in-depth research on the supply and demand relationships of ecosystem services. At present, although some explorations have been performed using water ecosystem services as a pioneer, the nature of its network and the fact that ecological base flow needs to be eliminated have been ignored. This study used InVEST and network models to consider ecological base flow, quantifying the supply, demand, and flow paths of freshwater ecosystem services in the Xiangjiang River Basin. The results showed that the overall distribution of the water supply in the Xiangjiang River Basin from 2000 to 2020 shows a pattern of higher supply in the south and lower supply in the north. The distribution of water demand shows higher levels in the north and lower levels in the south. The network density remains at its maximum level. The results of this study have provided a scientific basis for water resource management in river basins and improving ecological compensation mechanisms.

The Temporal and Spatial Evolution Characteristics of the Ecosystem Service Value and Conversion Rate in China’s Key State-Owned Forest Regions

To achieve a sustainable development path that harmonizes ecological and economic considerations, China has advocated the “two mountains” concept: “lucid waters and lush mountains are invaluable assets”. This idea posits that those who protect the environment can economically benefit by selling pristine landscapes and utilizing rich ecological resources. This paper use “the equivalence factor method” to calculate ecological benefits, introduces a technical measure—the conversion rate of ecosystem service value—and analyzes its temporal and spatial evolution from 2003 to 2020 in the operational areas of 87 state-owned forestry enterprises in Northeast China. The findings show: (1) a significant improvement in ecosystem-service quality, with its value increasing from 404.7 to 850.2 billion CNY between 2003 and 2020. The restoration of the ecological environment in China’s KSFR provides a foundation for economic and social development. (2) A decrease in the economic gains derived by operators from developing protected ecosystems, with the most significant decline observed in economic benefits generated from the supply product, including timber harvesting. However, the industrial structure in KSFR shifted from being dominated by timber production to diversified development, with non-timber forest resources becoming an important part of regional economic growth. (3) Significant potential for realizing the value of ecosystem services, evidenced by an increasing trend in the conversion rates of cultural, regulatory, and supporting services. These findings underscore the effectiveness of China’s natural forest protection and restoration policies in optimizing forest ecology and realizing the “two mountains” concept through appropriate market transactions and ecological compensation mechanisms.

Influencing factors and the establishment of a basin ecological compensation mechanism from the perspective of water conservation: A case study of the upper Yangtze River in China

Under the dual impacts of global environmental degradation and human activities, ecosystem service functions have steadily declined. Ecological compensation has emerged as an important direct and efficient motivator for countries to implement ecosystem protection and restoration. At present, few studies have considered ways in which to establish ecological compensation mechanisms or have analyze the related influencing factors. The ecological compensation threshold is in the conceptual analysis stage; thus, quantitative simulation studies are lacking. In this study, the relationship between water conservation and ecological compensation was analyzed. Scenario simulation and the minimum data method were combined to establish an ecological compensation mechanism for the upper Yangtze River (UYR) basin, and the ecological compensation thresholds were quantitatively assessed. Finally, the factors influencing ecological compensation and the interactions among the factors were analyzed using an optimal parameters-based geographical detector. The results showed that (1) the different land use scenarios for the UYR resulted in notable water conservation differences, with greater differences under the fallow-to-forest scenario than under the fallow-to-grass scenario and existing scenario. (2) Furthermore, 27 subbasins were suitable for the implementation of the fallow-to-forest scenario, with an average ecological compensation threshold of 46.48 yuan/m3 and an average new water conservation amount of 22.02 × 108 m3; and 21 subbasins were suitable for the implementation of the fallow-to-grass scenario, with an average ecological compensation threshold of 107.87 yuan/m3 and an average new water conservation amount of 3.72 × 108 m3. (3) The drivers with the highest and lowest impacts on the ecological compensation thresholds were the grain yield and NDVI, respectively, while their impacts on ecological compensation were significantly enhanced by interactions among the influencing factors. In this study, the differences in ecological compensation standards were compared at the basin scale and administrative scale in different regions worldwide. Moreover, the need to establish a basin-scale ecological compensation mechanism as an effective reference for promoting the implementation and development of ecological compensation policies was explored.

Sector-Level Inter-Provincial Virtual Water Trade in China: Implications for Regional Water Stress

China faces severe water resource shortages due to the uneven distribution of water resources and ever-increasing water demand driven by rapid industrialization and urbanization. The virtual water trade (VWT) is a potential solution to conserve water resources by transferring water from water-abundant/water-productive regions to water-scarce/less water-productive regions. Based on the inter-provincial input-output model, the provincial VWT of China was estimated at the sectoral level. The relationship of VWT with water resources in 30 provinces was analyzed in relation to the water stress index (WSI). It was found that (1) total inter-provincial VW trade showed a downward trend during the study period, with 363.91 km3 in 2002, 283.72 km3 in 2007, and 285.23 km3 in 2012. Overall, the primary industry dominated the VWT for most provinces. (2) China’s virtual water flowed from the relatively underdeveloped central and western regions to the east with a relatively developed economy from the inter-provincial level. This trend became increasingly prominent. (3) In many instances, VW was transferred from water-poor to water-rich areas. These results imply that China needs to improve its water use efficiency and optimize its regional industrial structure. Additionally, establishing an ecological compensation mechanism is considered a valuable measure for China to alleviate regional water resource pressure.

Research on the Environmental Protection Effect of Local Ecological Transfer Payment

Local ecological transfer payment refers to a policy tool used by the central government to provide financial support to local governments according to the ecological compensation mechanism for ecological protection. With the increasingly serious ecological and environmental problems in China, local ecological transfer payment has become an important way to protect the ecological environment and achieve sustainable development. The purpose of this paper is to explore the effect of local ecological transfer payment on environmental protection and analyze its impact on local economy and society.

Construction and Influencing Factors of Voluntary Compensation Subjects for Herders—From the Perspective of Sustainable Utilization of Grassland Resources

The grassland ecological compensation mechanism is a basic guarantee for promoting the sustainable utilization of grassland resources, and the reasonable determination of the compensation subject is the basic premise for the effective operation of the grassland ecological compensation mechanism. At present, grassland ecological compensation is mainly based on government compensation, and the compensation method generally adopted is financial transfer payment with a single source of compensation funds. Therefore, establishing diversified compensation entities is of great significance in expanding the sources of compensation funds. As important users of grassland resources, herders should become the main representatives of grassland ecological compensation according to the principle of “whoever uses, pays”. In this study, based on survey data with respect to pastoral areas in Inner Mongolia, we used a multivariate ordered logistic regression model to empirically analyze the factors influencing the establishment of a voluntary compensation entity for herders. The results of this study showed that (1) the resource endowment factors of the respondents, including livestock inventory, grazing area, and cutting grassland area, have a significant positive impact on the willingness of herdsmen to voluntarily serve as the main representatives of grassland ecological compensation. When each influencing factor increased by one unit, the probability of voluntarily becoming a compensation subject increased by 3.5%, 1.91%, and 1.41%, respectively. (2) The factor of prohibited pasture area in the endowment of herders had a significant negative effect on their willingness to become compensation subjects, which indicates that the larger the prohibited pasture area owned by herders, the lower their grassland utilization rate and the lower their willingness to voluntarily become compensation subjects. (3) Among the cognitive factors of the respondents, “whether they will continue to support the implementation of the grassland compensation policy” had a positive promoting effect on herdsmen voluntarily becoming compensation subjects, showing that the higher the support of herdsmen for the ecological compensation system, the more willing they were to become compensation subjects. This article is based on the perspective of the sustainable utilization of grassland resources and empirically analyzes the influencing factors of herders’ willingness to reduce their number of livestock. Through the voluntary reduction of livestock by herders, a voluntary compensation entity for herders is constructed. Based on the research conclusions, relevant countermeasures and suggestions are proposed, providing a reference for improving grassland ecological compensation policies and promoting the sustainable utilization of grassland resources.

The Dilemmas and Countermeasures of China’s Agricultural Ecological Compensation Mechanism

The Dilemmas and Countermeasures of China’s Agricultural Ecological Compensation Mechanism

The Design of Ecological Compensation for Air Pollution Based on Differential Game

Establishing a scientific ecological compensation mechanism for air pollution is crucial for air protection. This study models the ecological compensation mechanism of the Stackelberg differential game between the local regulator and an enterprise with a competitor by introducing the air quality index and the social welfare benefits of the local regulator. Using the Pontryagin maximum principle, this study obtains dynamic strategies for the local regulator and the enterprise while maximizing the benefits. The evolution of the shadow price is analyzed with the inverse differential equation method. Then, the effects of the shadow price on the optimal dynamic strategies are analyzed using numerical simulation, together with the effects of the introduction of social welfare benefits on the efforts of the local regulator to protect the air environment. The conclusions show that introducing social welfare benefits as an ecological compensation criterion for air pollution promotes air protection by the local regulator.

Research on Constraints and Countermeasures of Forest Carbon Sink Economic Development in Sichuan Province

In response to global climate change, China has made a solemn commitment to achieve carbon peak by 2030 and carbon neutrality by 2060, with the development of carbon sink economy being an important approach to fulfill the dual carbon goals. Sichuan Province, with its abundant forest resources and vast territory, possesses a strong carbon sink capacity, which naturally lends itself to the development of a carbon sink economy. Based on Sichuan Province, this paper analyzes the current situation and challenges of carbon sink economic development, explores the ecological compensation mechanism for carbon sink economy under the dual drivers of ecological protection and economic development, harnesses the ecological functions of carbon sink economy, and contributes to the realization of the dual carbon goals, in line with the concept of “Clear waters and green mountains are invaluable assets”.

Ecological governance of Hainan coastline from the perspective of one health: A case study of the sustainable development of people’s livelihood after the coastline of Qionghai city was repopulated

Purposes It aims to discuss how to effectively carry out the ecological governance of the coastline of Qionghai City, Hainan Province under the concept of One Health [1] to promote the sustainable development of residents’ income and provide practical cases and theoretical references for the ecological governance of the Hainan Coastline. Methods Use field research and random interview methods to obtain relevant data and conduct quantitative analysis. Results and shortcomings Residents’ income has stable growth, water pollution control effects are outstanding, and the governance of air pollution is obvious. However, there are still problems such as serious degradation of coral reef ecosystems and lack of effective funding for ecological compensation, mainly due to the threat of insufficient capital investment and human activities. Conclusions It is recommended to improve the sustainable development capacity of the township governments, build a reasonable ecological compensation mechanism, accelerate the transformation of the township governments to the ecological government, increase the implementation of green GDP, form a virtuous circle of compared to achieve ecological environmental protection and economic development. Department decision -making provides a scientific basis.

Effectiveness and driving mechanism of ecological restoration efforts in China from 2009 to 2019

Over the past decades, China's rapid economic growth and industrialization have led to serious ecological concerns. To combat ecological degradation and promote ecosystem sustainability, China has made substantial investments in ecological restoration in recent decades. Nevertheless, a comprehensive analysis of the effectiveness and driving mechanisms of these efforts are still lacking. Therefore, this study aims to bridge this gap by employing national land-use survey data to evaluate the effectiveness and driving mechanisms of China's ecological restoration efforts during 2009-2019, with a specific focus on ecological land preservation, land use structure, and their contribution to ecosystem services. Additionally, the Geodetector model was used to detect potential influencing factors and driving mechanisms of these efforts. The results of this study revealed that: (1) Between 2009 and 2019, a total of 585,492.61 km2 of non-ecological land was successfully transformed into ecological land through various ecological restoration efforts. Most of these areas were previously unused or cultivated land. (2) Forest and grass plantations were the major ecological restoration efforts in China, accounting for 47.35% and 41.91% of the total restored ecological land, respectively. Grassland restoration clustered northwest of the Hu Line, while forest restoration concentrated mainly to the southeast. Water and wetlands restoration were mainly distributed around China's major rivers, such as the Yangtze River and Yellow River. (3) China's ecological restoration efforts contributed to a 2.53 trillion CNY yuan increase in ecosystem service value during 2009-2019, with over 65% of the increase attributed to ecosystem regulating services. (4) China's ecological restoration efforts were mainly influenced by anthropogenic factors, such as population, land use, and urbanization, while the non-linearly enhanced interaction between natural and other factors also deserves attention. China should balance urban expansion, agricultural development, and ecological preservation, aligning restoration with socioeconomic trends while establishing effective inter-regional ecological compensation mechanisms.

Study on Farmers’ Willingness to Accept for Chemical Fertilizer Reduction Based on the Choice Experiment Method: A Case Study of Communities Surrounding Poyang Lake, China

Chemical fertilizer loss during agricultural production is an important factor leading to the eutrophication of lakes and reservoirs. As fertilizer technology has become more widespread, it has become necessary to explore the ecological compensation mechanism in areas with important ecological functions to further reduce chemical fertilizer application. Among these, farmers’ preferences for chemical fertilizer reduction are one of the most important issues. Based on the survey data of 142 farmers surrounding Poyang Lake, this paper studies the farmers’ willingness to accept (WTA) the attributes of a chemical fertilizer reduction scheme using the choice experiment method. The results are as follows: (1) The farmers’ WTA value for each additional year of the program was 63.75 CNY/ha/year, the WTA value for every 10 percent increase in the proportion of participating land area was 73.875 CNY/ha/year, and the WTA value for every 10 percent reduction in the fertilizer application was 413.505 CNY/ha/year. (2) The household support burden, the proportion of non-agricultural income, and farmers’ understanding of the importance of wetlands significantly affect farmers’ WTA value. (3) The interviewed farmers can be divided into four different types: farm type, farm-oriented hybrid type, off-farm-oriented hybrid type, and off-farm workers, each with different preferences for fertilizer reduction schemes.

Analysis of temporal and spatial evolution characteristics and influencing factors of land use transformation in Hebei Province from the perspective of supply and demand

This study focuses on the counties and districts of Hebei Province as the research unit. It adopts a supply-demand perspective to analyze the spatial-temporal evolution characteristics of farmland utilization transformation in the province, investigate the coordination of this transformation, and explore the influencing factors. The weight of indicators is calculated using the entropy weighting method and Analytic Hierarchy Process The comprehensive evaluation model is then applied to calculate the supply-demand transformation index of farmland utilization in Hebei Province for the years 2005, 2010, 2015, and 2020. Furthermore, the spatial-temporal evolution characteristics are analyzed using the kernel density estimation method. The coupling coordination degree model is selected to explain the relationship between the supply-demand transformation of farmland utilization. Finally, the influencing factors are analyzed using the geographical detector model. The research findings are as follows: 1) The supply-demand transformation index of farmland utilization in Hebei Province has shown an increasing trend during the study period. The standard deviation of the supply transformation index has increased over time, while the demand transformation index has increased at a faster rate. High-density supply transformation is concentrated in the southeast, particularly in the eastern part of Shijiazhuang. Conversely, the northwest exhibits a low-density supply transformation. High-density demand transformation is observed in urban areas across the province, with a significant expansion from 2010 to 2015. 2) There is a strong correlation between the supply and demand transformation of farmland utilization. The coupling coordination degree has gradually improved from 2005 to 2015, transitioning from rapid to stable growth. The level of coupling coordination has shifted from imbalance to coordination. The mountainous areas in the northwest of Hebei Province exhibit relatively lower coupling coordination degrees, while the plains in the southeast demonstrate higher levels. 3) The supply transformation of farmland utilization is closely correlated with the natural environment, particularly elevation and topography. On the other hand, the demand transformation is closely associated with socio-economic development, with a scarcity of supply driving an increase in the demand transformation index. Industrial developed areas show a higher intensity of demand for farmland utilization. 4) To ensure the sustainable utilization of farmland while meeting food production needs, it is crucial to enhance contiguous farmland and mechanization levels, promote the integration of agriculture and tourism, establish an ecological barrier around Beijing-Tianjin, and optimize the ecological compensation mechanism for farmland. The above findings provide valuable insights into farmland utilization transformation and suggest important strategies for its sustainable development.

Public willingness to pay for farmland non‐point source pollution governance toward sustainable development: A choice experiment in Gansu, China

AbstractClarifying public willingness to pay (WTP) for farmland non‐point source pollution (FNSP) governance helps to establish an ecological compensation mechanism with public participation. This will reduce China's agricultural pollution and its environmental and food safety consequences while promoting sustainable development. Nevertheless, research has yet to reveal the public WTP within China's FNSP governance policy framework. To this end, a “2030‐oriented FNSP governance program” choice experiment with specific FNSP governance measures (fertilizer reduction, pesticide reduction, straw resource utilization, and mulch film recycling) was conducted in Gansu Province to reveal the public WTP for FNSP governance and its key influencing factors. Results from mixed logit models show that urban residents' marginal WTP (MWTP) for improving the FNSP status quo and different measures for fertilizer reduction, pesticide reduction, straw resource utilization, and mulch film recycling is ¥151.62, ¥1.33, ¥7.3, ¥4.85, and ¥3.16 annually, respectively, indicating the highest preference for reducing pesticides because of food safety problems. Meanwhile, the average individual WTP for optimal FNSP governance schemes is ¥513.02 annually, accounting for only 3.86‰ of annual household income; the regional aggregate social welfare of optimal FNSP governance is as high as ¥2038.23 million, accounting for 2.81% of GDP in 2020. This means that FNSP governance can bring substantial social welfare with a low household economic burden. In addition, the perception that food safety has improved in the past 5 years or an awareness of food safety incidents can enhance the willingness of urban residents to change the status quo of FNSP: the more serious the respondents perceive food safety problems to be, the stronger the above effects, indicating the critical impact of food safety factors on the public's WTP for FNSP governance. The study's findings highlight the potential to find socially acceptable ways to promote FNSP governance as well as provide insight into the relevant policymaking process from the standpoint of public participation and food safety.

How will ecosystem carbon sequestration contribute to the reduction of regional carbon emissions in the future? analysis based on the MOP-PLUS model framework

Carbon neutralization of land use and land cover (LULC) has become an important way for countries to cope with future climate change. Existing studies focus on the quantification and analysis of historical and current carbon storage and emissions but lack an understanding of future LULC carbon storage and emissions, which limits the practical guiding value of research findings for regional dynamic management and scientific decision-making. In this study, the temporal and spatial distribution patterns of carbon dynamics in different ecosystems, such as forest, cropland and grassland, in the West Liao River Basin (WLRB) since 1990 were quantitatively assessed. Grey multiple objective programming (G-MOP) and patch‑generating land use simulation (PLUS) models were used to predict the LULC distribution, carbon emissions and carbon storage under the sustainable development scenario (SDS) in the WLRB in 2030 and 2060, and a comparative analysis was performed with other development scenarios. The overall area of grassland and forest ecosystems showed an upwards trend from 1990 to 2020, while the area of farmland ecosystems slightly decreased. In the western part of the WLRB, net ecosystem production (NEP) showed high aggregation, and low NEP showed an aggregation effect in the urban area. Under the economic development scenario (EDS) in 2030 and 2060, cropland and impervious layers will be further expanded, carbon emissions will be the highest, and the carbon storage amount will be the lowest. Under the ecological protection scenario (EPS), the water area and forest area increased significantly, carbon emissions were the lowest, and carbon storage was the highest. Under the SDS scenario, the areas of cropland, forest, impervious layer and water body are moderate, and the carbon budget is better than that under the natural development scenario (NDS). Under these three scenarios, the barren area is lower than that of the natural development scenario. Considering the economic benefit, ecological benefit and carbon budget, the SDS scenario has the best performance. This study provides a new perspective for discussing the future carbon budget status of small-scale watershed areas and combines the goals of “sustainable development” and “dual carbon”. It provides a data-supported basis for discussing the diversified ecological compensation mechanism of the WLRB from the perspective of carbon neutrality as well as insights for the formulation of regional LULC optimization management policies.

Spatial-Temporal Distribution and the Influencing Factors of Water Conservation Function in Yunnan, China

Assessing the spatial and quantitative evaluation of water conservation within regional ecosystems holds vital significance for effective regional water resource management, allocation optimization, and enhanced ecological protection. In this study, we focus on Yunnan Province as our research subject and utilize land use data spanning from 2000 to 2018. The InVEST model serves as a key tool for evaluating Yunnan Province’s water conservation capacity over the past two decades. Furthermore, we employ Geographical detectors and ArcGIS 10.2 to delve into the spatial distribution patterns and the impact of both natural environmental and socio-economic factors on changes in water conservation capacity. The research findings reveal a spatial trend in regional water source conservation, characterized by a decreasing gradient from the southwest to the northeast. Over the past two decades, we have observed an initial decline followed by a subsequent increase in regional water source conservation, resulting in an overall upward trajectory. Precipitation displays the strongest correlation among natural environmental factors, indicating a significant influence on water conservation. Additionally, socio-economic data exhibit a noteworthy positive correlation with alterations in water conservation, primarily attributed to urbanization and the expansion of impermeable surfaces like urban construction land, which bolster regional water conservation efforts. This research offers valuable insights that can serve as a foundation for establishing local water source protection measures and ecological compensation mechanisms.

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.

Collaborative governance of trade-driven transboundary air pollution in China: A responsibility-based fair compensation mechanism

Transboundary air pollution poses a significant challenge in China, and collaborative governance presents a promising approach to tackle this problem. However, such approach is rarely implemented due to the influence of inter-regional trade dynamics. To address this issue, a comprehensive, responsibility-based fair compensation mechanism was established in the present study. The aim of the mechanism is to bridge the existing gap through the integrated utilization of air pollutant emission inventories, multi-regional input-output analysis, emission responsibility allocation, and an ecological compensation model. In 2017, approximately 50% of China's air pollutant emissions were embedded in inter-provincial trade, primarily originating from wealthier provinces and directed towards less-developed regions with higher pollution intensity. There exists a significant imbalance between the inter-provincial transfers of air pollution and economic benefits, owing to which Inner Mongolia and Liaoning have suffered from serious environmental inequity brought about by trade. The allocation of responsibility for trade-related emissions between producers and consumers is determined by the economic surplus they gain from trade. Such approach results in an intermediate outcome that falls between production-based and consumption-based emissions for the majority of provinces. The scheme highlights the import-related share of responsibility for economically developed provinces and the export-related share for less-developed, pollution-intensive provinces, which can primarily be attributed due to their differences in value chain specialization. The inter-provincial compensation volumes for trade-related emissions are determined based on the economically equitable emission responsibility sharing scheme. More developed provinces, characterized by industrial structures focused on low-pollution, high-value-added products, primarily function as compensation providers. In contrast, less-developed provinces with higher pollution intensity seek compensation from these more affluent regions. The present findings can offer a quantitative basis for the ecological compensation and collaborative control mechanism of trade-driven transboundary air pollution in China.

Quantitative simulation of ecological compensation approaches in transboundary watersheds of China: A scenario analysis based on a multi-regional CGE model

Watershed ecological compensation is becoming increasingly important as an effective way to achieve transboundary watershed governance. The large regional differences in economic development and watershed governance across China require the implementation of regionally differentiated policies. Previous studies have not systematically examined the potential impacts of ecological compensation approaches at the regional scale in China. As the Beijing-Tianjin-Hebei region is representative of China with severe watershed problems, the establishment of a watershed ecological compensation mechanism in this region has a demonstrated effect on solving regional co-management problems. By establishing a multi-regional dynamic CGE (Computable General Equilibrium) model with water quality and quantity control as constraints, the long-term impacts of different ecological compensation methods on different districts are assessed in terms of economic development, social welfare and water environment management, based on which the preferred compensation methods for the development of the three districts and the whole region are to be identified. The study shows that: Ⅰ) Different compensation approaches have varying impacts on regional ecology and economy, and trade-offs need to be made between the two to choose the appropriate compensation approach to provide a long-term incentive for regional watershed governance and maintenance; Ⅱ) The compensating areas prefer short-term compensation such as financial subsidies, while the compensated areas prefer long-term compensation such as industrial support; Ⅲ) Financial funds can support the development of primary and secondary industries in the short term, and subsidies to enterprises contribute to the overall economic synergy of the region, while industrial support from compensating areas to compensated area requires long-term layout. Accurate measurement of the potential impacts of different ecological compensation approaches can provide a scientific basis for the establishment of a long-term ecological compensation mechanism, and the model can also be applied to other regional policies to provide a reference for solving transboundary governance issues.