The Study On Financial Engineering Of Grassland Ecology In China

Global have very rich grassland resources, but more than half of the grasslandresources degrades to mild and moderate. Our country China is one of the richest ingrassland resources, which the grassland resources area is about to41%of the land.But in those grassland areas, the ecology is fragile for some natural factors (includingrainfall and climate change etc.) and anthropic factors (over-grazing of predatorydevelopment and insufficient investment) which lead to over90%of the grasslanddegrades with vary degrees. The grassland degradation brings out land salinization,desertification, and desertification, also dust storms and other ecological problems.Furthermore, it seriously affects the local ecology then the destructiveness couldexpand to national and the whole world. However, the grassland degradation has beena common global issue of ecology environment.Governments at all levels gradually realized the grim situation of grasslanddegradation. Governments have implemented grazing ban in13provinces includingAutonomous Regions, and Treatment Project of Sandstorm Sources of Beijing andTianjin. Though those projects achieved certain results, the residents in pastoral areas,their intrinsic motivation of economy development and standard living improvementis not compatible with its limited ecological capacity in pastoral areas. The conflictsamong people, mineral, grassland, livestock are still, and the grassland presentssituation as “partial improvement with overall deterioration”,“the pace of governanceslower than the degradation”. How to recover the grassland eco-organic integrationwith local economic development, and redesign a completely effective and sustainablemodel for pastoral areas? By following the grassland ecological laws, exploring asuitable development model for people with nature, and looking for the harmoniouscoexistence of sustainable development which has been a major theoretical andpractical issue.This dissertation creatively puts forward a concept of grassland ecology financial engineering, designs the related system, and makes a structured financial engineeringsystem. The main idea of grassland ecology financial engineering is as follows: underthe policy principle of "plan prairie unified, operate the project market-oriented,decentralize production and use the funds coordinately ", it exploits leverage with theconstruction mode of "government guidance, herdsman management, communityparticipation", therefore it can achieve economic and social sustainable developmentby the integration of grassland ecological restoration, herdsman stable enrichment andeffective economic development.Financial engineering of grassland ecology system is a great framework,involving the disciplines of ecology, systems engineering, economics and finance, andit belongs to the extension and application of interdisciplinary theory. With thetheoretical analysis and empirical data analysis combining research, this paper can bedivided into the following two parts:The first part is theoretical analysis. Based on sustainable theory, this articlesystematically analyzes existing research results on the theoretical basis, anddescribes the main content of financial engineering of grassland ecology system. Afterthe cost-benefit analysis, it proposes financing program, financial services system andrisk control system.The second part is empirical analysis. Through the estimation for financialengineering of grassland ecology costs and benefits, on the basis of field research anddata collection, the article analyzes risk on the implementation of the project. Inaddition, the use of principal component analysis, the article also measures the prairieregion in aspect of ecological, economic and social sustainable development from1999to2010, and identifies the grassland areas of sustainable development indicatorsto verify of financial engineering of grassland ecology system.Accordingly, the main content of this paper is organized as follows.The foreword clarifies the research background and significance, and defines thefinancial engineering of grassland ecology system. Then it describes the research method, research ideas, innovation and inadequacy, and the outlook for futureresearch.The first chapter lists the related literature views about financial engineering ofgrassland ecology system from the development theory, financial and ecologicalenvironment financing, grassland ecology management and ecological compensation.Then it evaluates the domestic and international research.The second chapter mainly expounds the grassland ecology financial engineeringtheory basis. As an engineering system, financial engineering of grassland ecologysystem not only absorbs the practical experience in both domestic and international,but also has solid theoretical foundation. It mainly involves economics, ecologicaleconomics, macro financial engineering and industry financial engineering.The third chapter put forward the concept of financial engineering of grasslandecology system using the leverage principle. Based on this, it summarizes the mainideas and construction contents of financial engineering of grassland ecology system,and designs the grassland ecology industrial chains.The fourth chapter evaluates loss of the current grassland ecological destruction,and analyzes the actual costs and benefits of financial engineering of grasslandecology system with qualitative analysis and quantitative analysis. Then it discussesthe positive externalities of the system in the aspect of implementation of ecology,economy and society.The fifth chapter analyzes the current financing situation of financial engineeringof grassland ecology system which is based on industry funds in engineering system.Then it proposes grassland ecological financial engineering financing system andfinancial service system.The sixth chapter studies in financial engineering of grassland ecology systemrisk, and identifies and measures the risk. Then it brings out the reasonable andeffective measurements and management controls for the risk.The seventh chapter does the empirical studies of financial engineering of grassland ecology system.The eighth chapter indicates the conclusion and policy suggestions.The innovation of the article displays as follows: first of all, the dissertation putsforward the concept of financial engineering of grassland ecology system whichprovides new methods and perspectives for the grassland area development. It helpsfor achieving the sustainable development, economy and society harmoniousdevelopment. Secondly, it creatively applies the financial engineering theories tograssland ecological management which offers a case for ecological financial theorystudy. Thirdly, macro financial engineering theory and industry financial engineeringtheory are the emerging research direction, and the related research is limited. But thisarticle does extensional and practical studies about grassland ecology in there fields.