Study On Eco-compensation Mechanism For Agriculture Water-saving In The Northwest

As an important production element, water resource plays a significant role in the agricultural and economic development in the northwest part of China. The scarcity of water resources restrains the scale and growth rate of agriculture and economy in the northwest. Its uneven distribution makes it hard to develop integrated industrial structure in this region. Thus, the potential of national economic development in this region could not give a full play.Water supply, water-saving techniques and their management systems all affects the efficiency of water resource allocation. Water resource has the feature of natural endowments, but the advancements in water-saving technology could improve the water using and allocation efficiencies. However, significant breakthrough in water-saving technology could only be realized after long time practice. Therefore, under the given water resource and technological conditions, the management system would be the main external factors influencing people's economic behavior, that is whether the policy would encourage or inhibit people's economic behavior. In the long run, the final solution for water resource scarcity should lie in the advancement of technology and management innovation, thus to promote the development of water-saving agriculture in the northwest, and stimulate the coordinated development of the regional economy and ecology.This paper illustrated the significance of ecological compensation mechanism for agriculture in the northwest through water-saving technology. It is pointed out that the economic feature was the theoretical base for ecologic compensation. The nature of water resources as public good and the internalization of the external cost for the utilization of water resources were the theoretical basis for conducting ecological compensation through water-saving agriculture. The theoretical framework was formulated for ecological compensation through water-saving farming. The incentive mechanism for farmers as the micro-subjects and the green GDP budgeting system for the government as the macro subject in this process were explored.The macro-and micro-subjects for water-saving agriculture in the northwest were selected for the case study. In this paper, it was pointed out that the key factors for saving water in the agricultural practice in the northwest were as follows:to stimulate farmers enthusiasm to conduct water saving practice, use the economic means to promote ecological compensation mechanism for agriculture in the northwest through water-saving. It was also necessary to develop proper ecological compensation mechanism that could meet needs for local economic growth and ecological conservation, conduct green GDP budgeting system. That was to deduct the environmental resources cost and the expenses for environmental protection. This budgeting system could not only reflect the real economic growth scale, but also reflect the degree at which the local economic growth and natural ecology could realize harmony. This budgeting system could also enhance the awareness of the local governments and officials to save water resource and protect ecological environment, coordinate the interests between different bodies, and thus to realize the ultimate goal to save water and promote environment protection.Taking the case study in Zhangye city as an example, which is located in the inland upper reach of Huanghe River, the blueprint for constructing special economic and ecological zone in Zhang yes city was developed, using theories and methods of ecological compensation, green GDP budgeting system. Analysis through economic and policy aspects of the ecological compensation mechanism was conducted. It was suggested to use necessary value compensation measures, build the operation mechanism and management systems for this special economic and ecological zone, thus to ensure the smooth running of water-saving policies. This study enriched the theoretical basis and practice for ecological compensation and green budgeting system for water-saving agriculture.