| With the deep going of sustainable development, many contradictions are becoming more and more serious, such as that of environmental protection and economic development, of ecology priority and Resources use, of ecosystem recovery and fund deficiency in the course of sustainable management. The key to these problems is to set up the mechanism in accordance with market operational rules, of which eco-compensation is one of the most necessary and important mechanism.The thesis, based on the relative researches at home and abroad, with the support of the project──China Economic Reform Implementation Project by World Bank, takes Hainan province for example and does some research on the relatively independent area, that is, ecological compensation standard and pattern by forest. It starts from the perspective of economics and, on the analysis of eco-compensation mechanism and reasons for it, proposes the operational mechanism. And the thesis aims to investigate completely all the stakeholders and the present situation in the mid-mountain of Hainan Province and analyzes its situation & limitations. It also quantifies the ecological services provided by the middle area, specifies the subject and object of the ecological compensation and guarantees the fund source and security system.The study results show that internalizing the environment cost is the fundamental to set up the ecological compensation mechanism. The non-market decision making is used to solve the problem, restoring it to be a socio-conflicting problem. Based on the individual reasoning and choosing and the game study on the stakeholders, it is possible to make the mechanism available in the form of bargaining. To fill the blank of the ecological compensation in China, the mechanism of the mid-mountain area in Hainan and the framework and design, discussed in the thesis, will provide an alternative for ecological compensation and suggest the possible solution to the problem of fund for ecological compensation.
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