The Cost-Benefit Research Of Lianhua Lake's Wetlands Park Project In Tieling City

The cost-benefit analysis is a method of assessing the project's value by comparing the whole cost and benefit. As an economic decision-making method, the cost-benefit analysis is often used to assess the public projects'value which is needed to quantify social benefits. In this method, the whole cost and benefit of a project or decision should be listed and quantified. The concept of cost and benefit analysis method was first appeared in French economist Jules Parpart's writings in 19th century, which were defined"society's improvement". After that, this concept was redefined by Italy economist Pareto. Then till 1940, American economists Nicholas Karldor and John Hicks extracted and summarized the existed theories and the theoretical basis of cost and benefit analysis was formed, which was known as Karldor Hicks Priciple. It was also that time the cost and benefit analysis began to penetrate in the government activities. People paid more attention to the investment, the economic and social efficiency of project expenditure because of the economic development and the increase of the government investing project over the 60 years. It is so needed that an analysis method of comparing cost and efficiency. At this opportunity, the cost and benefit analysis developed rapidly in practice and was adopted all over the world.Lianhua Lake's Wetlands in Tieling, Liaoning Province covers an area of 4,226 hectare. It is a complex wetlands which is contained with artificial pool, rice field, rivers and small groups of shallow lakes. It once had the network water structure with lakes beyond lakes. This complex structure has certain uniqueness and representation in northeast and the whole country as well. It has clear wetlands features of the soil structure, biota and complete ecological process. Tieling municipal government proposed to build the Lianhua Lake National Wetland Park, in order to make full use of the resources, implement the sustainable development strategy and ecological construction, and to meet Tieling people's material and cultural needs and the needs of Tieling City's tourism development.The construction of Lianhua Lake Wetlands Park project in Tieling City is both nonprofit and entrepreneurial. It is so very important and practical to analyze its cost and benefit analysis and research the comprehensive benefits of the government investing nonprofit project. As an agricultural area whose industries are under-development, Tieling City's financial situation is tight. In order to promote sound and rapid development of local economy, we must base on local conditions, play to its advantage in resources and actively promote the economic development of special industries. Lianhua Lake Wetlands are the hub between the new district and the old one, and it plays an important role in purifying the ecological environment. So we can develop it with the premise of protecting the completion of ecology system, process and service function. On this basis, we could fully use the wetlands'multifunction, develop the tourist industry, and therefore fulfill the maximum of the economic and social benefits. This article use this economic decision-making method to analyze the position, cost and comprehensive benefits of the project of Lianhua Lake National Wetlands Park in Tieling City. It also quantifies and assesses the value of this nonprofit project's social benefits and proofs the feasibility of the project. Meanwhile, I hope that the research can provide the theory and reference to the economic development of the local special industry.The article is divided into four parts.The first part is the project overview of the Lianhua Lake Wetlands Park. It produces the construction background, condition, necessity, the main economic and technical indicators and management of the park. This part makes an overall knowledge of Tieling Lianhua Lake Wetlands Park for readers.The second part is the position analysis to Lianhua Lake Wetlands Park. In this part, it analyzes the theme position of the Wetlands Park firstly, that is, the themes of wetlands ecology protection, ecology restoration, tourism and science education; secondly, it analyzes the image position of the park. Based on the wetlands resources and style characters in northern Liaoning, the park can be created as a construction demonstration of northern national wetlands park in China, northern wetlands entertaining center and the harmony paradise between man and nature. Its taste and attraction of ecology tourism could be improved continuously; thirdly, it analyzes the market position of the park. The tourist market is subdivided in the light of arguing the park's tourist products and style, and combining the tourist market analysis and its regional advantages; fourthly, it analyzes the development targeting position of the park. Through the position analysis of Lianhua Lake Wetlands Park above, the article proofs the importance of this construction project in promoting the local tourist development of Tieling, protecting the completion of the wetlands ecology system, maintaining the ecology process and service function, fully making use of the multifunctional benefits. It is also proofs the necessity of cost-benefit research of Lianhua Lake Wetlands Park.The third part analyzes the construction cost of Lianhua Lake Wetlands Park's project. In this part, it elaborates the composition of wetlands park construction investment from both project's distribution and contents at first; secondly, it introduces the range of park's investing budgetary and estimates that the construction's amount of funds is 170,794,100 yuan; at last, it proposes some advices of financing and collecting funds according to the feature of wetlands park's ecology social nonprofit project.The fourth part deeply analyzes the comprehensive benefits of Lianhua Lake Wetlands Park project. In analysis of economic benefits, it calculates that the wetlands park's instantaneous capacity of the environment is 10,376, the daily capacity of the environment is 16,342, and the annual capacity of environment is 4,412,000 by using area, line and bayonet-sockets methods. The wetlands park has a good development potential; next, it predicts the annual tourist scale in operating period (2010-2026) according to the statistics; thirdly, in the light of the analysis of wetlands park's development level, tourism products grade and per capita disposable income of tourist source location, it comprehensively makes the consumption of fixed and calculates the income, cost and taxes. Then it comes to the conclusion the total profit is 398,991,400 yuan, the net profit is 263,182,900 yuan, the return on investment is 5.47 percent, the investment profit and tax rate is 10.79 percent. In analysis of ecology benefits, it analyzes the wetlands park's function of restoring the completion of ecological function and system, improving biodiversity, ensure local industries and daily living's water and of birds migration. And it estimates that the ecology system service functional value within the framework of short-term construction is 13,800.9 by using the replacement cost method, shadow project method, Xie Gaodi's ecosystem service value scale. The value is 61,148,000 yuan more than it is now. In analysis of social benefits, by the qualitative means, it elaborates the importance in improving Tieling City's cultural popularity, promoting the formation of wetlands culture, conducting wetlands science research and education, improving the consciousness in protecting wetlands of the public.After the construction of Lianhua lake wetlands park in Tieling finishes, the ecological and social benefits is very evident, as well as the economic benefit. So finally, comparing the cost and comprehensive benefits, the article comes to a conclusion that this project is feasible.