| China's economy has developed fast in the reform and opening up period. At the same time, the ecological environment is deteriorating. The scope of eco-environmental damage is large. In recent years, the frequency of issue such as drought, floods, sandstorms and other natural disasters, has brought great economic and social losses. To some extent, the ecological environment has become the bottleneck constraining to economic and social development, impacting China's sustainable economic and social development and the country's ecological and environmental security.At present, China has established a relatively complete system of eco-protection policy. Legal basis and policy instruments have also been relatively sound in the problems of ecological governance. In practice, however, we are still deeply felt that there are still structural policies problems in ecological protection, particularly in relation to the ecological construction and the important ecological function areas such as national, watershed and mineral resources and other areas of eco-environmental protection. Needlessly to say, in this type of ecological protection and pollution prevention, there is a common interest in the event. The distribution of environmental benefits and its associated economic benefits is unfair. That will lead that the beneficiaries possess the eco-efficiency freely, protector will be lack of proper economic incentives, destroyer fails to assume the responsibility and costs of ecological damage, the victim is not given the financial compensation. This environment and its economic interest is distorted, not only leading great difficulties in our country's ecological environment, but also threatening the development among the different groups of people. Therefore, to solve these problems, we need to establish a distribution relationship to adjust the main interests of the relevant policies and encourage eco-environmental protection acts. This is the basic policy implications and objectives in eco-compensation mechanism. In this paper, we will use public policy and institutional analysis and new institutional economics, public economics, public choice theory, game theory and other knowledge and tools to understand the ecological compensation mechanism. We will establish a multi-center self-compensation for theoretical analysis framework to deconstruct the perspective of systems ecology compensation breaking the government mechanism, the market mechanism and the internal mechanisms. The system is designed for the specific attributes of the ecological environment and related interests of the incentives faced by the main body, as well as the existing formal and informal system of practice, selecting the appropriate ecological compensation mechanism. That is a kind of "multi-center, self-compensation" mechanism.This dissertation is divided into six chapters.Chapter one is the introduction, which explains the background of this dissertation and the theoretical and realistic value of this research, summarizes studies implemented by domestic, international scholars, introduces the author's approach towards the problems, and points out the innovation and deficiency of this dissertation as well.Chapter two is theoretical basis. Analysis of the ecological environment and its associated system of governance activities, the emergence and evolution of history, a variety of institutional arrangements to explore ways to manage the environment and their performance to explain the micro-foundation for ecological compensation:material factor-the ecological environment and human factors --involved in the main ecological compensation. This paper argues that, in the ecological environment, the government mechanism, the market mechanism and independent mechanisms are not omnipotent, all have their own strengths and weaknesses. Eco-compensation mechanism of innovation is not to deny all forms of the original system, but on the basis of the original system, to find better system. The ecological environment is scarce and public goods properties, and also provides ecosystem services, that there is more the establishment of ecological compensation mechanism has laid a theoretical foundation for economics.In chapter three, we identify China ecological compensation stakeholders and analysis the major stakeholders 'behavior. This paper argues that, in compensation for ecosystem services and important ecological function areas of compensation, the major stakeholders, including:central government (the State Department as the representative), local governments (provincial, county and township governments), environmental management (including the State Environmental Protection Office, the provincial Environmental Protection Bureau, etc.) as well as the perpetrators of ecological compensation (mainlylocal residents). Ecological compensation in the basin, the major stakeholders, including:watershed ecosystem upstream and downstream areas, watershed management and river basin local governments. Compensation in resource development, the major stakeholders, including:the local businesses involved in resource development and environmental management.In transition China's eco-compensation, the central government and local targets is inconsistent, leading to different behavioral strategies, resulting in the failure of China's environmental policy; in watershed ecosystems, due to the presence of externalities, the upstream and downstream areas of the economy for their own benefits were over-exploitation and the "free rider" behavior preferences; in ecosystem services, compensation and important ecological function areas compensate for the implementation process, some regions in the original planning of the ecological construction project, there are not local residents to conduct ecological construction and environmental case management supervision; in resources development, compensation, there are the government and enterprises in the enterprise is the implementation of a rational eco-compensation on the game.Chapter four is a core part of this article, analysis of the ecological compensation mechanism for the government, the market mechanism and the mechanism of internal mechanism, and proposed a multi-center self-compensation framework of analysis, breaking through government mechanisms, market mechanisms and internal mechanisms. This paper argues that a single choice of government compensation, compensation or the internal market are required to pay significant compensation for the costs, there are different aspects of the failure, but in practice three kinds of modes of compensation are often cooperate with each other and complement each other to combat and competition, there is a close interaction relationship. This innovative eco-compensation mechanism for us to provide a meaningful basis for inspiration and direction conditions, that is, to break the mechanism, the market mechanism and the internal mechanisms, as well as the existing formal and informal system of practice, select the appropriate ecological compensation mechanism. This is essentially a kind of "multi-center autonomy" compensation mechanism.Chapter five is the empirical analysis section. This chapter analyzes the transition to Chinese practice of eco-compensation typical case:major ecological construction projects, ecological compensation practices, Jinhua River basin ecological compensation practices and community participation in protected areas in the Fanjingshan the use of returning farmland to forest projects, using research provided by this article ideas and research framework, and further on China's current ecological compensation conducted in-depth analysis of practical problems, and more clarity in transition eco-compensation mechanism in China's innovation.Chapter six is the summary of the full text. We propose Chinese eco-compensation mechanism in transition and innovative policy proposals.
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