Research On Market- Oriented Operating System Of Eco-compensation In Drainage Areas

In the ecosystem of drainage areas, due to liquidity of water, the environmental resources are excessively used by the upstream region in seek of the maximal economic benefit. Even though an ecological damage will be made, costs will be transferred to downstream areas and negative externality will be formed. Vice versa. If the upstream region has an enthusiasm to be committed to the building of the ecological environment, the downstream areas will enjoy a positive externality of ecology without payments. Hence, in a short term, due to the existence of externalities, the upstream areas in the river ecosystems have preference for over-exploitation while the downstream areas will prefer to "Free Riders" out of each of their own economic interests. But to the whole ecosystem of the drainage, those preferences are a kind of deviation of the optimal state of entire watershed system, which leads to so-called "Prisoner's Dilemma". Eco-compensation in the drainage areas is an incentive mechanism that makes synergic arrangements to the socio-economic and ecological benefits of the whole river.Eco-compensation is a difficult problem in the frontier of ecology, environmental economics, environmental management and sustainable development research. Based on relatively mature theory of the negative externality of environment, and the status quo of the domestic and foreign research on Eco-compensation, using to the general means to internalize externality, i.e., Pigou theory and Coase theorem, this dissertation classes the modes of Eco-compensation operation into two categories: government dominant compensation and market-oriented compensation from the perspective of the main body in operation of the ecological compensation. Government dominant compensation is the most direct and simplest way of Eco-compensation, while market-oriented compensation is a useful supplementary to government dominant compensation. By clarifying theoretical basis and principles of market-oriented operation of Eco-compensation in the drainage areas, the raise and allocation mechanisms for the market-oriented Eco-compensation are designed, and a successive negotiation mechanism, etc are put forward as the realization of it from the perspective of demand and supplier of the ecological services. Since Eco-compensation research in China is still in the early stage, the relevant supporting mechanisms are researched in order to guarantee the realization of market-oriented operation of Eco-compensation in drainage areas. The main content in the dissertation are as follows:Chapter I: The origin of the Eco-compensation is explained and the fruits both in domestic and foreign academics research and practice are analyzed.Chapter II: The concept of the Eco-compensation is defined in this chapter. With the theory of externality, public goods and ecological capital theory, the basis of construction the Eco-compensation are analyzed.Chapter III: From the perspective of the main body in operating the ecological compensation, government dominant compensation and market-oriented compensation are defined. Meanwhile, they are analyzed by comparison.Chapter IV: By the case study of Huanghe drainage area, this paper finds that there is an inevitability of constructing market-oriented Eco-compensation in it, then the principles, main body of market-oriented Eco-compensation mechanism are raised; meanwhile, mechanism of raising and allocating funds in market-oriented Eco-compensation are constructed.Chapter V: The forms of realizing Eco-compensation in Huanghe drainage area are designed. Different beneficiaries could operate in different ways, including successive negotiation, compensation between departments, and lottery for eco-compensationChapter VI: The framework of market-oriented Eco-compensation system is established and corresponding operational recommendations for it are put forward. From the view of adjustment mechanism of environmental protection, binding mechanism by laws based on the government's legalization and feedback and supervision mechanisms by public participation are designed to support the operation of market-oriented Eco-compensation mechanisms.Chapter VII: Summary of the main findings in this dissertation.