| Since the Converting Cultivated Land back to Forest and Grassland Project been executed in Sichuan Province from 1999, both National government and all levels local governments in Sichuan province have invested a large number of labor, material and finance resources, which, have improved the ecological environment, effectively controlled the water and soil loss in Upper Reaches of the Yangtze River, provided a strong ecological guarantee for the economical development in Lower Reaches of the Yangtze River. However, in the meanwhile of this huge project being carried out, it is necessary to investigate how to ensure the sustainable development of local economics so that it is able to provide strong finance and fundamental support to the project itself.In this thesis, by investigation and collecting corresponding information, I presented the status and effect of the currently carrying out of Converting Cultivated Land back to Forest and Grassland Project in Sichuan Province. To address the influence of the project on the regional economics of Sichuan province, I analyzed the consumption structure, planting industry yield and local finance revenue in rural area, and calculated the influence on GDP and product of three main industries of Sichuan province by using Input-Output Analysis. Furthermore, the objects, standards and channels of regional economical compensation since the ecological project has been executed in Sichuan province are also discussed.Since converting cultivated land back to forest and grassland, in Sichuan province, the soil structure has been improved, nutrient content has increased, water and soil loss has been effectively controlled. The amount of soil erosion decreased 5,300,000,000 t per year on average, while the biomass increased 29,477,600 t and sediment content in water decreased 60～80%. Based on the influence on regional economics, the Input-Output Sheet of 124 departments in Sichuan province has been re-organized according to the direct consumption coefficient, getting a new Input-Output Sheet which gives prominence on 30 agriculture correlated departments. In the 6 years of the conversion, output value of planting decreased 2,768,640,000 yuan in total. Output value of the three main industries decreased 13,301,520,000 yuan, 20,045,770,000 yuan and 14,693,050,000 yuan, respectively, with the secondary industry displayed the most loss. Since the conversion, the total loss and expense of the local government is 681,343,800 yuan and 1,460,022,000 yuan, respectively. Due to the conversion policy, GDP decreased 48,040,000,000 yuan in total. As a result of the output decrease of planting industry, the correlated production departments were looking for other substitutes, which consequently decreased the extent of reliance of Sichuan province on the secondary industry. The Engle Coefficient of rural residential decreased from 0.16 in 1976 to 0.14, which demonstrates the current standard of living enhanced. However, this enhancement is not sustainable. Once the national compensation is terminated, income of rural residential will decrease.After the national compensation policy terminated, other financing channels are needed for helpingSichuan province to continue the adjustment of industry structure and promote the economic development in the conversion area. To address this problem, it is proposed in the thesis that using the loss of financial revenue and that of GDP of Sichuan province as the compensation standard, setting the governments and enterprises in Middle and Lower Reaches of Yangtze River as the object of compensation, funding the conversion project in different ways like investment, setting up ecological funding and ecological taxes, et al. |
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