Study On Watershed Ecological Compensation Based On Real Options And Joint Venture

With the social development and progress, human activities are constantly depleting the limited natural resources, and the resulting damage to environment is becoming more and more serious. Eco-environmental degradation has caused many adverse effects to production and life of human beings, and become a key factor which constrained socio-economic development. This situation makes it even more emphasis on ecological and environmental protection and governance. However, the characteristic of positive externalities determines that ecological construction lacks of attractive for investors. Therefore, as an effective means to solve this problem, the ecological compensation is widely used in ecological construction and ecological environment protection projects.Real options approach has been widely used in the applied research of investment field, and it has many advantages that traditional methods do not have at the aspect of natural resources development, R&D, project investment decision-making. The development of natural resources is the earliest and most mature application direction for real option. Based on this point, this article introduces the real option approach to building an eco-compensation mechanism, through estimated the value of mineral resource development projects, in order to get a general expression for the amount of ecological compensation. This article will build models of ecological compensation based on a joint venture, and analyze the investment decision-making behavior of co-investors.This article begins with an overview of the research at home and abroad in theory of real options and ecological compensation, while summarizes in theoretical and applied research on joint venture approach, in order to paves the theoretical way for the discussion of the follow-up chapters.The article is divided into two main parts: the main task of the first part is to arrive at the general expression in the amount of ecological compensation. Take mineral resources development projects as call options, calculate the value of single mineral resources development projects with the real options approach firstly, and then assign the respective weight (the influence coefficient of mineral resources development to economic development) to the calculated value, the weighted average means the amount of ecological compensation. Based on the first part, the second part has built the watershed eco-compensation model. Take the contribution ratio of the river downstream in ecological compensation through the examination of relevant indicators firstly, and then multiply the amount of ecological compensation calculated in the first part to determine the capital contributions. The regions of river downstream establish the risk investment institutions in different sizes according to their respective capital contributions, and do joint investment to the upper areas of the river basin. In this process, the main joint venture will decide whether to invest and to do some efforts after the investment according to the level of experience of them and other joint ventures.For a number of issues in the construction of eco-compensation mechanism, this article has given some recommendations at the aspect of legal protection, broadening financing channels, to strengthen financial management, etc. The article finally made a summary of the whole chapter. Research shows that: In the basic investment behavior, the higher the level of experience of the joint venture, the greater the likelihood to invest in the project, while whether to do some efforts after investment depends on the comparison of NPV value between that do some efforts and that no efforts. In the most priority investment decisions, joint ventures determine their behavior among that do not make investment, that investment and effort, that investment but not efforts respectively, according to the level of experience of leader and follower joint ventures.