Research Of Ecological Compensation Accounting Based On Water Footprint Theory

Ecological compensation has become a hot topic of the21st century.CPCseventeen proposes we establish the ecological civilization and advocates we establishthe ecological compensation mechanism. Watershed eco-compensation is animportant branch of ecological compensation. In recent years, the pollution of river isincreasing. In2009, China Daily has reported that up to90%of the groundwater ispolluted.The watershed eco-compensation mechanism can effectively help to reducewater pollution and promote the development between environment and economics.In recent years, blue algae outbreaks frequently in Taihu Basin. It makes thedeterioration of water quality. Continuous high-temperature causes that algae dies anddecays, finally water is polluted. At the same time, people still continue to pollute thelake. According to a comprehensive evaluation of water quality results of the TaihuBasin’s Water Resources Bulletin in2009, there is5582.1one thousand meters in theriver, better than the class Ⅲ (including class Ⅲ) river length is accounted for theriver length11.8%, Ⅳ is accounted for19.1%, inferior Ⅴ class (including class Ⅴ) isaccounted for69.1%.On the one side we control the river pollution actively, on theother side domestic sewage from agriculture and industry flows into the lake. If we donot solve the problem fundamentally, the speed of controlling the river will be far lessthan the rate of pollution.Accounting methods of the traditional watershed eco-compensation mainly focuson the small watershed, and we often only take into account the polluter, ignoring theprotector. Pareto optimal can not achieve. Therefore, this article will introduce waterfootprint theory, and establish a suitable model for pollution and protection.Firstly, the theoretical basis of watershed eco-compensation and accountingmethods are described, and we evaluate of traditional accounting methods.Secondly, we analyze the factors of Taihu Basin, including economy, population,and water quality and so on. Then we select the subject and object of the Taihu Basin,according to their actual situation, we can calculate the water footprint initially. Weanalyze the relationship between the water footprint and the economic growthempirically. We find agriculture, industry; ecology and life carry a large part of thevirtual water in Taihu Basin. And we calculate the average annual water footprint ofthe Shanghai is4.746billion cubic meters, the average annual water footprint of theHuzhou is1.575billion cubic meters in2001to2009. By the stationary and cointegration theory,the relationship of Shanghai’s economic growth and the water doesnot meet the inflection point the environmental Kuznets footprint (EKC),and it doesnot meet the inverted "U" shaped EKC. However, the relationship of the Huzhou’seconomic growth and water footprint has reached the low point of the "U" shaped EKC.Finally, by the dates of Water Resources Bulletin from the studied area, weanalyze the water supply and demand. Accounting to the model, we calculate theamount of compensation. And we put forward the policy and recommendations for theTaihu Lake Basin. Huzhou should be given3.675billion Yuan by Shanghai as thecompensation through the water footprint of the Huzhou and Shanghai.