Payment Criteria and Mode for Watershed Ecosystem Services: A Case Study of the Heihe River Basin, Northwest China

Xiaoyu Song, Yuqing Liu, Fanglei Zhong, Xiaohong Deng, Yuan Qi, Jinlong Zhang, Rong Zhang and Yongnian Zhang
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Xiaoyu Song: Northwest Institute of Eco-Environment and Resources, Chinese Academy of Sciences, Lanzhou 730000, China
Yuqing Liu: School of Urban and Planning, Yancheng Teachers University, Yancheng 224007, China
Fanglei Zhong: School of Economics, Lanzhou University, Lanzhou 730000, China
Xiaohong Deng: Institute of County Economic Development, Lanzhou University, Lanzhou 730000, China
Yuan Qi: Northwest Institute of Eco-Environment and Resources, Chinese Academy of Sciences, Lanzhou 730000, China
Jinlong Zhang: Northwest Institute of Eco-Environment and Resources, Chinese Academy of Sciences, Lanzhou 730000, China
Rong Zhang: School of Economics, Lanzhou University, Lanzhou 730000, China
Yongnian Zhang: School of Economics, Lanzhou University, Lanzhou 730000, China

Sustainability, 2020, vol. 12, issue 15, 1-12

Abstract: Quantitative evaluation of the relationship between payment criteria and the amount of additional ecosystem services can improve the cost-effectiveness of payment for ecosystem services (PES) projects. This paper simulated additional water conservation (AWC) using the Soil and Water Assessment Tool (SWAT) model, examined appropriate payment criteria, and matched different payment modes with local herders’ preferences in Northwest China. The results showed that if all the low-coverage grass areas were to be closed through PES projects, the actual payment criteria, 37 yuan/ha, would need to be increased eight times, which would be 302 yuan/ha. Along with that, annual AWC could reach 1.69 × 10 6 m 3 . If PES projects were implemented in all the low- and medium-coverage grass areas, payment criteria would need to be increased to 365 yuan/ha, and the annual AWC would reach 2.59 × 10 6 m 3 . There were scale economy effects in this range, because a 21% increase in the payment criteria would result in a 66% increase in the total AWC. The appropriate mode for herders above 40 years old is “cash + in-kind compensation” and “cash + capacity” for those below 40, due to the preferences varying in age.

Keywords: payment for ecosystem services; payment criteria; payment mode; Sunan County; Heihe River Basin (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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