Ecological compensation mechanism in water conservation area: a case study of Dongjiang river

The appropriate economic compensation from downstream to upstream watershed is important to solve China’s social and economic imbalances between regions and can potentially enhance water resources protection and ecological security. The study analyzes the implementation of ecological compensation policy and related legal basis under ecological compensation mechanism theory and practice patterns, based on current natural environment and socio-economic development of national origin in Dongjiang water conservation areas. Under the principle of “Users pay”, the Dongjiang River is the subject of ecological compensation and recipient. By using the “cost-benefit analysis” and “cost method of industrial development opportunity”, we estimate that the total ecological compensation amounted to 513.35 million yuan. When estimated by the indicators such as water quantity, water quality and water use efficiency, we establish the “environmental and ecological protection cost sharing model” and measure the total cost of protecting downstream watershed areas, the Guangdong Province, is about 108.61 million yuan. The implementation of the Dongjiang source region that follows the principles of ecological compensation and approaches are also designed.