Ecological compensation based on the ecosystem services value: A case study of the Xin'an River Basin in China

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Abstract To establish a sound ecological compensation (EC) mechanism in the Xin'an River Basin, this study suggested utilizing ecosystem services valuation to determine the compensation amount. In this study, a reasonable watershed EC model was established by ecological compensation demand intensity coefficient (ECDIC) and value spillover theory (VST) of the ecosystem services. The results indicate that ecosystem services in the Xin'an River Basin can be classified into three categories: supply service, regulating service, and cultural service, comprising 14 specific functions. These functions include water resource products, fishery products, agricultural products, forestry products, animal husbandry products, water conservation, soil conservation, flood regulation and storage, water purification, air purification, fixed carbon dioxide, release oxygen, climate regulation, and leisure tourism. The total ecosystem services value (ESV) in the Xin'an River Basin was estimated to be 70.271 billion CNY, with supply service accounting for 22.7%, regulating service accounting for 24.6%, and cultural service accounting for 52.7%. Based on the VST, the upper and lower limits of EC in the Xin'an River Basin were calculated to be 2.115 billion CNY and 1.777 billion CNY, respectively. Therefore, the ESV based EC model for the Xin'an River Basin can effectively address the challenge of inadequate EC in the watershed. It also facilitates balanced regional development and serves as a theoretical foundation and empirical evidence for the government to establish a unified national policy on cross-border river basin ecological compensation.

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