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Prof. Dr. Linyu Xu

School of Environment, Beijing Normal University,

Beijing 100875 China

2015.06.19 Berlin

Introducing eco-compensation mechanisms in

urban water resource areas to improve

ecosystem services provision

8th Sino-German Workshop

Introduction

Urban

biodiversity &

eco- services

1. What they are

2. Why to protect

3. How to protect

1.1 Urban biodiversity

Urban biodiversity is the variety and

richness of living organism (including

genetic variation) and habitat diversity

found in and on the edge of human

settlements ( Müller et al., 2010).

Urban environment offer a rang of opportunities for organisms,

within, upon, and between individual built structures.

urban green space

vegetated area

wetlands

urban flora

urban fauna

habitat

1. What they are

Ecosystem services incorporate both the goods and services provided by the functions of the system (Costanza et., 1997).

Urban ecosystems contribute key services for human physical, social and mental well-being.

street trees lawns/parks urban forest cultivated

land wetland lakes/seas streams

air quality regulation √ √ √ √ √

climate regulation √ √ √ √ √ √ √

noise reduction √ √ √ √ √

rainwater drainage √ √ √ √

sewage treatment √

recreational &

cultural values √ √ √ √ √ √ √

1.2 Urban ecosystem service

Urban ecosystem services in Stockholm (Bolund, 1999)

1. What they are

Urban biodiversity

Urban ecosystem

service

1.3 Urban biodiversity & urban ecosystem service

Urban ecosystem

urban flora and fauna, within, upon urban greenspace, vegetated areas and water bodies

Biodiversity in urban areas provides a number of ecosystem service, which are important for maintaining urban sustainability

providing, regulating, supporting,cultural

1. What they are

Urban biodiversity

Human well-being

Urban Ecosystem

services

Motivations

eg. vegetation cover or NPP

eg. flood prevention, production

eg. benefits, income

2. Why to protect

The relationship between ecosystem services and human well-being (MA, 2003)

Eco-city planning new-type urbanization

Eco-compensation

Green GDP Ecological civilization

Sponge city

Countermeasures in China 3. How to protect

Eco-compensation

Countermeasures in China 3. How to protect

Environmental Protection Law of the People’s Republic of China (2014 Revision)

Artical 31: establish and improve the system of compensation for ecological protection.

increase national financial transfers to the reserve guide regional governments in beneficial area and conservation area to conduct the ecological protection compensation: negotiation or market rules

balanced regional development

Eco-compensation

Countermeasures in China 3. How to protect

5 major fields

Watershed :

trans-boundary/trans-region watershed eco-compensation;

drinking water source area

Forest：compensation fund Grassland：compensation fund National Ecological Function Zones：financial transfer Mineral resources exploitation：security payment

urban eco-compensation

Eco-compensation

A kind of institutional

arrangement to protect

environment by adjusting the

stakeholders’ interests based

on the ecosystem value,

ecological protect cost and

opportunity cost.

VS PES

A voluntary transaction where a well-defined ES (or a land-use likely to secure that service) is being bought by a (minimum one) ES buyer from a (minimum one) ES provider if and only if the ES provider secures ES provision. （Wunder，2005）

Eco-compensation PES

purpose: to improve the ecosystem service

theory basis: ecosystem services are public goods

internalize the externality of ecosystem services

scope object: actions affected ecosystem services

method: adjust stakeholders’ economic behavior

destroyer pay compensation fee

beneficiaries pay compensation fee

protectors accept compensation fee

protectors provide the ecosystem services

similarities

Eco-compensation

a project

voluntary, negotiated

eco-service trade-off

market-oriented

in money (fee)

mainly applied in watershed ecological protection

PES

a policy or institution

stated, in law and regulations

eco-service internalization

government-oriented

in money or in kind

applied widely, in 5 major fields’ ecological protection

differences

Eco-environmental externalities analysis

Stakeholder analysis

Ecological compensation standard

Ecological compensation mode

Specific ecosystem service types

Ecosystem services valuation

Actual situation

Fig. the ecological compensation framework based on ecosystem service

Urban water supply

Eco-compensation mechanism

ecosystem service foundation

guidance

Beijing, Miyun

Reservoir

Wuyishan

City, drinking

water source Case 2

Case 3

Case 1

Xiamen City,

a reservoir

project

Miyun Reservoir located in the county

north, where is 14km from Miyun

county town and 90km from downtown

of Beijing.

It is an important drinking water source

in Beijing, about 70% area of which is

water source preserve.

The preserve area is partitioned into

three levels. Miyun Reservoir Wetland

has been listed as the national

important wetland and the biodiversity

preserve.

Case 1: on Miyun reservoir protection in Beijing, China

Fig. the map of Miyun

Reservoir Preserve

Chinese government has paid high attention to water resource

protection and proposed “The strictest water resources management

system” in 2012, in which strengthened protection of drinking water

sources was re-emphasized.

Miyun County has devoted much effort and ample funds into water

source protection for years. At the same time, local residents have

encountered dilemmas because of restrictions on industrial

development, forestry planting, and fisheries, among other economic

activities.

There is an urgent need for an ecological compensation policy in the

Miyun Reservoir conservation area to promote its social development.

Case 1: on Miyun reservoir protection in Beijing, China

Case 1: on Miyun reservoir protection in Beijing, China

Not all stakeholders are willing to protect ecosystem services

Eco-compensation to adjust stakeholers’ interests

Perspective: ecosystem service protection

Water supply

Water conservation

Flood control

biodiversity

Air quality regulation

Residents in conservation area

Water users

Water company

government

Eco-compensation

ecological

Intensify relationship

Fig. the relationship of stakeholders in drinking water source eco-compensation

Water source’s

residents

Pollution

management

water saving

agriculture

“Green to Green”

project

afforestation

…

Protection

eco-environmental

impact

Water supply

ecosystem

service

Water supply

company

Services’

beneficiaries

（WTA） （WTP）

Eco-compensation

mechanism

Determine the amount of compensation

Case 1: on Miyun reservoir protection in Beijing, China

The results showed that the average value of Miyun Reservoir

residents’ WTA was 2142 RMB/family/yr. The income level,

location and the perceiving of environmental protection were the

key factors influenced the WTA value.

Eco-compensation standard

Stakeholders’ corrodination Ecological compensation for dringking water conservation

Stakeholders’ willingness

Eco-compensation fee = (WTP, WTA)

Case 1: on Miyun reservoir protection in Beijing, China

Case 1: on Miyun reservoir protection in Beijing, China

The contribution that eco-compensation made to Miyun reservoir ecosystem service

additionality Eco-

service

level

Start point Time

(1) Static baseline

with eco-compensation

without eco-compensation

Location of Wuyishan City, China.

Wuyishan City is located

in the northwest of Fujian

Province, China.

It is famous of Mount

Wuyi, the largest existing and

best-preserved subtropical

native forest ecosystem.

Thus, the ecological

construction is the most

important in its eco-city

planning.

Case 2: on drinking water conservation in Wuyishan City, China

Case 2: on drinking water conservation in Wuyishan City, China

Not all ecosystem services can be trade-

off in market

Eco-compensation to internalize the externality

Perspective: ecosystem service trade-off

land owners’ benefit

Water users’ benefit

Farming or grazing Forest protection Eco-compensation

Case 2: on drinking water conservation in Wuyishan City, China

Farmer

Forestland owner

cultivated land

Commercial forest

Ecological

forestDrinking water

sourceWater

companyBeneficiary

Payment direction

Fig. The correlative chain in payment for ecosystem services in drinking water source reserve

Providing service

Regulating service

trade-off

Perspective: ecosystem service trade-off

The results showed that the opportunity cost of protectors was 8. 977

million RMB in 2005; the extra water fee would be 0.07yuan RMB/(t·a) in

15 compensatory years.

Eco-compensation standard

Case 2: on drinking water conservation in Wuyishan City, China

Ecosystem services trade off Ecological compensation for drinking water conservation

Opportunity cost method

Eco-compensation fee = commercial forest income +

cultivated land income

additionality

Eco-

service

level

Start point Time

with eco-compensation

without eco-compensation

Case 2: on drinking water conservation in Wuyishan City, China

(2) Improving Baseline

The contribution that eco-compensation made to drinking water ecosystem service

Lianhua Reservoir was build in Xiamen for

guaranteeing the water resource for the surrounding residents.

However, the reservoir has inudated 471.6hm2 land-use, including

part of grass land and forest land. Thus it degraded the local

ecosystem service level.

In order to compensate the ecological loss in reservoir project and

protect the new water conservation ecological service, an eco-

compensation for a reservoir project in Xiamen was established.

Case 3: on reservoir project in Xiamen, China

Fig. Eco-compensation of reservoir project based on ecosystem service valuation

•Ecological protection

input

Reservoir project

•Ecosystem services

Output

natural value:

water conservation biodiversity

social value: habitat job

economic value: food production tourism

Case 3: on reservoir project in Xiamen, China

Perspective: ecosystem service value

The total ecosystem services value was estimated 1.3 billion RMB.

As the beneficiaries, the citizens enjoyed mainly from the service

of water conservation, which could be the basis of the standard

of extra water fee. The rest compensation may get from

government tax.

Eco-compensation standard

Ecosystem services value Ecological compensation for

reservoir conservation

Ecosystem service valuation

Eco-compensation fee = water conservation service value

Case 3: on reservoir project in Xiamen, China

Case 3: on reservoir project in Xiamen, China

The contribution that eco-compensation made to reservoir ecosystem service in Xiamen

additionality Eco-

service

level

Start point Time

with eco-compensation

without eco-compensation

(3) Deteriorating Baseline

Eco-compensation on urban water resource area

Coordinate the ecological and

economic benefit

Identify ecosystem

service value

Adjust human ecological protection behavior

Improve ecosystem service

Summary 3. How to protect

Other related work

Green GDP

Ecological infrastructure

(for government’s policy )

(for Eco-city planning)

Wei Jin, LinyuXu*. Modeling a policy making framework for urban

sustainability, Ecological Economics, 2009 ,68: 2938–2949 (SCI)

Linyu Xu*, Bing Yu, Yang Li. Ecological compensation based on willingness to

accept for conservation of drinking water sources. Frontiers of Environmental

Science & Engineering, 2015, 9(1): 58-65 (SCI)

LinyuXu*, Bing Yu, Wencong Yue, Xiaodong Xie. A Model for Urban

Environment and Resource Planning Based on Green GDP Accounting

System, Mathematical Problems in Engineering, 2013

doi:10.1155/2013/692103(SCI)

Huang, Yajing, Linyu Xu, and Hao Yin. "Dual-Level Material and Psychological

Assessment of Urban Water Security in a Water-Stressed Coastal

City." Sustainability. 2015,7(4): 3900-3918 (SCI)

Bing Yu, LinyuXu*. The Individual WTA Changing Analysis for Eco-

Compensation Construction in Water Source Conservation Area, Advanced

Materials Research. 2013,779:1437-1440 (EI)

Some related papers

Yang Z F, Han X, Xu L Y, Yu B. An accounting model for watershed

ecological compensation to address water management conflicts. Journal

of Environmental Accounting and Management, 2013, 1(3): 229 –247

LinyuXu*, Bing Yu, WencongYue. A method of green GDP accounting

based on eco-service and a case study of Wuyishan, China, Procedia

Environmental Sciences, 2010, 2:1865-1872

LinyuXu, Zhifeng Yang, Lei Shuai et al. Eco-compensation of Reservoir

Project based on Ecosystem Service Function Value. China Population,

Resources and Environment. 2006, 16(4): 125-128 (in Chinese)

Wencong Yue, LinyuXu. Study on the Accounting Methods of Green GDP

Based on Ecosystem Services. Ecological Economy (China). 2008(9): 50-53

(in Chinese)

Xu Zhao, Zhifeng Yang, Linyu Xu. Study and Application on the Payment

for Ecological Services in Drinking Water Source Reserve. Acta Ecologica

Sinica. 2008 28(7):3152-3159 (in Chinese)

Some related papers

Linyu Xu

Email: xly@bnu.edu.cn