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

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  • Xiaoyu Song

    (Northwest Institute of Eco-Environment and Resources, Chinese Academy of Sciences, Lanzhou 730000, China
    Field Research Base of Land Use in Northwest China, Ministry of Natural Resources, Lanzhou 730000, China
    These authors contributed equally to this work and share first authorship.)

  • Yuqing Liu

    (School of Urban and Planning, Yancheng Teachers University, Yancheng 224007, China
    These authors contributed equally to this work and share first authorship.)

  • Fanglei Zhong

    (School of Economics, Lanzhou University, Lanzhou 730000, China)

  • Xiaohong Deng

    (Institute of County Economic Development, Lanzhou University, Lanzhou 730000, China
    Institute of Rural Revitalization Strategy, 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)

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.

Suggested Citation

  • Xiaoyu Song & Yuqing Liu & Fanglei Zhong & Xiaohong Deng & Yuan Qi & Jinlong Zhang & Rong Zhang & Yongnian Zhang, 2020. "Payment Criteria and Mode for Watershed Ecosystem Services: A Case Study of the Heihe River Basin, Northwest China," Sustainability, MDPI, vol. 12(15), pages 1-12, July.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:15:p:6177-:d:392610
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    References listed on IDEAS

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    Cited by:

    1. Huang, Dayan & Liu, Chengyi & Yan, Zehao & Kou, Aiju, 2023. "Payments for Watershed Services and corporate green innovation," International Review of Economics & Finance, Elsevier, vol. 87(C), pages 541-556.

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