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Study of Gradual Institution in River Basin Ecological Compensation

Author: GuoZhiJian
Tutor: GeYanXiang
School: Shandong Agricultural University
Course: Industrial Economics
Keywords: river basin gradual institution of compensation Principal-agent theory water quality water quantity
CLC: X196
Type: Master's thesis
Year: 2013
Downloads: 31
Quote: 0
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Abstract


In river basin ecological compensation of China´╝îinter-regional ecological compensa-tion is a common problem, in Which the determination of compensation subject andcompensation standard is the main part. Given the fact that the negative externalities takenby the other areas in the use of ecological resources can not be internalized througheconomic means, we put forward gradual institution of river basin ecological compensation.In the gradual situation of River basin ecological compensation we divide it into someregions based on the administrative units and only consider the compensation betweenadjacent regions, then calculate the amount of compensation according certain indicators. Inthis way, we can effectively reduce the transaction costs of river basin ecologicalcompensation.In the ecological compensation of river basin, the confirming of compensation standardis a key part. In this study we confirm the standard based on input costs, and select waterquality, water volume as the indicators. Select factors affecting water quality (includingCOD, ammonia nitrogen, etc.), use analytic hierarchy process to determine the importanceof the impact of different factors of water quality, and then determine the compensationamount according to the water quality evaluation coefficient based on water quality indifferent areas. Calculate the costs of protecting the water quantity; confirm thecompensation amount based on the measuring of water quantity in different areas. Finallyconfirm the amount taking the two indicators into consideration.Take the DaWenHe as an example to measure the amount of gradual ecologicalcompensation. First, we select the PH, oxygen consumption, ammonia nitrogen and toxicsubstances as the evaluation index. Basing on the AHP we can determine the weights ofthese factors are8.79%,23.59%,23.66%,43.96%, and then calculate the amount betweenLaiWu and TaiAn based on water quality indicators which is222000yuan; the unit cost tokeep water is0.0676yuan per cubic meter, the annual runoff is171.7million cubic meters,the amount between LaiWu and TaiAn based on water quantity indicators is114900yuan.Finally take comprehensive consideration, TaiAn should compensate336900yuan toLaiWu.In gradual institution of river basin ecological compensation, the whole basin can bedivided into regional, municipal and county area at the provincial level according to thescope of administrative unit. There are principal-agent relationships between the superior government and the inferiors. Analyzed the principal-agent relationships in Singledimension and multitask, we can found that sharing risk is the best way of efficiency andfairness; choose the water quality and quantity as index is reasonable; The implementationof river basin ecological compensation needs auxiliary measures to weak the workincentives of economic growth, and so on. The research of principal-agent mechanism inriver basin ecological compensation helps to optimize the incentive mechanism and promotethe implementation of river basin ecological compensation.The gradual institution of river basin ecological compensation is not an isolated system;it needs many auxiliary measures to guarantee its smooth implementation needs. Theauxiliary measures mainly includes the compensation fund management mechanism, theconsultation of upstream and downstream of the platform and the arbitration mechanism, theconstruction of legal system construction and social participation mechanism, etc.

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CLC: > Environmental science, safety science > The basic theory for the Environment and Science > Environmental Economics
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