Institutional Design and Performance of Markets for Watershed Ecosystem Services: A Systematic Literature Review

Broadening Benefits and Anticipating Tradeoffs with a Proposed Ecosystem Service Analysis Framework for the US Army Corps of Engineers

Would-be adopters of ecosystem service analysis frameworks might ask, 'Do such frameworks improve ecosystem service provision or social benefits sufficiently to compensate for any extra effort?' Here we explore that question by retrospectively applying an ecosystem goods and services (EGS) analysis framework to a large river restoration case study conducted by the US Army Corps of Engineers (USACE) and comparing potential time costs and outcomes of traditional versus EGS-informed planning. USACE analytic methods can have a large influence on which river and wetland restoration projects are implemented in the United States because they affect which projects or project elements are eligible for federal cost-share funding. A new framework is designed for the USACE and is primarily distinguished from current procedures by adding explicit steps to document and compare tradeoffs and complementarity among all affected EGS, rather than the subset that falls within project purposes. Further, it applies economic concepts to transform ecological performance indicators into social benefit indicators, even if changes cannot be valued. We conclude that, for large multi-partner restoration projects like our case study, using the framework provides novel information on social outcomes that could be used to enhance project design, without substantially increasing scoping costs. The primary benefits of using the framework in the case study appeared to stem from early comprehensive identification of stakeholder interests that might have prevented project delays late in the process, and improving the communication of social benefits and how tradeoffs among EGS benefits were weighed during planning.

Watershed Horizontal Ecological Compensation Policy and Green Ecological City Development: Spatial and Mechanism Assessment

Green ecological development has become an inevitable choice to achieve sustainable urban development and carbon neutrality. This paper evaluates the level of green ecological city development in the Xin'an watershed as measured by green total factor productivity (GTFP), analyzes the direct and spatial effects of the Watershed Horizontal Ecological Compensation policy on GTFP, and further examines the moderating effect of the Research and Development (R&D) incentives, industrial structure, and income gap. This paper conducts difference-in-differences (DID) and spatial regression analysis on 27 cities from 2007 to 2019. The results show that GTFP progresses to varying degrees across cities over time, especially in the pilot cities. Crucially, the Watershed Horizontal Ecological Compensation policy significantly improved GTFP, although the effect was slight. Interestingly, the increase in GTFP in pilot cities that implemented the policy spatially suppressed the increase in GTFP in cities that did not implement the policy. Our evidence also shows that the positive effect of the policy is higher in regions with higher R&D incentives and industrial structure upgrading, which indicates that R&D incentives and industrial upgrading are crucial. In comparison, the income gap has not made the expected negative adjustment effect under the Chinese government's poverty alleviation policy. However, the positive policy effect is heterogeneous in the downstream and upstream pilot cities. The "forcing effect" of the policy on the downstream cities is more favorable than the "compensating effect" on the upstream cities. Therefore, policymakers should pay more attention to ensuring the effectiveness of the Watershed Horizontal Ecological Compensation policy in enhancing GTFP as a long-term strategy to guarantee the sustainability of green ecological development in Chinese cities.

Watershed Eco-Compensation Mechanism in China: Policies, Practices and Recommendations

Watershed eco-compensation (WEC) is considered a significant environmental policy instrument for watershed ecological protection and management. However, in the legislation and practice of eco-compensation in China, the development of the WEC mechanism is still in the initial stages. In this paper, the institutional opportunities and challenges of WEC are analyzed from the existing policies, laws, and economical instruments. Theoretically, WEC in China has seen a combination of punitive-based “Watershed Ecological Damage Compensation (WEDC)” and incentive-based “Watershed Ecological Protective Compensation (WEPC)”. Through a comparative analysis of domestic and foreign watershed compensation practices, the results demonstrate that most of China’s WEC projects have an insufficient legal basis, a single compensatory subject, insufficient compensation funds, and an imperfect market-oriented compensation mechanism. To improve watershed eco-compensation in China, it is recommended to strengthen legislation, select diversified eco-compensation approaches, and establish a market-based and systematic eco-compensation mechanism for watersheds.

Ecological Safety Assessment and Analysis of Regional Spatiotemporal Differences Based on Earth Observation Satellite Data in Support of SDGs: The Case of the Huaihe River Basin

Terrestrial ecosystems provide a variety of benefits for human life and production, and are a key link for achieving sustainable development goals (SDGs). The basin ecosystem is one type of terrestrial ecosystem. Ecological security (ES) assessments are an important component of the overall strategy to achieve regional sustainable development. The Huaihe River Basin (HRB) has the common characteristics of most basins, such as high population density, a rapidly developing economy, and many environmental problems. This study constructed an ES evaluation system by applying a pressure-state-response framework as an assessment method for the sustainable development of basins. Taking the HRB as an example, this study determined the ES status of the region from 2001 to 2019 and analyzed crucial factors for any variation observed by combining remote sensing and climate data, relevant policies, and spatial information technology. The results highlight the importance of reserves and the negative impact of urban expansion on ES. Additionally, the enactment of policies had a positive impact on ES, whereas precipitation had a negative effect on ES in most areas of the HRB. Based on these results, the government should strengthen the protection of forests, grasslands, and wetlands and improve water conservation facilities. This study provides guidance for the subsequent economic development, environmental protection, and the achievements of SDG 15 in the HRB.