Eco-compensation policies and mechanisms in China

Review of European Community and International Environmental Law

Volumn 17, Issue 2, 2008, Pages 234-242

  Liu, Guihuan ^a   Wan, Jun ^a   Zhang, Huiyuan ^a   Cai, Lijie ^b  

^a Chinese Academy for Environmental Planning (CAEP)   (China)

^b Secretariat of the Convention on Biological Diversity   (Canada)

Author keywords

[No Author keywords available]

Indexed keywords

ECONOMIC GROWTH; ENVIRONMENTAL POLICY; ENVIRONMENTAL POLITICS; FUTURE PROSPECT; POLICY IMPLEMENTATION; STATE ROLE;

ASIA; CHINA; EURASIA; FAR EAST;

EID: 49349109710     PISSN: 09628797     EISSN: 14679388     Source Type: Journal    
DOI: 10.1111/j.1467-9388.2008.00600.x     Document Type: Article

References (37)

1. Task Force on China's Eco-Compensation Mechanisms and Policies (under China Council for International Cooperation on Environment and Development), Studies on China's Eco- Compensation Mechanisms and Policies (Beijing Sciences Press, 2007), at 75-80.
2. Z. Guotai et al., 'Theory and Practice of Eco-compensation in China', 15:6 China Journal of Environmental Sciences (1995), 413, at 418.
3. W. Jinnan et al., 'Eco-Compensation Policy Assessment and Exploration of Eco-Compensation Frameworks', in Proceedings of International Workshop on Eco-Compensation Mechanisms and Policy Design (China Environmental Sciences Press, 2006), 13, at 17.
4. See Premier Wen Jiabao's opening speech at the Sixth National Conference on Environmental Protection held in April 2006, Implementing Comprehensively Vision of Scientific Development and Speeding up the Establishment of an Environmentally Friendly Society', available at: .
5. State Council Decisions on Implementing Scientific Development Vision and Strengthening Environmental Protection (State Council Order 2005-39, 13 December 2005), Decision 23, 'Promoting Economic Polices Favourable to the Environmental Protection', available at: .
6. The Eleventh Five-Year Plan for Social and Economic Development of China (approved by the fourth session of the Tenth National People's Congress on 14 March 2006), Chapter 23: Conserving and Recovering Natural Ecology'.
7. See the 2003 Chinese Government Budget Breakdown, which was formulated by the Ministry of Finance of China (this is an unpublished source and is quoted here as an indication of the level of financial support provided by the Chinese Government to ecological conservation).
8. Z. Peiyan, Report on Western China Development (China Water Resources and Hydropower Press, 2003), at 123-148.
9. Provisional Rules Concerning Incentives for Ecological Conservation of Zhejiang Province of 2004 (Zhejiang Province, 2004).
10. Z. Huiyuan et al., Strategic Studies on Environmental Protection in Guangdong Province (China Environmental Sciences Press, 2007), at 358-361.
11. H. Zhifu and Z. Hongmin, 'Practice of and Reflections on Eco- Compensation in Zhejiang Province', in W. Jinnan et al., Proceedings of International Workshop on Mechanisms and Policy Design for Eco-Compensation (China Environmental Sciences Press, 2005), at 265-267.
12. W. Jun et al., 'Assessment of China's Policy for Eco- Compensation and Initial Studies on Policy Framework', 18:2 Environmental Science Studies (2005), at 1-8.
13. Provisional Rules Concerning Management of State Bonds Projects for Rural Biogas Construction (Ministry of Agriculture and the National Development and Reform Commission, 2003).
14. Rules Concerning Management of National Forest Ecological Benefits Compensation Fund (Ministry of Finance and the State Forestry Administration, 2004).
15. Provisional Rules Concerning Management of National Funds for Rural Flood Control Projects (Ministry of Finance and the Ministry of Water Resources, 2005).
16. A Ten-Year Plan for Returning Farmland to Forest and Grass Land (1998-2007), developed by the State Forestry Administration together with all relevant government departments (this plan has been extended for another 10 years).
17. Z. Meihua, Theory and Practice of Returning Farmland to Forests and Grassland (China Environmental Sciences Press, 2005), at 64-76.
18. State Council Order 672 of 2002 on Regulation Concerning Returning Farmland to Forest Land.
19. State Forestry Administration of China, A Summary Report on Project of Natural Forests Protection (State Forestry Administration of China, 2004), available at: .
20. Ibid.
21. Plan for Controlling Sources of Sandstorms in Beijing and Tianjin (State Forestry Administration, 1999).
22. Margin external cost is part of margin opportunity cost, which is composed of three parts: Margin production cost, margin user cost and margin external cost. Margin external cost can be covered through compensation or taxation or other means.
23. See Z. Guotai et al., n. 2 above.
24. Department of Nature Conservation of State Environmental Protection Administration, Theory and Practice of Eco-Compensation in China (China Environmental Sciences Press, 1995), at 21-25.
25. Y. Chaofei, 'Government Supervisory Role under Market Economy to Promote Pilot Work in Eco-Compensation', in SEPA, Theory and Practice of Eco-Compensation Fees in China (China Environmental Sciences Press 1995), 17, at 47.
26. Rules Concerning Management of the Environment Fund for the Min River Basin (Department of Finance and the Department of the Environment of Fujian Province, 2005).
27. See H. Zhifu and Z. Hongmin, n. 11 above. The main content of the agreement is available at .
28. L. Guihuan et al., 'Chinese Policies and Practice of Payments for Ecological Services in Watersheds', 2 Chinese Journal of Population, Natural Resources and Environment (2008), 1, at 36-43.
29. In all the cases of transfer of development opportunities in Zhejiang Province, usually cities or counties located in the lower reaches of a river provide space or land for factories or businesses from the upper reaches which are otherwise established there and cause pollution to the river. By returning the taxes collected from these factories and businesses to the upper reaches, the lower reaches compensate the upper reaches for sacrificing their development opportunities to maintain the good environmental quality and ecological integrity of the whole river basin.
30. Z. Hongmin, 'Practice of and Reflections on Eco-Compensation Mechanisms', 2 Environmental Protection (2005), 41.
31. Ibid., footnote 30.
32. Ibid., footnote 30.
33. T. Baiwen, 'Frameworks for Establishing Eco-Compensation Mechanisms in Hangzhou', 7A Environmental Protection (2006), 41.
34. L. Xiaoyun, Eco-Compensation Mechanisms: Roles of Market and Government (China Social Sciences Documentary Press, 2007), at 249-255.
35. 'Beijing and Hebei Signs Agreement for Joint Efforts to Conserve Ecology', China Environment News (24 October 2006). In addition to the water use, the agreement also covers cooperation in energy development and industrial restructuring.
36. Z. Huiyuan and L. Guanhui, 'Design of Eco-Compensation Mechanisms in China's River Basins', 10 Environmental Protection (2006), 49, at 54.
37. The need to establish eco-compensation mechanisms has been recognized by many provinces, in particular those faced with serious environmental or ecological issues caused by development activities elsewhere, and having financial difficulties in addressing them. Delegates of annual meetings of the National People's Congress and the National Political Consultative Committee also pay much attention to the issues.