The adaptation of land-use patterns is an essential aspect of minimizing the inevitable impact of climate change at regional and local scales; for example, adapting watershed land-use patterns to mitigate the impact of climate change on a region’s hydrology. The objective of this study is to simulate and assess a region’s ability to adapt to hydrological changes by modifying land-use patterns in the Wu-Du watershed in northern Taiwan. A hydrological GWLF (Generalized Watershed Loading Functions) model is used to simulate three hydrological components, namely, runoff, groundwater and streamflow, based on various land-use scenarios under six global climate models. The land-use allocations are simulated by the CLUE-s model for the various development scenarios. The simulation results show that runoff and streamflow are strongly related to the precipitation levels predicted by different global climate models for the wet and dry seasons, but groundwater cycles are more related to land-use. The effects of climate change on groundwater and runoff can be mitigated by modifying current land-use patterns; and slowing the rate of urbanization would also reduce the impact of climate change on hydrological components. Thus, land-use adaptation on a local/regional scale provides an alternative way to reduce the impacts of global climate change on local hydrology.

Fallowing with green fertilizer can benefit agricultural ecosystem services (AES). Farmers in Taiwan do not implement fallow practices and plant green fertilizer because the current subsidy level (46,000 NT$ per ha) is too low to manage fallowing. This paper defines the objective of government agriculture policy or the farmer's objective as maximization of farm productivity, approximated to the value of social welfare and AES. Farms, which do not follow proper fallowing practices, often have poorly maintained fallow land or left farmland abandoned. This results in negative environmental consequences such as cutworm infestations in abandoned land, which in turn can affect crops in adjacent farmlands. The objectives of this study are twofold. First, it determines the proper fallowing subsidy based on the concept of payment for ecosystem services to entice more farmers to participate in fallowing. Second, it simulates the benefit of planting green manure in fallow land to the supply of AES based on the rate of farmers who are willing to participate in fallow land practices and essential parameters that can affect soil fertility change. The approach involves a series of interviews and a developed empirical model. The value of AES when the rate of farmer participation is 100% represents a 1.5% increase in AES (448,317,000 NT$) over the value at the current participation rate of 14%. This study further concludes that the appropriate fallowing subsidy has a large positive impact on AES and social welfare (e.g., benefit from food and biofuel supplies) and is seen as a basis of ecological governance for sustainable agro-ecosystems.

This paper examines the possibility of green fertilizer fallowing supporting eco (logical)-economicdecision-making in farmland management. Using scenario analysis and linear programming as research methods, this paper examines farmland allocations and fertilizer use in Taiwan under different economics perspectives and fallow subsidy rates. It is concluded that in agriculture development, reconciliation between the pursuit of profit and environmental sustainability is possible. However, it is not suggested that this reconciliation be achieved via high-level fallow subsidies. Rather, it is critical that the ecological economics view of decision-making be employed in farmland management.