A Model of Horizontal and Vertical Allocation of Eco-Compensation Responsibility Among Administrative Areas: A Study Based on Ecosystem Services Value Density

Abstract

The implementation of eco-compensation schemes demands large capital investment. Therefore, the raising and allocation of funds is critical to the smooth operation of an eco-compensation mechanism. However, the majority of studies on eco-compensation dwell on the development of compensation standards and the allocation of compensation funds, with very few studies considering the allocation of compensation responsibility among multiple compensation providers. Choosing Zhongshan as a case, this paper explores how to reasonably allocate the responsibility among the compensation providers in case of a demand for larger compensation due to any changes in the eco-compensation standards, so as to successfully raise the required funds for compensation. In accordance with the "Beneficiary Pays Principle", and for the purpose of ensuring the successful raising of the compensation funds, this paper constructs a model comprising three ecocompensation providers, including the provincial and municipal government as well as the towns receiving the spillover effect of ecosystem services provided by other townships. After analyzing the spatial distribution of ecosystem services, it further builds a model of compensation responsibility allocation (CRA) among townships in connection with regional ecosystem services value density and the gap between demand and supply of ecosystem service value. At the end, the paper simulates the results of CRA among the three eco-compensation providers in Zhongshan under five scenarios.