Establishment of an eco-compensation fund based on eco-services consumption

Eco-compensation is a type of institutional arrangement that uses economic measures to adjust the relationships among stakeholders in order to conserve and/or sustainably use ecosystem services. The externality of the value of ecosystem services is one of the theoretical bases for eco-compensation. Different types of ecosystem services are consumed by people from different regions. Some are consumed by people living where the services originate, while some are carried by rivers, wind, vehicles or other natural or manmade means to other areas. Thus, the flow and consumption of ecosystem services should be seen as the basis for establishing eco-compensation funds. This paper uses satellite images of the Zhang-Cheng area near Beijing in 2013 to discuss how to establish an eco-compensation fund for stakeholders in this area. Firstly, six important types of ecosystem services in the Zhang-Cheng area were identified based on ecological function zoning, and the value of these ecosystem services was calculated based on ecological pricing methods. Secondly, the field intensity model from physics was used to analyze where Zhang-Cheng area ecosystem services flowed and calculate how much of these services were used by other areas. Thirdly, based on this analysis and calculation, the paper proposes the rates that different stakeholders should invest in the eco-compensation fund, based on their consumption of eco-services.