Analysis of standard accounting method of economic compensation for ecological pollution in watershed

With rapid development of social industry and agriculture, there is an increasing demand for water resources in a watershed, which leads to a series of serious problems in the watershed such as water resource shortage, water environment deterioration, water resource pollution, etc. This paper builds an econometric model of economic loss due to water pollution in a watershed based on the basic process of standard water pollution compensation calculation of economic loss. The econometric model is used to calculate the amount of compensation for economic loss due to water pollution; a mathematic model method of water environment is applied to calculate the degree of effect on the lower reaches; thus the proportion of the impact on the areas in the lower reaches to overall impact is obtained. The amount of compensation that should be borne by all areas is obtained in combination of amount of compensation for water pollution. Empirical analysis is carried out by taking the Taihu Basin for example, and the standard compensation and the amount of compensation for the economic loss caused by water pollution between different areas along the Jiangnan Canal in the Taihu Basin are defined, which provides scientific and theoretical bases for standard calculation of the water pollution compensation. This provides a theoretical basis for solving the problem of water pollution in the watershed and the contradiction in the development of the watershed, and realizing social equity and harmonious development.