Blood transfusion or hematopoiesis? how to select between the subsidy mode and the long-term mode of eco-compensation

Abstract

As a long-term mechanism for eco-compensation, the ‘Hematopoiesis-Compensation Policy’ (HCP) such as industrial transformation can effectively improve the operability and efficiency of compensation policy. However, compared with the ‘Transfusion-compensation Policy’ (TCP) such as the cash subsidy, can HCP quickly achieve the goal of eco-compensation? Does HCP require more total investment in compensation funds? This paper takes the Shennongjia National Park System Pilot Zone (SNJNP) as the research area and takes the eco-compensation policy to encourage farmers to return farmland to forest as the research object. We set three different compensation modes of TCP and HCP, and study the compensation scenarios in the next 20 years. The results show that HCP can achieve the purpose of compensation faster than TCP. Although the annual payment of HCP is relatively higher at the beginning, both the annual expenditure and the cumulative expenditure will decrease significantly. Therefore, later annual expenditure and cumulative total expenditure of HCP will be lower than TCP.

Keywords

• payment for Ecosystem Service (PES)
• compensation efficiency
• long-term mechanism
• Shennongjia National Park System Pilot Zone