Ecological Compensation Estimation of Soil and Water Conservation Based on Cost-Benefit Analysis

Soil and water conservation ecological compensation can be simply defined as a monetary payment to offset the environmental loss. An illustration is given in this study describing the payment compensation to water resource conservation and soil losses in Erlongshan reservoir catchment, China. A semi-distributed hydrological SWAT model was applied to establish compensation standard considering six scenarios of land use changes by combined application of remote sensing and geographic information systems. Cost-benefit analysis (CBA) method is applied to evaluate the function of soil and water conservation, of which marginal opportunity cost and market value methods have been explored calculate the cost and benefit of water and soil conservation ecological function from provider and beneficiaries. Finally the ecological compensation of soil and water conservation for different land-use scenarios is calculated incorporating benefit apportion coefficient. The results provide an economically evaluated and market-oriented standard for the study of eco-compensation of environmental services and will be of great benefit to the implementation of soil and water conservation at a mesoscale catchment scale.