Integrating ecosystem service spillovers and environmental justice in ecological compensation: A pathway to effective ecological protection in China

Abstract

Ecological compensation is an important policy tool for promoting ecological protection and regional coordination. However, heated debates persist concerning the theoretical foundations, compensation standards, methodologies, and funding channels. Built on the theories of ecosystem service spillovers and environmental justice, this study proposes a framework for ecological compensation. Areas where ecosystem services exceed the regional average are defined as spillover zones and thus designated as compensation zones, and accordingly, the standards are determined by the discrepancies in ecosystem service values between the compensation zone and the region. The coastal area of Jiangsu Province was selected as a typical case study. The study reveals that the total ecological compensation area is approximately 3,977.92 km2, with Tier I and Tier II compensation zones accounting for 22.24 % and 77.76 % of the total compensation area, with the compensation standards being RMB364,300 per km2 and RMB218,600 per km2, respectively. Government special funds could only cover 54.60 % of the required compensation. We propose to establish and improve ecological compensation mechanisms based on key ecological function areas, set up a provincial special ecological compensation fund, and establish market-driven compensation mechanisms. The approach proposed in this study is highly operational and applicable to land-based ecological compensation schemes.