Quantification of eco-compensations based on a bidirectional compensation scheme in a water environment: a case study in the Jiangsu Province, China

This study delineates adjustments to the eco-compensation pilot work of the Taihu Lake Basin and the Huaihe River Basin. The number and location of original compensation sites were adjusted based on the characteristics of the river network and of the water pollution status. A bidirectional eco-compensation system based on water quality exceeding multiple was then implemented. Under this scheme, the eco-compensation payments of each city under three different compensation standards were calculated. A suitable unified short-term compensation standard for the whole province is determined among several compensation payment schemes. The results obtained after implementing the most relevant scheme reveal that (1) the bidirectional eco-compensation system is highly flexible and is viable economically, as the payment of fiscal expenditures used to pay eco-compensation is reasonable. (2) In the southern Jiangsu Province, the ratio of pollutant flux at each compensation site to the total regional flux is relatively high and may, therefore, accurately reflect the water quality condition of the main rivers flowing into the Taihu Lake. (3) The ratio of pollutant flux in the northern Jiangsu Province is low, which highlights the need for further improving the number and location of eco-compensation sites, as well as the compensation methods and standards.