Payment for Enviromental Services Based on Three Environmental Evaluation Methods in Miyun Reservoir River Basin, Beijing, China

2013 ◽  
Vol 726-731 ◽  
pp. 1155-1161
Author(s):  
Hai Xia Zheng

Payment for Environmental Services (PES) has been widely adopted as a solution to compensate upstream water users for providing clean water. However, the size of payments is critical to the success of PES, and the problems of determining the correct price is often critical to the implementation of PES policies. We demonstrate three independent valuation methods to determine the price of the ecosystem service (ES) of water quality in the Miyun Reservoir, the main surface water source for Beijing. The three using valuation methods are: i) Water Resources Benefits Assessment (WRBA), ii) Contingent valuation method (CVM), and opportunity cost of limitation of development rights (OCLDR). We found the value of water quality is lowest using OCLDR, highest with CVM, and the WRBA in-between. We propose OCLDR is used to determine compensation to upstream; WRBA for pricing water transfer; and CVM for payments integrated water quality improvement.

Author(s):  
Devika Krishnan ◽  
Shaharuddin Mohamad Ismail ◽  
Chamhur Siwari ◽  
Sara Kaffashi ◽  
Pushpawani Ramaloo

Forested watershed provides abundant ecosystem services for water users including catchment area protection, flood regulation, provisioning of clean drinking water and climate regulation. However, the value of ecosystem services only partially takes into account by policy makers and indirectly cause overexploitation of natural resources. This study observes the economic role of women in protecting watershed ecosystem by calculating willingness to pay (WTP). Langat Basin is an imperative watershed that supplying fresh water source and other necessities to approximately 1.2 million people within the catchment area. Langat Basin has getting the effect of hasty growth through industrialization and land development actions. Women within Langat Basin has been selected through face to face interview for measure willingness to pay (WTP) towards ecosystem protection. Single Bounded Dichotomous Choice technique in Contingent Valuation Method (CVM) is engaged to calculate WTP of women. Willingness to pay of women in upstream is RM184.28, followed by women in middle stream is RM168.60 and lastly WTP of women in downstream is RM190.16. The willingness to pay women shows that women has potential to be part of ecosystem protection and signal to policy makers to include women in decision making process especially for environmental perspective.


Author(s):  
Haixia Zheng ◽  
Stale Navrud ◽  
Shiran Shen

Payment for Environmental Services (PES) in the watershed has been widely adopted as an important policy instrument to compensate upstream water users for providing water quality improvement for the whole river basin. In this paper, we use three independent valuation methods to determine the price of ecosystem service (ES), particularly water quality, in Miyun Reservoir, the main surface water source for Beijing. We find that the value of water quality is lowest using opportunity cost of limitation of development rights (OCLDR), highest with contingent valuation method (CVM), and water resources benefits assessment (WRBA) gives an in-between value. OCLDR determines the size of subsidies from those that benefit from water quality improvement from upstream. WRBA is a reference for compensation criteria to the upstream government and farmers when water resources are transferred across jurisdictional boundaries. CVM not only captures the direct value of water quality improvement, but also the indirect value of improvement in other ecosystem services as a result of improvement in water quality. Based on the results, we propose a multi-level ecological compensation system for the Miyun Reservoir river basin. We use OCLDR to determine subsides/ compensation to upstream farmers and other suppliers of the ES; WRBA set the price of water transfer; and CVM to figure out the size of payments for integrated water quality improvement.


2014 ◽  
Vol 4 (3) ◽  
pp. 490-498 ◽  
Author(s):  
Steven G. Wright ◽  
Daya Muralidharan ◽  
Alex S. Mayer ◽  
William S. Breffle

The contingent valuation method was used to estimate willingness to pay (WTP) for the operation and maintenance of an improved water source in the villages of Kigisu and Rubona in rural Uganda. The survey was conducted in August 2011 and administered to 122 households out of 400 in the community, gathering demographic information, health and water behaviors, and using an iterative bidding process to estimate WTP per 20 L for a public tap. The data were analyzed using an ordered probit model, which predicts monetary intervals for households' WTP. The model predicts a mean WTP of 356 Ugandan shillings (USD 0.183) per 20 L from a public tap. It was determined that the number of children in the home and the distance from the existing source are significant in influencing household's WTP, while income, age, and gender are not.


Author(s):  
Haixia Zheng ◽  
Stale Navrud ◽  
Shiran Shen

Payment for Environmental Services (PES) in the watershed has been widely adopted as an important policy instrument to compensate upstream water users for providing water quality improvement for the whole river basin. In this paper, we use three independent valuation methods to determine the price of ecosystem service (ES), particularly water quality, in Miyun Reservoir, the main surface water source for Beijing. We find that the value of water quality is lowest using opportunity cost of limitation of development rights (OCLDR), highest with contingent valuation method (CVM), and water resources benefits assessment (WRBA) gives an in-between value. OCLDR determines the size of subsidies from those that benefit from water quality improvement from upstream. WRBA is a reference for compensation criteria to the upstream government and farmers when water resources are transferred across jurisdictional boundaries. CVM not only captures the direct value of water quality improvement, but also the indirect value of improvement in other ecosystem services as a result of improvement in water quality. Based on the results, we propose a multi-level ecological compensation system for the Miyun Reservoir river basin. We use OCLDR to determine subsides/ compensation to upstream farmers and other suppliers of the ES; WRBA set the price of water transfer; and CVM to figure out the size of payments for integrated water quality improvement.


Author(s):  
V. Kerry Smith

The use of survey or contingent valuation methods to estimate an individual's valuation of non-marketed goods, especially environmental resources, has attracted increasing attention in recent years. Initially, research efforts in this area were viewed by a majority of the economics profession with considerable skepticism. However, with the increased need for information on individuals’ valuation of a whole range of environmental resources and limitations on the ability of indirect market-based methods for valuing all of these resources, there has been a substantial increase in the use of contingent valuation methods to provide this information. Indeed, a recent state-of-the-art assessment (see Cummings et al. [1984]) of the contingent valuation method (CVM) has been able to develop a set of reference operating conditions under which it was reasonable to expect the CVM approach would yield estimates with accuracy that was approximately comparable to the indirect methods. Clearly the definition of these conditions is a judgmental one. Nonetheless, it was based on a substantial number of comparative studies evaluating the relationship between CVM and indirect market estimates of the benefits associated with changes in specific environmental resources. Moreover, it does reflect the changing attitude toward the CVM approach. It is therefore particularly appropriate to consider new directions in the development of the contingent valuation method.


2016 ◽  
Vol 16 (3) ◽  
pp. 817-827 ◽  
Author(s):  
Erqi Xu ◽  
Hongqi Zhang ◽  
Guanglong Dong ◽  
Lei Kang ◽  
Xuejiao Zhen

Miyun Reservoir is the main surface source of drinking water for Beijing, China. Water eutrophication has compelled authorities to improve the water quality in its upstream catchment. However, a water-quality survey of the entire catchment was lacking. A total of 52 monitoring sites covering the entire catchment were sampled approximately monthly from July–September 2013, in response to rainfall and runoff. Six water nutrient concentrations were used to characterize the eutrophication, which was relatively severe. The total nitrogen pollution was classified as the worst grade of the water-quality standard. The water quality of Bai River was superior to that of Chao River, while the quality of tributaries was better than that of main rivers. The upstream and downstream reaches of main rivers and small tributaries usually had cleaner water than the middle reaches. The worst pollution mainly appeared in the middle reaches in Hebei Province. Spatial variations in water quality were closely related to land use quantitative characteristics of sub-watersheds. We suggest that a balanced, transparent compensation mechanism focused on Hebei Province would assist to improve water quality.


2013 ◽  
Vol 779-780 ◽  
pp. 1437-1440 ◽  
Author(s):  
Bing Yu ◽  
Lin Yu Xu

Ecological compensation uses economic incentive to address water conservation issues. Stakeholders preference should be considered seriously during the eco-compensation policy making. To that end, the contingent valuation method (CVM) has been widely preferred for its non-market valuation in the process of eco-compensation standard confirmation. In this paper, the research was focused on the changing of individual willingness to accept eco-compensation over years using CVM. With the case study of Miyun Reservoir, China, the changes of residents WTA and key socioeconomic variables were gauged respectively according to two-period investigation in 2008 and 2012. The results showed that the average value of Miyun Reservoir residents WTA was decreasing, and the job and attitude to environment of respondents became the significant predictors of WTA to water conservation during the past 5 years.


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