Incentive Measures for Agricultural Nonpoint Source Pollution Control of Farmers Based on Choice Modelling: A Case Study on the Water Source Region of Xin’an River Reservoir

In water governance, the government, downstream residents, and upstream farmers are closely associated stakeholders. The participation willingness of upstream farmers directly bears on the success of environmental policies. Xin’an River Reservoir Water Protection Zone is the second water source region of Hangzhou, China. Taking this region, for example, this paper surveys the willingness to accept compensation of local rice farmers, mainly using Choice Modelling (CM) methodology. This paper assesses the farmers’ willingness of minimum compensation amount to adopt various ecological compensation means and, on this basis, discusses the key factors determining their willingness to accept compensation. It helps to confirm that the farmer participation mainly depends on whether the government could provide satisfactory compensation incentives to cover farmers’ losses. Hence, at the ending of the paper, we call for the relevant departments of the government fully understanding the farmers’ willingness to accept compensation before formulating compensation policies, so that the compensation at least reaches the minimum requirements of farmers. Only in this way could the water source region achieve the optimal efficiency in environmental governance.

Assessments of Landowners’ Willingness to Accept Compensation for Participating in Forest Certification in Shandong, China

Achieving sustainable management of forests in China is becoming increasingly important with more awareness and realization of the importance of forests in environmental protection. Forest certification, a market-based instrument to promote sustainable forest management, has been recognized by many countries including China. While landowners’ perception and perspective regarding this voluntary program have been well-documented in the literature, how to motivate and incentivize landowners to participate in forest certification remained understudied questions. With the face-to-face survey of landowners in Shandong, China, this study analyzed landowners’ willingness to accept compensation for participating in forest certification. Results indicated that the average accepted compensation in terms of increased timber price was about RMB 120 (~USD 17.6)/m3 to have their forests enrolled in certification programs. Results from multiple regression showed that the level of such compensation required for participation in certification was influenced by forestland size, owner demographics, certification-program requirements, and importance placed on timber production. These findings would inform policy-makers in designing compensation-related policies and establish incentive-based mechanisms to motivate forest landowners to participate in forest certification programs in China.

Assessments of Landowners’ Willingness to Accept Compensation for Participating in Forest Certification in Shandong China

Achieving sustainable management of forests in China is becoming increasingly important with more awareness and realization of the importance of forests in environmental protection. Forest certification, a market-based instrument to promote sustainable forest management, has been recognized by many countries including China. While landowners’ perception and perspective regarding this voluntary program have been well-documented in literature, how to motivate and incentivize landowners to participate in forest certification remained under-studied questions. With the face-to-face survey of landowners in Shandong, China, this study analyzed landowners’ willingness to accept compensation for participating in forest certification. Results indicated that landowners average accepted compensation, in terms of increased timber price, was about RMB120 (~$17.2)/m3 to have their forests certified. Results from multiple regression showed that the level of such compensation required for certification adoption was influenced by ownership size, owners’ demographics, certification program requirements, as well as importance placed on timber sale. These findings would inform policy-makers in designing compensation-related polices and establish incentive-based mechanisms to motivate landowners participate in forest certification programs in China.

Rural Households’ Willingness to Accept Compensation Standards for Controlling Agricultural Non-Point Source Pollution: A Case Study of the Qinba Water Source Area in Northwest China

Agricultural non-point source pollution (ANSP) has become one of the main sources of pollution in water source areas. An effective solution to this problem is the use of ecological compensation to encourage rural households to adopt agricultural pollution control measures. This study aims to answer two questions: How much compensation should be given to encourage rural households in water source areas to participate in ANSP control? What factors will influence their participation? In this study, paddy rice planting in water source area has been used as an example aiming to answer these questions. This study used the random parameter logit (RPL) model with survey data from 632 rural households in the Qinba water source area to empirically analyze rural households’ willingness to accept compensation for ANSP control and the influencing factors of this willingness. From this information, the compensation standards for ANSP control in a water source area were calculated. The results show that (1) compensation had a significant incentive effect on rural households’ willingness to control ANSP. The marginal compensation standard for reducing the use of fertilizer and pesticide was $3.40/ha and $2.00/ha, respectively. The compensation standard for not applying chemical fertilizer and pesticide at all was $540.23/ha. (2) There was heterogeneity in rural households’ preference for ANSP control compensation policies. Rural households characterized by younger residents, higher family income, higher perception of the ecological benefits, and higher perception of government policy were more willing to participate in the compensation policy. It is suggested that rural households showed a strong preference for ANSP control policies by considering both of their economic losses and ecological benefits. Our study contributes to the literature by enriching the evaluation method in providing references for the compensation of ANSP control policies