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Image of Journal of Applied Nonlinear Dynamics
ISSN:2325-6192 (print)
ISSN:2325-6206 (online)
Journal of Environmental Accounting and Management
António Mendes Lopes (editor), Jiazhong Zhang(editor)
António Mendes Lopes (editor)

University of Porto, Portugal

Email: aml@fe.up.pt

Jiazhong Zhang (editor)

School of Energy and Power Engineering, Xi'an Jiaotong University, Xi'an, Shaanxi Province 710049, China

Fax: +86 29 82668723 Email: jzzhang@mail.xjtu.edu.cn

An AccountingModel for Watershed Ecological Compensation to Address Wa-ter Management Conflicts

Journal of Environmental Accounting and Management 1(3) (2013) 229--247 | DOI:10.5890/JEAM.2013.08.002

Zhifeng Yang; Xi Han; Linyu Xu; Bing Yu

State Key Joint Laboratory of Water Environment Simulation, School of Environment, Beijing Normal University, Beijing 100875, China

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Abstract

Watershed ecological compensation is a powerful economic method used to address water management problems. In this study, we established an accounting model for watershed ecological compensa-tion based on STELLA software, using revenue functions to quanti-fy the profits of two cities during water use. The revenue functions included factors such as socio-economic water-use benefit, pollu-tion control cost and environmental externalities in the downstream area. This ecological compensation model can be used to address water-use disputes between upstream and downstream cities in the watershed area. Using the Guanting Reservoir Basin as a case study and considering the profit of each stakeholder, we calculated the payments under different scenarios of water quality and quantity within the provincial trans-boundary section. Our results indicated that (i) when the water quality of the inflow to Beijing (down- stream) is Grade V or IV as defined by the National Water Quality Standard of China, Zhangjiakou (upstream) should pay Beijing 92.04 or 48.19 million Yuan RMB, respectively; (ii) when the water quality of the inflow is Grade II, Beijing should pay Zhangjiakou 53.08 million Yuan RMB.

Acknowledgments

This study was supported by the National Science & Technology Pillar Program, China (No.2012BAC05B02) and National Science Foundation for Innovative Research Group (No. 51121003). The authors gratefully acknowledge this funding support.

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