Toward a National Eco-Compensation Regulation in the People’s Republic of China

The study recognized the need for consideration of numerous issues when developing ecocompensation regulations. These include (i) provision of guidance for determining the ecocompensation rate; (ii) establishing an eco compensation arbitration system to deal with disputes (e.g., in the case of watersheds); (iii) requirement on understanding of actual needs of the beneficiaries (e.g., the need for technical assistance and other types of nonmonetary support may be more critical than cash subsidies); (iv) strengthening the supervision, monitoring, and evaluation mechanisms that might otherwise lead to inefficient use of funds; (v) including clauses for independent third-party monitoring of eco-compensation programs; (vi) clarification of property rights; and (vii) inclusion of measures designed to ensure that eco-compensation supports poverty alleviation.