Study on Consistent Agricultural Compensation Standards for Ecosystem and Ecological Value

Niu Zhiwei (牛志伟)* and Zou Zhaoxi (邹昭晞)

China Institute of Industrial Economics, Capital University of Economics and Business (CUEB), Beijing, China

Abstract: Chinese and international studies on agricultural ecological compensation standards fall into two categories: While some focus on the cost of ecological protection, others proceed from the value of ecological services. Cost and value are two aspects of an integrated input-output system, but most existing studies on both types of compensation standards are independent of each other. Drawing upon the reasonable elements from both types of studies to overcome each other’s one-sidedness, this paper has created a “model of consistent compensation standards for the ecosystem and ecological value,” integrating the research approaches for both types of compensation standards under the same analytical framework. Through the application and analysis of this model, this paper has verified the model’s theoretical and practical significance in correcting the one-sidedness of each type of research. The principles and methodologies for creating the model may be further extended to research on agricultural ecological compensation standards under different conditions. In some circumstances, the ability of relatively redundant resources to create ecological value is overlooked. To address this problem, this paper employs a linear programming (LP) sensitivity analysis instrument to correct the model’s initial optimal solutions and arrive at consistent compensation standards that satisfy the consistency between ecosystem and ecological value, thus perfecting the theoretical and methodological system created by this paper for research on agricultural ecological compensation standards.

Keywords: agricultural ecological compensation standards, ecosystem, ecological value, consistency

JEL Classification Code: Q57

DOI: 10.19602/j.chinaeconomist.2021.07.04