Payments for ecosystem services in China: Policy, practice, and progress

The rapid emergence of payments for ecosystem services (PES) schemes in China has been reported widely. However, it seems that the relevant policies and PES practices have not been fully documented. In this study, we provide insights into the overall status of PES schemes in China. We start by introducing the concept of eco-compensation, the equivalent of PES in China, and we describe its initiation and development. We then explore the institutional context upon which PES schemes are based on and we develop a classification system to interpret the different schemes. We employ the concept of PES-like scheme to reconcile divergent views on the scope of PES among researchers and decision makers. Subsequently, we describe the objectives, relevant policies from national to local level, implementation characteristics, funding sources, coverage, payment criteria, and primary effects of the major PES schemes. Broad institutional gaps, scheme overlaps, sole funding source, and the lack of effective tools in monitoring ecological outcomes are identified as major challenges for existing PES schemes. We conclude by proposing to reshape China's PES frameworks and strengthen the market-based PES schemes, as well as scaling scale piloting PES schemes up to address pressing ecological issues in broader ecosystems and areas.