COMMISSION INTERNATIONALE
DES GRANDS BARRAGES
VINGT TROISIEME CONGRES
DES GRANDS BARRAGES
Brasilia juin 2009
BENEFITS SHARING OF XIN’AN RIVER RESEVOIR AND ECOLOGICAL
COMPENSATION*
Benqing Ruan, Fengran Xu, kai Wang, Chunling Zhang
China institute of water resources and hydropower research, Beijing
CHINA
1.
INTRODUCTION
Xin’an River Basin, located in east China (Figure 1), covers a total area of
about 11674km2, which is about a quarter part of Qiantang River Basin. 6440km 2
of Xin’an River Basin is located in upstream area in Anhui Province, whereas
5234km2 is in the downstream district in Hangzhou City of Zhejiang Province.
Xin’an River Reservoir is located in Chun’an County of Zhejiang Province. It is a
multi-year regulating Reservoir and the biggest hydropower-complex project in
Zhejiang Province. It controls a drainage area of 10442km2, with the average
annual runoff of 10.8 billion m3. Xin’an River flows into the reservoir from Anhui to
Zhejiang with an average annual runoff of 6.53 billion m3, which equals to more
than 68% of the input water to the lake.
Xin’an power station was constructed from 1957 to 1960, with the dam
height of 105m (115m above sea level) and a total storage of 21.6 billion m3. While
the water level reaches 108m above sea level (Normal High Water Level), the
storage is 17.8 billion m3. The install capacity of the power station originally is
662.5 thousand KW, and it was then enlarged to 810 thousand KW from 1999 to
2004. The designed annual energy production of hydroelectric power station is
1.86 billion KW·h, The reservoir boasts 1078 islets, hence it is famous as
1000-Islet (Qiandao) Lake. The 580-square-kilometer lake, over 100 meters in
depth, is 109 times the size of the West Lake in Hangzhou.
Xin’an River
Reservoir
Figure 1. The location of Xin’an River Reservoir
Xin’an River Reservoir was originally designed for power generation, flood
control, navigation and fishery. During the operation for more than 40 years, the
reservoir has brought enormous benefits of power generation, travel, flood control,
pollution mitigation and salt resistance in downstream water body. As a main
branch of Qiantang River, Xin’an River brings clean water to the developed area in
the northeast part of Zhejiang Province. The perfect water resources and
environment in upstream area are gained by continuous investment on
environment conservation and self-purification of the reservoir. The percentage of
forest coverage reaches more than 75%, which is four times larger than the
average forest coverage percentage (18.2%) in China. The downstream water
power stations, Qiandao Lake and water consumers in Hangzhou City all benefit
from the clean water supplied by Xin’an River. But on the contrary, higher standard
for environmental protection in upstream areas is set to prevent water pollution in
the reservoir, so it results in large protection cost for the upstream. To some extent,
the reservoir influences economic development in upstream area and the
reservoir district, which contributes to regional economic disparity. The loss of
economic development chance caused by ecological protection is one of the
important reasons that result in the imbalance of economy between the upstream
and the downstream. In 2006, the annual per capita GDP of Hangzhou is about
8300 USD which is more than 5 times of the 1600 USD in the upstream district of
the reservoir. Consequently, with the rapid development in the upstream districts
in recent years and the heavy protection cost, risks of pollution and environment
degradation in Xin’an River Basin becomes increasingly higher. That may bring
great harm to the sustainable development in Xin’an River Basin and downstream
districts in Zhejiang Province. Thus, the water resources conservation needs the
participation by all the stakeholders, who benefit from the water resources in
Xin’an River, in order to achieve harmonious development in the whole
watershed.
Ecological compensation may be an effective instrument to deal with the
problem. Some research and application have appeared both at home and abroad
[1]
, but several difficulties still exist especially in calculation of compensation
volume, transboundary problems, etc. [2]. In order to solve the difficulties with
transboundary ecological compensation and the conflict of economical
development and environment conservation, this paper applies a concept of
watershed ecological co-construction and sharing which means to burden the
conservation cost and share the benefit in the whole river basin. The distribution
of actual conservation cost is calculated, and the opportunity loss caused by
higher environmental protection standard for upstream areas of the reservoir is
estimated. As well, Mechanism and measures for application of ecological
compensation are put forward to promote effective protection and sustainable
utility of water resources.
2.
THEORY AND METHOD
The theory of sustainable development, which means not only to meet the
demand of current generation, but also not to do harm to the profit of offspring [3],
is the essential theory for ecological compensation in a watershed. Justice of
developments between generations, balance of developments between regions
and harmony among development, population, resources and environment are
three basic requirements for sustainable development. Therefore, principles of
characteristics of water resources as quasi-public goods, compensatory
occupation of environmental resources, internalization of external cost, and
balance of efficiency and justice are theoretical bases for reasonable
implementation of ecological compensation in a river basin [4].
Ecological co-conservation and sharing mechanism could be helpful to
balance economic development and environment conservation in a drainage area.
Ecological co-conservation and sharing means to burden the conservation cost
and share the benefit in a whole river basin. The scale of co-conservation area is
determined by geographical characteristics, while the sharing area is established
depending on exploitation and economic factors. The territory boundaries for the
conservation cost burdening area and the conservation benefit sharing area
should be determined first. The conservation cost burdening area is where the
human activity, such as economy and ecological protection, could influence the
environmental quality and water quantity. The conservation benefit sharing area
covers the co-conservation area, and it means the social and economical system
which benefits from the ecological conservation, so the sharing area may be
larger than the co-conservation area [5].
Based on the concept of river basin ecological co-conservation and sharing,
the co-conservation cost should be shared by the beneficiaries. The ecological
conversation cost includes two parts: the actual expenditure of water conservation
and opportunity loss of development caused by higher environmental protection
standard. The distribution of actual co-conservation cost to governments,
enterprises and others who benefit from Xin’an River are conducted according to
the proportion between benefits shared by sections in different areas. By
estimating the loss of Bankrupted, Closed, Merged and Changing enterprises and
corresponding loss of income, opportunity loss of development is approximately
calculated.
3.
BENEFITS BROUGHT BY XIN’AN RIVER RESERVOIR
Xin’an River Reservoir was originally designed for power generation, flood
control, navigation and fishery. During later more than 40 years operation, it is
discovered to have obvious impact on the estuary saltwater intrusion, river bed
erosion and deposition. Through reasonable regulation of the reservoir, Water
resources of Xin’an River Reservoir have comprehensive benefits for both
economy and environment, such as water supply, power generation, fishery,
traveling, navigation, pollution receiving, etc. The total benefit of Xin’an River is
estimated to be about 935 million USD in 2006. (Table 1.)
Items
Economic
benefits
/Million
USD
Environme
ntal
benefits
/ Million
USD
Total
/ Million
USD
Table 1. Shared benefit of Xin’an River in 2006
Xin’an
Xin’an
Shared areas
River Basin Chun’an
River
in Anhui
County
Reservoir
Prov.
Power
33
generation
Water supply
57
85
Fishery
3
2
Travel
Downstream
area of Xin’an
River Reservoir
71
72
Beverage
manufacture
8
19
Subtotal
68
178
87
135
127
31
15
190
Subtotal
118
150
317
935
186
328
River channel
ecological
water use
Pollution
receiving
33
33
71
388
4.
4.1
ESTIMATION AND DISTRIBUTION OF ACTUAL CONSERVATION COST
IN XIN’AN RIVER BASIN
TERRITORY SCALES OF CO-CONSERVATION AND SHARING AREAS
Water resources co-conservation area is determined by the geographical
characteristics. The territory boundary covers the whole watershed including the
Xin’an hydropower station, Huangshan City and Jixi County in Anhui province and
counties of Chun’an and a part of Jiande in Zhejiang province (Figure 2).
Water resources benefit sharing area is determined by dynamic economical
characteristics. It consists of all the economical systems both in and out of the
river basin, which receive the benefits brought by the environment protection
directly or indirectly. Besides the co-conservation area, the sharing area covers
parts of the counties of Tonglu, Fuyang, Lin’an and urban district of Hangzhou City
in Zhejiang province. It covers an area of 24 019 km2, with a population of 7.8
million. Furthermore, a potential sharing area is a dynamic district which would
probably share the benefits given by the water resources of Xin’an River.
Ecological
co-conservation
area
Ecological
sharing area
Potential
sharing area
Figure 2. Co-conservation and sharing areas [5]
4.2
ESTIMATION AND DIVISION OF CONSERVATION COST IN XIN’AN RIVER BASIN
Water resources conservation expenditures could be classified into actual
and opportunity costs respectively. Actual investment includes the investment to
forest construction, controlling of soil and water loss, pollution prevention,
ecological migration, etc. opportunity cost covers the loss caused by the sacrifice
of restrained industry that may lead to pollution. The actual conservation cost in
Xin’an River Basin is estimated to be totally about 60.8 million USD in 2006.
According to the proportion between benefits shared by sections in different
areas, which could be determined by table 1, the distribution of co-conservation
cost to governments, enterprises and others in the benefit sharing area is
calculated. As shown in table 2, the total expenditure should be burdened by
water users and governments in whole sharing area.
Table 2. Distribution of conservation cost in 2006
Xin’an
Xin’an
Areas River Basin Chun’an
River
Sections
in Anhui
County
Reservoir
Prov.
Power
2.1
generation
Water
3.7
5.5
supply
Burdened cost by
Fishery
0.2
0.2
different users/
Million USD
Travel
4.7
Beverage
0.5
1.2
manufacture
Subtotal
4.4
11.6
2.1
Central
3.8
4.9
Burdened cost by
government
governments/
Local
Million USD
3.8
4.9
government
Total/ Million USD
60.8
12.0
21.4
2.1
Downstream
area of
Xin’an River
Reservoir
4.7
4.7
10.3
10.3
25.3
The economic benefits are shared privately by definite water users, while
the environmental benefits are shared publicly by human community as a whole.
Thus, the burdened cost could be paid by economic users and governments.
5.
ESTIMATION OF OPPORTUNITY LOSS OF ECONOMIC
DEVELOPMENT
Since the 1990s, more than 210 enterprises have been Bankrupted, Closed,
Merged and Changing in the Huangshan City and Chun’an County for the
environmental protection of Xin’an River reservoir. Other 150 projects were
canceled. Thus, this restriction of economic development results in opportunity
loss of GDP, financial income and residents’ employment and income in upstream
area of the reservoir. By conservatively estimation, the annual loss of financial
income in Xin’an River Basin is about 62 million USD. Furthermore, about 10
thousand employment opportunities and 12.5 million USD residential income are
lost annually.
6.
MECHANISM AND MEASURES FOR APPLICATION OF ECOLOGICAL
COMPENSATION
A Framework for Implementation of ecological compensation should be
founded first, including targets, principles, measures, organization and
mechanism, etc. By elaborating steps, the framework could be implied to the river
basin.
Principles. “Beneficiaries pay, polluters cure, constructors enjoy” is the
basic principle to be obeyed. In addition, some other principles are also required
to be conformed during the co-conservation and sharing mechanism, such as
integration of government control and market adjustment, sharing based on
co-conservation, harmony between regions, negotiation and participation, justice
and efficiency, feasibility and endurance of all the stakeholders, etc.
Determination of co-conservation and sharing subjects. The
environment protectors in the conservation area are co-conservation subjects. In
Xin’an River Basin, it includes the government, enterprises and people who
contribute to the ecological conservation in the watershed. The beneficiaries of
Xin’an River are the sharing subjects, which involve the people who receive the
social, economical and ecological benefits in the sharing area.
Measures. Based on the calculated division of actual conservation cost and
opportunity loss of economic development, different measures could be applied.
Funds by governments and payment by water users could be effective and
suitable to compensate the actual conservation cost, while economic cooperation
between the upstream and downstream and preferential policy to the upstream
would be helpful to compensate the lost developing chances and incomes in the
upstream area.
Foundation of steering committee and negotiation mechanism. River
basin management committee should be founded to take the charge of promoting
negotiation between different districts and sections. The discussion and
interaction of all the stakeholders could be organized by the committee.
Institutions could be founded for committee to achieve co-conservation and
sharing by negotiation of all the stakeholders. Conflicts and problems in the
implementation of co-conservation and sharing could also be judged by the
committee.
Guarantee mechanism by law or supervision. Institutions of water rights,
taxation policy, ecological migration, substitute industry construction policy,
pollutant discharge fee, etc. should be established by governments to execute
effectively. To guarantee the reasonable expenditure of the collected fund,
supervision mechanism ought to be founded to administrate the fund. Institutions
for information publicity system, effect assessment of ecological compensation
and report on application of ecological compensation annually should be carried
out.
7.
CONCLUSION
A comprehensive reservoir has various economic and environmental
benefits, but it would inevitably have negative impacts to ecology and
development of the upstream area. To promote sustainable utility of water
resources in Xin’an River Basin, the actual conservation cost and opportunity loss
of economic development in the upstream area of Xin’an River Reservoir are
estimated. Through applying the concept of co-conservation and sharing in Xin’an
River Basin, distribution of the conservation cost is calculated according to the
proportion between benefits shared by different sections and areas. A framework
should be founded elaborately to implement the ecological compensation.
Financial and political measures are suggested to compensate the actual
conservation cost and regional economic disparity caused by higher standard of
environmental protection in the upstream of Xin’an River Reservoir. By the
negotiation of stakeholders, committee and institutions could be constructed to
promote a permanent mechanism for sustainable water use in a river basin.
ACKNOWLEDGEMENTS
This research is sponsored by Chinese Ministry of Finance. Sincere thanks
are also given to Chinese National Development and Reform Commission,
Chinese Ministry of Water Resource and State Environmental Protection
Administration of China for providing the data and motivation of this research.
REFERENCES
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of Participation in Costa Rica’s PSA Program [J]. World Development, 2005,
33(2):255~272
[2] Ruan B. Q., Xu F. R., Zhang C. L. “Advancement in research and practice of
river basin ecological compensation.” Journal of Hydraulic Engineering, 2008,
39(10), 1220-1225
[3] Daly, H. E. “Sustainable Development: From Concept and Theory to
Operational Principles.” Population and Development Review, 1990, Vol. 16,
Supplement: Resources, Environment, and Population: Present Knowledge,
Future Options, 25-43.
[4] Zhang, C. L., Ruan, B. Q. “The economy analysis on water resources
restoration and compensation.” Water Conservancy Science and Technology
and Economy, 2003, 9(1), 3-5.
[5] Benqing Ruan, Fengran Xu, Yulong Liu, Chunling Zhang. Ecological
co-conservation and sharing mechanism for sustainable watershed
management. In proceeding of World Environmental and Water Resources
Congress 2008 Ahupua'a.
ABSTRACT
With a huge capacity of 17.8 billion m3, Xin’an River Reservoir is located in
the upstream area of Qiantang River Basin in Southeast China. Economic benefits
of the reservoir, such as power generation, fishery, travel, and benefits for
pollution mitigation and salt resistance in downstream water body are analyzed
and estimated in 2006. Higher standard for environmental protection in upstream
areas is set to prevent water pollution in the reservoir, so it results in large
protection cost for the upstream. To some extent, the reservoir influences
economic development in upstream area and the reservoir district, which
contributes to regional economic disparity. Thus, this paper applies a concept of
watershed ecological co-construction and sharing which means to burden the
conservation cost and share the benefit in the whole river basin. The distribution
of conservation cost is calculated. As well, Mechanism and measures for
application of ecological compensation are put forward to promote effective
protection and sustainable utility of water resources.
KEY WORDS
Xin’an River Reservoir, benefits, ecological compensation, sustainable
development