Nature-based solutions to China’s development challenges
Overview
While China’s remarkable industrial development has lifted hundreds of millions out of poverty and created a large middle class, it has also caused significant biodiversity loss, ecosystem degradation, and pollution in urban and rural areas. These environmental crises threaten human health and safety and undermine long-term economic development.
In response, China’s government is now promoting a system of ecological civilization to align environmental conservation and socio-economic development through initiatives in natural capital investment, sustainable infrastructure, biodiversity protection and renewable energy. Notably, China has committed to establishing official protection over 30% of its land by 2030 and achieving carbon neutrality by 2060.
SCCEI is collaborating with the Stanford Natural Capital Project (NatCap) and the Chinese Academy of Sciences’ Research Center for Eco-Environmental Sciences (RCEES) to advance nature-based policy solutions and support sustainable development in China and around the world. Our research focuses on four key areas: Ecological Civilization, Gross Ecosystem Product, Urban Nature and Health, and Nature and Rural Vitalization.
OUR COLLABORATORS:
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Featured Projects
Ecological Civilization
Ecological Civilization, a new policy system in China, is designed to align environmental conservation with socio-economic development. Our research analyzes this emerging policy framework and identifies opportunities for collaboration with government, enterprises, and civil society.
Gross Ecosystem Product
Gross Ecosystem Product (GEP) is an index that aggregates the total value of ecosystem goods and services into a single monetary metric. Co-developed by NatCap and RCEES, GEP is now being piloted in China on local and national levels.
Urban Nature and Health
With over 1 billion people projected to live in China’s cities by 2030, the mental and physical health of the urban population has become a top priority. Our research identifies how nature solutions can improve public health outcomes, with a focus on the role of urban greenspace.
Nature and Rural Vitalization
China’s rural countryside faces increasing needs for both environmental and economic investment. Our research aims to coordinate investments in natural capital with investments in human capital to transform China’s countryside into a frontier of sustainable development.
Significance
Understanding costs and benefits to multiple stakeholders, and how they change through time, is essential to designing effective conservation and human development policies. Where, when, and to whom benefits are delivered are rarely analyzed, however. We examine one of China’s conservation–development policies—the Relocation and Settlement Program of Shaanxi Province (RSP)—drawing insights of broad relevance. Although the RSP benefits the municipal government, downstream water consumers, and global beneficiaries, the short-run costs to local households and the municipal government greatly exceed these benefits. Moreover, poor households are unable to pay the upfront costs and have difficulty participating. The RSP is well designed to reduce local ecological pressure and enhance human development, but its effectiveness could be strengthened in key ways.
Abstract
Ideally, both ecosystem service and human development policies should improve human well-being through the conservation of ecosystems that provide valuable services. However, program costs and benefits to multiple stakeholders, and how they change through time, are rarely carefully analyzed. We examine one of China’s new ecosystem service protection and human development policies: the Relocation and Settlement Program of Southern Shaanxi Province (RSP), which pays households who opt voluntarily to resettle from mountainous areas. The RSP aims to reduce disaster risk, restore important ecosystem services, and improve human well-being. We use household surveys and biophysical data in an integrated economic cost–benefit analysis for multiple stakeholders. We project that the RSP will result in positive net benefits to the municipal government, and to cross-region and global beneficiaries over the long run along with environment improvement, including improved water quality, soil erosion control, and carbon sequestration. However, there are significant short-run relocation costs for local residents so that poor households may have difficulty participating because they lack the resources to pay the initial costs of relocation. Greater subsidies and subsequent supports after relocation are necessary to reduce the payback period of resettled households in the long run. Compensation from downstream beneficiaries for improved water and from carbon trades could be channeled into reducing relocation costs for the poor and sharing the burden of RSP implementation. The effectiveness of the RSP could also be greatly strengthened by early investment in developing human capital and environment-friendly jobs and establishing long-term mechanisms for securing program goals. These challenges and potential solutions pervade ecosystem service efforts globally.
The central challenge of the 21st century is to develop economic, social, and governance systems capable of ending poverty and achieving sustainable levels of population and consumption while securing the life-support systems underpinning current and future human well-being. Essential to meeting this challenge is the incorporation of natural capital and the ecosystem services it provides into decision-making. We explore progress and crucial gaps at this frontier, reflecting upon the 10 y since the Millennium Ecosystem Assessment. We focus on three key dimensions of progress and ongoing challenges: raising awareness of the interdependence of ecosystems and human well-being, advancing the fundamental interdisciplinary science of ecosystem services, and implementing this science in decisions to restore natural capital and use it sustainably. Awareness of human dependence on nature is at an all-time high, the science of ecosystem services is rapidly advancing, and talk of natural capital is now common from governments to corporate boardrooms. However, successful implementation is still in early stages. We explore why ecosystem service information has yet to fundamentally change decision-making and suggest a path forward that emphasizes: (i) developing solid evidence linking decisions to impacts on natural capital and ecosystem services, and then to human well-being; (ii) working closely with leaders in government, business, and civil society to develop the knowledge, tools, and practices necessary to integrate natural capital and ecosystem services into everyday decision-making; and (iii) reforming institutions to change policy and practices to better align private short-term goals with societal long-term goals.
Significance
Understanding costs and benefits to multiple stakeholders, and how they change through time, is essential to designing effective conservation and human development policies. Where, when, and to whom benefits are delivered are rarely analyzed, however. We examine one of China’s conservation–development policies—the Relocation and Settlement Program of Shaanxi Province (RSP)—drawing insights of broad relevance. Although the RSP benefits the municipal government, downstream water consumers, and global beneficiaries, the short-run costs to local households and the municipal government greatly exceed these benefits. Moreover, poor households are unable to pay the upfront costs and have difficulty participating. The RSP is well designed to reduce local ecological pressure and enhance human development, but its effectiveness could be strengthened in key ways.
Abstract
Ideally, both ecosystem service and human development policies should improve human well-being through the conservation of ecosystems that provide valuable services. However, program costs and benefits to multiple stakeholders, and how they change through time, are rarely carefully analyzed. We examine one of China’s new ecosystem service protection and human development policies: the Relocation and Settlement Program of Southern Shaanxi Province (RSP), which pays households who opt voluntarily to resettle from mountainous areas. The RSP aims to reduce disaster risk, restore important ecosystem services, and improve human well-being. We use household surveys and biophysical data in an integrated economic cost–benefit analysis for multiple stakeholders. We project that the RSP will result in positive net benefits to the municipal government, and to cross-region and global beneficiaries over the long run along with environment improvement, including improved water quality, soil erosion control, and carbon sequestration. However, there are significant short-run relocation costs for local residents so that poor households may have difficulty participating because they lack the resources to pay the initial costs of relocation. Greater subsidies and subsequent supports after relocation are necessary to reduce the payback period of resettled households in the long run. Compensation from downstream beneficiaries for improved water and from carbon trades could be channeled into reducing relocation costs for the poor and sharing the burden of RSP implementation. The effectiveness of the RSP could also be greatly strengthened by early investment in developing human capital and environment-friendly jobs and establishing long-term mechanisms for securing program goals. These challenges and potential solutions pervade ecosystem service efforts globally.
