Environmental Quality and Sustainability

Policy experiments are crucial for fostering innovation and mitigating risks and can serve as catalysts for transformative changes. This study investigates the governance of policy experiments in China, focusing on how political factors shape their outcomes. It emphasizes the need to consider concurrent trials—related policy trials implemented simultaneously in a locality that can influence outcomes—when selecting comparable cases for analysis. Such consideration is critical, especially when the policy issue spans multiple sectors and the level of difficulty differs across sectors. By comparing five cities engaged in the same three decarbonization pilots between 2010 and 2015, Hangzhou and Xiamen are identified to have had similar initial conditions and goals but achieved divergent outcomes. This research uncovers the critical role of political leadership in achieving varying levels of decarbonization progress and identifies policy coherence with broader local priorities to be the key explanation for continued leadership attention and efforts devoted to decarbonization despite turnover. The study contributes to the literature by addressing the under-studied impact of political factors and concurrent trials, offering a replicable procedure for future research and practical policy applications.

In an era of disruptive global challenges, from climate crises to pandemics, understanding the drivers of drastic policy innovation is paramount. This study defines drastic policy innovation as a significant shift in governmental priorities through policies untried by most jurisdictions in a country. While policy entrepreneurs are often credited with initiating change, this study argues that political will is essential for enacting and implementing such innovative policies. Political will is defined as the degree of commitment among key decision makers to enact and implement specific policies. It is characterized by three key components: authority (the power to enact and enforce policy), capacity (the resources to implement it effectively), and legitimacy (the perceived rightfulness of actions by stakeholders). Through the case of low-carbon city experimentation in China, this study examines how political will drives the adoption and implementation of these policies. The findings reveal that a high level of political will is significantly linked to more drastically innovative policies being enacted and implemented and that when political will is institutionalized, implementation continues despite leadership turnover. These insights likely apply to other policy contexts and countries, regardless of regime type, albeit with some caveats.

As part of its effort to balance economic development with environmental objectives, China has established a new national park system, with the first five locations formally established in 2021. However, as the new parks all host or are proximate to human populations, aligning the socioeconomic needs and aspirations of local communities with conservation aims is critical for the long-term success of the parks. In this narrative review, the authors identify the ecological priorities and socioeconomic stakeholders of each of the five national parks; explore the tensions and synergies between these priorities and stakeholders; and synthesize the policy recommendations most frequently cited in the literature. A total of 119 studies were reviewed. Aligning traditional livelihoods with conservation, limiting road construction, promoting education and environmental awareness, and supporting the development of a sustainable tourism industry are identified as important steps to balance conservation with economic development in the new national parks.

Many countries have undertaken large and high-profile payment-for-ecosystem-services (PES) programs to sustain the use of their natural resources. Nevertheless, few studies have comprehensively examined the impacts of existing PES programs. Grassland Ecological Compensation Policy (GECP) is one of the few pastorally focused PES programs with large investments and long duration, which aim to improve grassland quality and increase herder income. Here we present empirical evidence of the effects of GECP on grassland quality and herder income. Through a thorough and in-depth econometric analysis of remote sensing and household survey data, we find that, although GECP improves grassland quality (albeit to only a small extent) and has a large positive effect on income, it exacerbates existing income inequality among herders within their local communities. The analysis demonstrates that the program has induced herders to change their livestock production behavior. Heterogeneity analysis emphasizes the importance of making sure the programs are flexible and are adapted to local resource circumstances.

In addition to habitat loss and fragmentation, demographic processes—the vagaries of births, deaths and sex ratio fluctuations—pose substantial threats to wild giant panda populations. Additionally, climate change and plans for the Giant Panda National Park may influence (in opposing directions) the extinction risk for wild giant pandas. The Fourth National Giant Panda Census showed pandas living in 33 isolated populations. An estimated 259 animals live in 25 of these groups, ~14% of the total population. We used individual-based models to simulate time series of these small populations for 100 years. We analysed the spatial pattern of their risk of extinction under current conditions and multiple climate change models. Furthermore, we consider the impact of the proposed Giant Panda National Park. Results showed that 15 populations face a risk >90%, and for 3 other populations the risk is >50%. Of the 15 most at-risk populations, national parks can protect only 3. Under the Representative Concentration Pathway 8.5 climate change scenario, the 33 populations will probably further divide into 56 populations. Some 41 of them will face a risk >50% and 35 face a risk >90%. Although national parks will probably connect some fragmented habitats, 26 populations will be outside national park planning. Our study gives practical advice for conservation policies and management and has implications for the conservation of other species in the world that live in isolated, fragmented habitats.

Natural infrastructure such as parks, forests, street trees, green roofs, and coastal vegetation is central to sustainable urban management. Despite recent progress, it remains challenging for urban decision-makers to incorporate the benefits of natural infrastructure into urban design and planning. Here, we present an approach to support the greening of cities by quantifying and mapping the diverse benefits of natural infrastructure for now and in the future. The approach relies on open-source tools, within the InVEST (Integrated Valuation of Ecosystem Services and Tradeoffs) software, that compute biophysical and socio-economic metrics relevant to a variety of decisions in data-rich or data-scarce contexts. Through three case studies in China, France, and the United States, we show how spatially explicit information about the benefits of nature enhances urban management by improving economic valuation, prioritizing land use change, and promoting inclusive planning and stakeholder dialogue. We discuss limitations of the tools, including modeling uncertainties and a limited suite of output metrics, and propose research directions to mainstream natural infrastructure information in integrated urban management.

Nature underpins human well-being in critical ways, especially in health. Nature provides pollination of nutritious crops, purification of drinking water, protection from floods, and climate security, among other well-studied health benefits. A crucial, yet challenging, research frontier is clarifying how nature promotes physical activity for its many mental and physical health benefits, particularly in densely populated cities with scarce and dwindling access to nature. Here we frame this frontier by conceptually developing a spatial decision-support tool that shows where, how, and for whom urban nature promotes physical activity, to inform urban greening efforts and broader health assessments. We synthesize what is known, present a model framework, and detail the model steps and data needs that can yield generalizable spatial models and an effective tool for assessing the urban nature–physical activity relationship. Current knowledge supports an initial model that can distinguish broad trends and enrich urban planning, spatial policy, and public health decisions. New, iterative research and application will reveal the importance of different types of urban nature, the different subpopulations who will benefit from it, and nature’s potential contribution to creating more equitable, green, livable cities with active inhabitants.

Climate change and human activities exert a wide range of stressors on urban coastal areas. Synthetical assessment of coastal vulnerability is crucial for effective interventions and long-term planning. However, there have been few studies based on integrative analyses of ecological and physical characteristics and socioeconomic conditions in urban coastal areas. This study developed a holistic framework for assessing coastal vulnerability from three dimensions - biophysical exposure, sensitivity and adaptive capacity - and applied it to the coast of Bohai Economic Rim, an extensive and important development zone in China. A composite vulnerability index (CVI) was developed for every 1 km2 segment of the total 5627 km coastline and the areas that most prone to coastal hazards were identified by mapping the distribution patterns of the CVIs in the present and under future climate change scenarios. The CVIs show a spatial heterogeneity, with higher values concentrated along the southwestern and northeastern coasts and lower values concentrated along the southern coasts. Currently, 20% of the coastlines with approximately 350,000 people are highly vulnerable to coastal hazards. With sea-level rises under the future scenarios of the year 2100, more coastlines will be highly vulnerable, and the amount of highly-threatened population was estimated to increase by 13–24%. Among the coastal cities, Dongying was categorized as having the highest vulnerability, mainly due to poor transportation and medical services and low GDP per capita, which contribute to low adaptive capacity. Our results can benefit decision-makers by highlighting prioritized areas and identifying the most important determinants of priority, facilitating location-specific interventions for climate-change adaptation and sustainable coastal management.

Gross Ecosystem Product (GEP) is an aggregate measure of the monetary value of final ecosystem services, or the direct benefits that people derive from nature. In this study, we focus on the 'Chang-Zhu-Tan' (CZT) urban agglomeration—an emerging megacity of over 15 million people situated on the Yangtze River—as a case study of the dynamics of ecological production amidst rapid urbanization. In this study, we couple a spatial-temporal analysis of regional ecological change based on remote-sensing data with economic valuation methods (e.g. travel cost method) using official statistics and survey data. We find that while the land cover of natural ecosystems decreased slightly between 2000 and 2015, their quality—and therefore economic value—greatly improved. From 2000 to 2015, the GEP of CZT increased by 56.77%. In particular, the value of regulating services grew by 7.43% (calculated using inflation-adjusted prices). GEP can reflect nature's contribution to human well-being. At the same time, its long-term trends can serve as an indicator of the extent and quality of local and regional ecosystems, thereby providing a corrective or complement to more conventional measures of development. Although urbanization increases spatial constraints on the management of natural capital, progress in ecological protection and restoration can still improve the quality of ecosystems and the services they provide. Our study shows how GEP, and the value of natural capital it reflects, can grow amidst the pressures of rapid urbanization.

The restoration of ecosystems provides an important opportunity to improve the provision of ecosystem services. Achieving the maximum possible benefits from restoration with a limited budget requires knowing which places if restored would produce the best combination of improved ecosystem services. Using an ecosystem services assessment and optimization algorithm, we find choices that generate maximum benefits from ecosystem restoration. We applied a set of weights to integrate multiple services into a unified approach and find the optimal land restoration option given those weights. We then systematically vary the weights to find a Pareto frontier that shows potentially optimal choices and illustrates trade-offs among services. We applied this process to evaluate optimal restoration on Hainan Island, China, a tropical island characterized by multiple ecosystem service hotspots and conditions of poverty. We analyzed restoration opportunities with the goal of increasing a provisioning service, plantation revenue, and several water-related ecosystem services that contribute to improved water quality and flood mitigation. We found obvious spatial inconsistencies in the optimal location for maximizing separate services and tradeoffs in the provision of these services. Optimized land-use patterns greatly out-performed the non-target restoration scheme. When explicit consideration of the importance of poverty alleviation was taken into account, the location of the prioritized areas shifted and trade-offs among services varied. Our study emphasizes the importance of integrating social concerns into land-use planning to mitigate conflicts and improve equity, especially in the areas where poverty and hotspots of biodiversity and ecosystem services are highly geographically coincident.

Significance
To achieve sustainable development, there is a pressing need to move beyond conventional economic measures like gross domestic product (GDP). We develop gross ecosystem product (GEP), a measure that summarizes the value of the contributions of nature to economic activity. We illustrate the calculation of GEP in Qinghai Province, China, to show that the approach is tractable both across China and globally. Known as the water tower of Asia, Qinghai is the source of the Mekong, Yangtze, and Yellow Rivers and nearly two-thirds of GEP derives from water-related values. GEP was greater than GDP in Qinghai in 2000, and was three-fourths as large as GDP in 2015. China is using GEP to guide investments in ecosystem conservation and restoration.

Abstract
Gross domestic product (GDP) summarizes a vast amount of economic information in a single monetary metric that is widely used by decision makers around the world. However, GDP fails to capture fully the contributions of nature to economic activity and human well-being. To address this critical omission, we develop a measure of gross ecosystem product (GEP) that summarizes the value of ecosystem services in a single monetary metric. We illustrate the measurement of GEP through an application to the Chinese province of Qinghai, showing that the approach is tractable using available data. Known as the “water tower of Asia,” Qinghai is the source of the Mekong, Yangtze, and Yellow Rivers, and indeed, we find that water-related ecosystem services make up nearly two-thirds of the value of GEP for Qinghai. Importantly most of these benefits accrue downstream. In Qinghai, GEP was greater than GDP in 2000 and three-fourths as large as GDP in 2015 as its market economy grew. Large-scale investment in restoration resulted in improvements in the flows of ecosystem services measured in GEP (127.5%) over this period. Going forward, China is using GEP in decision making in multiple ways, as part of a transformation to inclusive, green growth. This includes investing in conservation of ecosystem assets to secure provision of ecosystem services through transregional compensation payments.

Over 240 migratory water bird species depend on China's 18,000 km coastline as a vital stopover area. However, the rapid loss of natural wetlands has threatened this seasonal water bird migration over the last few decades. In the present study, to improve our understanding of the pattern and amount of habitat loss in key stopover areas (KSAs) and the spatial covariance between habitat loss and economic development, we conducted a spatially explicit evaluation of coastal habitat loss in KSAs and explored its relationship with social and economic dynamics along the China coast by integrating high-spatial resolution satellite imagery with an updated coastal water bird investigation data set. The remote sensing survey detected a habitat loss percentage of 19.4% in the KSAs during 2000 and 2010. Aquaculture, urbanization, and land reclamation were responsible for the most severe disturbances to coastal habitats. These results demonstrate that the losses of wetland habitats in the KSAs in Chinese coastal areas are more severe than those in other coastal areas even though more protective measures have been implemented in these areas. Risk-based analysis showed that the risk of habitat loss was greatest in undeveloped regions with rich natural wetland and large populations, thereby demonstrating the critical importance of shifting the focus of water bird conservation to these regions to ensure the conservation of migratory water birds in the East Asian–Australasian Flyway. These findings disagree with the hypothesis that more habitats are lost when the economy is more developed. Therefore, we suggest that focusing conservation decisions on areas undergoing urbanization might improve the effectiveness of conservation measures given the pressures due to various forms of wetland exploitation.

A growing body of empirical evidence is revealing the value of nature experience for mental health. With rapid urbanization and declines in human contact with nature globally, crucial decisions must be made about how to preserve and enhance opportunities for nature experience. Here, we first provide points of consensus across the natural, social, and health sciences on the impacts of nature experience on cognitive functioning, emotional well-being, and other dimensions of mental health. We then show how ecosystem service assessments can be expanded to include mental health, and provide a heuristic, conceptual model for doing so.

Significance
Following severe environmental degradation from rapid economic development, China is now advancing policies to secure biodiversity and ecosystem services. We report the first nationwide assessment, showing that protected areas (PAs) are not well delineated to protect either biodiversity or key ecosystem services. This serious deficiency exists in many countries. We propose creating a national park system in China to help guide development along a path of green growth, improving the well-being of both people and nature. This involves establishing new, strictly protected PAs for biodiversity and ecosystem services that are highly sensitive to human impacts, as well as a new PA category—in China and ideally worldwide—for integrating biodiversity, ecosystem services, and human activities to achieve sustainable development goals.

Abstract
Recent expansion of the scale of human activities poses severe threats to Earth’s life-support systems. Increasingly, protected areas (PAs) are expected to serve dual goals: protect biodiversity and secure ecosystem services. We report a nationwide assessment for China, quantifying the provision of threatened species habitat and four key regulating services—water retention, soil retention, sandstorm prevention, and carbon sequestration—in nature reserves (the primary category of PAs in China). We find that China’s nature reserves serve moderately well for mammals and birds, but not for other major taxa, nor for these key regulating ecosystem services. China’s nature reserves encompass 15.1% of the country’s land surface. They capture 17.9% and 16.4% of the entire habitat area for threatened mammals and birds, but only 13.1% for plants, 10.0% for amphibians, and 8.5% for reptiles. Nature reserves encompass only 10.2–12.5% of the source areas for the four key regulating services. They are concentrated in western China, whereas much threatened species’ habitat and regulating service source areas occur in eastern provinces. Our analysis illuminates a strategy for greatly strengthening PAs, through creating the first comprehensive national park system of China. This would encompass both nature reserves, in which human activities are highly restricted, and a new category of PAs for ecosystem services, in which human activities not impacting key services are permitted. This could close the gap in a politically feasible way. We also propose a new category of PAs globally, for sustaining the provision of ecosystems services and achieving sustainable development goals.

China recently completed its first National Ecosystem Assessment covering the period 2000–2010. Ouyang et al. present the main findings of the assessment. Investment in the restoration and preservation of natural capital has resulted in improvements at the national level in most of the major ecosystem services measured. In particular, food production, carbon sequestration, and soil retention showed strong gains; on the other hand, habitat provision for biodiversity showed a gradual decline. Regional differences remain nonetheless, and there are serious environmental challenges still to be met in areas such as air quality and the wider global footprint of raw material imports.

China makes a unique and vital contribution to maintaining global and regional waterbird diversity and conservation. Despite considerable historical conservation efforts, the continued loss of waterbird diversity and abundance necessitates a contemporary review of Chinese sites of conservation significance. The Ecological Protection Red Line (EPRL) was proposed by China’s Central Government in 2013 to protect areas providing crucial ecosystem services and provides the opportunity for such a review to enhance waterbird conservation in China. By incorporating various sources of data, surveys and information, we identified a suite of sites of waterbird conservation significance in China, following the Ramsar Site Criteria/Important Bird and Biodiversity Area (IBA) Criteria. In total, we identified 422 sites, of which the existing 286 IBA sites formed the basis of the site safeguard network. Altogether, these sites of waterbird conservation significance constitute over 727,000 km2 (7.6% of China’s land surface). Over half of the area of these sites is outside China’s national nature reserves, thus confirming the importance and urgency of including them in the EPRL for the effective conservation of waterbird sites. We suggest that this assessment of sites of waterbird importance offers a useful model to apply to other taxa, such as terrestrial birds and mammals.

Considering the impossibility to cover the entire population of an endangered species in protected areas, a new approach (species conservation redlines) was recently been proposed in China. It constitutes the baseline space for species conservation but mapping and managing a species redline is not clear. In this study, a procedure on how to map habitat conservation redlines for the endangered giant panda was proposed. Panda habitat was first modeled based on field survey and remotely sensed data. Redline area was proposed after comparing three different scenarios, covering different proportions of panda habitat and populations. Results showed that the proposed redline area covered 9358 km2. This area can protect more than 80% of the populations in all mountain regions in the study area, while keeping the connectivity of the habitat. The current nature reserves cover 60% of the redline area. Suggestions on how to manage redline areas inside and outside reserves are proposed, to limit human development activities in panda habitat. Our study provided a new approach for managing panda habitat, and would have implications for conservation of other endangered species in China and the world.

Urban parks improve quality of life by providing an array of cultural and natural ecosystem services, such as maintaining biodiversity, reducing air pollution, and benefiting residents' physical and mental states. Although government invests a large amount of capital into park management, parks are still underused in many cases. In this study, the association and relative importance of socio-demographic, environmental, and individual factors were investigated with regards to their impact on citizens' park visitation. Data was collected through cross-sectional door-to-door questionnaires and online databases, and was analyzed using a hierarchical regression model. Results showed that physical exercise (27.4% of collected reports) and rest and relaxation (26.7%) were the two most widespread reasons for park use. When asked about constraints of park visitation, time limitations were reported as being the most constraining factor. However, our quantitative analysis found no significant correlation. Socio-demographic, environmental, and individual variables explained 1%, 20% and 26% (adjusted R2) of the total variance in frequency of park visitation between participants, respectively. A citizen's neighborhood greenspace, housing price, and distance from the nearest park were negatively correlated with park use. Among individual factors, a participant's reported affinity for park visits, time spent in their residential greenspace, and number of children under seven were positively correlated with park visitation, with a decreasingβcoefficient. This research highlights the predominant contribution of attitude over accessibility factors when it comes to park visitation. Furthermore, the data indicates that accessibility factors function differently for frequent, infrequent, and moderate park users and provision with parks within 1000 m of their home is recommended. The findings have implications for park management and future research.

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.

Despite broad interest in using payment for ecosystem services to promote changes in the use of natural capital, there are few expost assessments of impacts of payment for ecosystem services programs on ecosystem service provision, program cost, and changes in livelihoods resulting from program participation. In this paper, we evaluate the Paddy Land-to-Dry Land (PLDL) program in Beijing, China, and associated changes in service providers’ livelihood activities. The PLDL is a land use conversion program that aims to protect water quality and quantity for the only surface water reservoir that serves Beijing, China’s capital city with nearly 20 million residents. Our analysis integrates hydrologic data with household survey data and shows that the PLDL generates benefits of improved water quantity and quality that exceed the costs of reduced agricultural output. The PLDL has an overall benefit–cost ratio of 1.5, and both downstream beneficiaries and upstream providers gain from the program. Household data show that changes in livelihood activities may offset some of the desired effects of the program through increased expenditures on agricultural fertilizers. Overall, however, reductions in fertilizer leaching from land use change dominate so that the program still has a positive net impact on water quality. This program is a successful example of water users paying upstream landholders to improve water quantity and quality through land use change. Program evaluation also highlights the importance of considering behavioral changes by program participants.