Upstream Rural Communities of the Miyun Watershed's Participation in PES

Paddy Land to Dry Land Program (PLDL)

The Paddy Land to Dry Land Program is a joint initiative between Beijing and Hebei intended to increase water inflow and reduce pollution to the Miyun Reservoir (Zheng et al., 2013). In 2006, the Beijing Municipal Government signed an agreement with the governments of Hebei Province’s Chengde City and Zhangjiakou City, and agreed to pay an annual compensation (around 844 USD per ha in 2006 and 2007, and around 1031 USD per ha from 2008) for landholders in Hebei to convert from growing rice to cultivating corn (ibid.). By 2010, all of the around 6,867 ha (103,000 mu; mu is Chinese measurement equivalent to 1/15 ha) of rice fields were converted (ibid.). Wu et al. (2013) show that about 17.7% of farmers in their research area think the compensation is lower than they expected and some complain that they are unfamiliar with growing dry land crops. The local upstream participants of the program were only involved in the implementation of PES and had little bargaining power but they managed to lobby for an increase in the annual compensation (Zheng et al., 2013).

Zheng et al. (2013) report a benefit-cost ratio of 1.5 and find that both upstream providers and downstream beneficiaries benefit from this program. However, it is also important to understand program participants’ behavioral change (ibid.). Some farmers increase the use of chemical fertilizers and pesticides in their cropland, and Zheng et al. (2013) suggest that payments to households may not lead to the “ultimate socially desired end effect” (p.16685). The payment to land users must exceed the additional benefit that they can get from alternative land use (Pagiola et al., 2005). In addition, Zheng et al. (2013) find that more than 88% of the participating households surveyed express their wish to grow rice once payments from the Beijing Municipal Government end. It also brings to attention the long-term financial burden for the Beijing Municipal Government. Also, although Zheng et al. (2013) claim that in this program water users pay upstream landholders, but the downstream water users were not directly involved in planning and decision making process.

Afforestation Program for Ecological and Water Protection (APEWP)

Forests and the quality of water in the associated catchment is linked, and there is certain relationship between forests and quantity of water flow from a watershed (Dudley & Stolton, 2005). The Beijing and Hebei governments initiated the APEWP program in which the Beijing Municipal Government pays for afforestation of wasteland or shrub land most of which is collectively-owned at the village level in the Hebei province. Participation of local rural households is voluntary (Li et al., 2017). Same standard of payment is used for all project locations and all participating households must follow rules such as meeting qualification requirements and ensuring an acceptable tree survival rate, and currently insufficient willingness to participate or ineffective implementation is reported (ibid.).

Li et al. (2017) develop a set of choices regarding attributes such as contract length, freedom to leave, afforestation survival rate, financial penalty (if survival rate is lower than acceptable), inspection method and amount of cash subsidy, etc. Li et al. (2017) conclude that secured land tenure, pre-program consultation, and alternative contractual arrangements are important for inducing long-term willingness to participate in the program.