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GREEN ECONOMIC DEVELOPMENT IN TIMES OF RISING LAND AND WATER CLAIMS

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Competition for land, water and energy will become more intense, with growing demands for space and water to meet food, fibre, fuel, industry and housing requirements. This will affect ecosystem services, biocapacity and biodiversity, especially in developing countries, which host the world’s principal remaining resources. Healthy ecosystem services are an important factor for local people – and especially the poorest – to sustain their livelihoods. 

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Eco-Compensation for Watershed Services in the PRC

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Eco-compensation not only shares characteristics with payments for ecological services, but also encompasses fiscal transfer schemes between provincial governments to improve the apportioning of funding for and clarify responsibilities and tasks on environmental management, especially on ecological service flows that cross administrative and regional boundaries, such as watershed ecological services. Such innovations have been at the core of the government’s ongoing efforts to identify and address the underlying institutional drivers of the People’s Republic of China’s (PRC) water crisis. 

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