Yang, W., D. W. Hyndman, J. A. Winkler, A. Viña, J. Deines, F. Lupi, L. Luo, Y. Li, B. Basso, C. Zheng, D. Ma, S. Li, X. Liu, H. Zheng, G. Cao, Q. Meng, Z. Ouyang, and J. Liu. 2016. Urban water sustainability: framework and application. Ecology and Society 21(4):4.http://dx.doi.org/10.5751/ES-08685-210404

Ecological compensation is a crucial policy instrument that realigns the benefits of stakeholders to the ecosystem service provision. However, the spatial disconnections between locations where ecosystem services produced and used are common. The supply and demand for ecosystem services are calculated to reflect the status of the districts or counties based on ecosystem service flows. The replacement cost methods provide necessary technical supports for the calculation of compensation funds. The realigning of compensation funds between service-benefiting areas and service-providing areas not only identifies the beneficiaries and suppliers but also realizes the connection between them, which may be a feasible methodology. Fuzhou City is the study area, and two ecosystem services of water conservation and soil retention were taken into consideration. The prioritized development zone, Linchuan, and the key agricultural production zones paid ecological compensation funds. Linchuan paid the highest, 5.76 billion yuan. The key ecological function zones and the key agricultural production zones received the ecological compensation funds, of which Yihuang obtained the highest, 1.66 billion yuan. The realigning of compensation funds between the service benefiting and providing areas addresses the trade-offs between ecosystem services, social development, and ecosystem protection. Embedding the ecosystem service flows into the ecological compensation mechanism can most truly realize the value of ecosystem services, achieve the “beneficiary pays” principle, and be conducive to regional sustainable development.

Household welfare is inseparable from the environment because of its dependence on ecosystems and their services. However, linking household welfare and ecosystems in order to inform differentiated household livelihood development in spatially heterogeneous regions is still a great challenge. Based on a field survey of 1754 households, we grouped the relationships between household welfare (defined by total income) and ecosystem reliance (expressed by an index of dependence on ecosystem services) in the Watershed of Miyun Reservoir, the only source of surface water for domestic use in Beijing, China. The relationships can be grouped into four types: high welfare and high dependency; low welfare and low dependency; high welfare and low dependence; and low welfare and high dependency. Family structure, households’ education and skill level, and the proximity to Beijing have significant impacts on household welfare, while the quantity of natural capital and eco-compensation fund significantly contribute to the ecosystem dependence. Maintaining suitable family size and age structure, improving education and skill levels, and strengthening payment for ecosystem services within low welfare households would be effective approaches to their welfare improvement. The above classification can help design tailored policy and management options to promote sustainable livelihoods based on different household subgroups.