China Policy Journal Volume 1, Number 1, Fall 2018 | Page 74

Payment for Ecological Services and River Transboundary Pollution “The Xijiang River drainage basin covers four provinces, Yunnan, Guizhou, Guangxi and Guangdong provinces. Although the water quality of Xijiang River is relatively better than other large rivers in North China, since several years, major pollution incidents frequently happened on its tributaries, affected directly health and safety of people living along the river. Given the rapid economic and social development in cities along the Xijiang River and the already observed tendency of reallocation of polluting industrial production toward upstream cities, many researchers expected large-scale deterioration of water quality in Xijiang River drainage basin in near future.” Then, the current water quality of the section of the Xijiang River flowing through the city where a respondent lived was presented with the help of the water quality ladder inspired by Mitchell and Carson (1989) and adapted to the water quality standard used in China. The river basin-level uniform water quality improvement target proposed by our hypothetical project is fixed at the swimmable level (C level on the water quality ladder illustrated in Figure 6), which corresponds to level II of the Chinese Ministry of Environment Protection classification. The respondents were then asked if they were willing to pay a monthly payment for the realization of this water quality improvement. Figure 6. Water Quality Ladders 71