China Policy Journal Volume 1, Number 1, Fall 2018 | Page 80

Payment for Ecological Services and River Transboundary Pollution
Table 4. The Loss of Welfare due to Transboundary Water Pollution and the Total Transfer to Remedy Such Negative Externality
Location of the city j on main tributary (1=most
upstream, 9=most downstream)
*in the bracket (water quality, population in million)
j City j
Water
quality
Population
(million)
Distance
to
upstream
neighbor
(km)
Individual mean WTP (Yuan) Total transfer (|�WTP|�population, million Yuan)
from city j−1 to j
WTP
reported in
He et al.
(2015a)
�WTP =
WW jj (QQ kk − IIII),
k: direct
upstream
neighbor
�WTP =
WW jj ( QQ kk−IIII
),
1+⁡DD jj,kk /100
k: direct
upstream
neighbor
Based on model
“hypothesis 2”, where
�WTP = WW jj (QQ kk − IIII)
Based on model
“hypothesis 3”, where
�WTP = WW jj ( QQ kk−IIII
)
1+DD jj,kk /100
1 Qujing IV 6.4 — 61.5 — — — —
2 Guigang II 3.8 268 78.1 −10.15 −7.37 38.57 28.01
3 Wuzhou III 2.9 261 70 0 0 0 0
4 Yunfu III 2.4 100.2 20.5 −5.57 −6.78 13.37 16.27
5 Zhaoqing II 3.9 67.9 75.1 −5.57 −8.08 21.72 31.52
6 Foshan IV 7.2 81.12 64.9 0 0 0 0
7 Zhongshan
II
3.1 133 29.3
−10.15 −11.64
31.47
36.08
IV
0 0
0
8 Guangzhou
12.7 31.69 63.6
0
9 Zhuhai IV 1.6 38.6 36.3 −10.15 −19.57 16.24 31.32
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