Ecological Compensation in the Context of Carbon Neutrality: A Case Involving Service Production-Transmission and Distribution-Service Consumption

Abstract

Carbon ecological compensation is essential to coordinate regional environmental protection, reduce the gap between the economic development of protected areas and beneficiary areas, and achieve carbon neutrality. This paper proposed a theoretical framework for ecological compensation using the theories of carbon balance, externality, ecosystem services, and carbon trading mechanisms. Based on the analysis of the ecological compensation priority sequence in Henan Province, the suppliers and consumers of carbon sequestration were identified, and cross-regional ecological compensation was realized through ecosystem services flow. The results showed that the carbon sequestration supply in Henan Province was characterized as being high in the west and low in the east, while the demand was the opposite. Affected by the suitable environmental conditions, many areas had an ecological surplus pattern, and the carbon sequestration supply was more significant than the demand. Central and south-western Henan Province were distinct ecological compensation payment areas and receiving areas, respectively. Nanyang, which had the largest carbon sequestration flow and the largest ecological contribution to other regions, received the highest ecological compensation fund of CNY 4.069 billion. This study can provide decision support for carbon ecological compensation in the context of carbon neutrality.