Payments for Watershed Services and Practices in China: Achievements and Challenges

Implementation of payments for watershed services (PWS) has been regarded as a promising approach to coordinating the interests of upstream and downstream ecosystem services stakeholders. There is growing concern about whether PWS programs have achieved their original environmental goals of improving water quality and quantity, as well as the ancillary objective of increasing the welfare of local people. We start with an overview of PWS schemes and focus on their particularity and implementation mechanisms in China. We proceed to review 62 active PWS cases and examine their environmental performance in detail. The resulting findings show that PWS schemes have been able to reduce water pollution to some extent by establishing collaborative upstream/downstream watershed management policies, thereby improving water quality and quantity, as well as by making government officials more responsible for water resource management. In addition, their continued effectiveness in light of present challenges such as water-quality data availability is discussed. Chinese PWS schemes and their implementation mechanisms also provide information useful in monitoring environmental outcomes and guiding future designs of PWS programs in other regions.