This book is part of the Lincoln Book Series published by the Peking University–Lincoln Institute Center for Urban Development and Land Policy.
In recent years, the development of China’s protected area system has attracted growing national attention. A steady stream of policy documents indicates that building a robust protected area system has become a core component of ecological civilization construction. Spatial regulation within protected areas facilitates the rational conservation and development of heritage resources, yet it also raises issues regarding the distribution of land value increments and compensation for land value depreciation. Against this backdrop, this book constructs a theoretical framework and implementation pathways for financing natural protected areas, which carries great significance for improving China’s spatial governance system of protected areas and guiding multi-level financing practices for protected areas nationwide.
Financing Mechanisms for Protected Areas in China
This book clarifies the legal basis for financing protected areas in China. In recent years, national central policy documents have elevated the development of protected area governance systems to an unprecedented strategic position, and a suite of policies guaranteeing special fiscal funding for heritage sites have been gradually rolled out. While practical mechanisms for special funding allocation for protected areas are being explored continuously, academic research on benefit recapture theories and financing models for protected areas remains scarce. Even legal discussions on compensation obligations stemming from spatial regulation of protected areas are vague and insufficient. By analyzing the legal relationships between spatial zoning control in protected areas and land expropriation, property right restrictions, and equal sharing of public burdens, this book identifies the dual special sacrifices imposed on protected area land in terms of public-law development rights and private-law ownership, laying a solid legal foundation for protected area financing in China.
This book establishes a comprehensive theoretical framework for financing protected areas in China. Extensive domestic and international academic literature addresses the distribution of land value appreciation gains, and mature research systems on land value capture have been formed internationally. This book expands the existing theoretical system in two key dimensions. First, it broadens the conceptual connotation of value capture theory. Traditional studies mainly focus on the distribution of land value increments while neglecting the complementary dimension of compensation for land value losses. The bidirectional financing concept proposed in this book enriches the value capture theoretical system. Second, existing value capture research predominantly centers on urban regions and rarely covers ecologically focused protected areas. The protected area financing framework constructed in this book expands the connotation and applicable scope of value capture theory.
Figure: Conceptual Boundaries of Protected Areas Based on Heritage Carriers and Heritage Elements
Figure: Classification of Land Value Changes under Spatial Regulation of Protected Areas
Figure: Theoretical Framework for Protected Area Financing
This book perfects the fiscal guarantee system for China’s protected area network. While government domestic budgets constitute the largest funding source for protected areas in most countries, it remains debatable whether all conservation costs should be fully borne by the state. Furthermore, it remains unclear which other stakeholders ought to share conservation funding responsibilities alongside public finance. The three-tier financing system for protected area spatial governance developed in this book provides direct guidance for establishing a complete and effective fiscal guarantee mechanism for China’s protected areas.
This book is intended to guide multi-tier financing practices for protected areas in China. Although national authorities have launched initiatives to formulate ecological compensation mechanisms covering forests, grasslands, wetlands, deserts, marine zones, watercourses, and cultivated land, alongside targeted compensation policies for national parks, the overall performance of existing ecological compensation schemes is unsatisfactory. Fluctuations in land values triggered by protected area spatial regulation cannot be accurately identified, and disparities in land-derived revenues stemming from intra-protected-area land value gaps remain unresolved. Accordingly, the financing system proposed in this book bears substantial practical significance for on-the-ground financing operations of China’s protected areas.
Book Synopsis
Traditional fiscal instruments often fail to fill the massive funding gaps required for protected area management, and securing stable financial support for protected areas poses a global challenge. The Overall Plan for Establishing a National Park System explicitly mandates “building a diversified funding guarantee mechanism led by fiscal investment and exploring multi-channel, diversified investment and financing models.” Ensuring sustained, stable, and sufficient capital input for protected areas stands as the top institutional challenge in constructing China’s natural protected area system dominated by national parks. Grounded in benefit recapture theory, this book sorts out the legal foundations of protected area financing, constructs a dedicated theoretical framework for protected area financing, and compares transaction costs associated with various financing instruments. Its research carries vital practical value for China’s development of a national park-centered natural protected area system.
Table of Contents Overview
Chapter 1 Introduction 1
1.1 Policy Background 1
1.2 Clarification of Core Concepts 3
1.3 Domestic and International Research Progress on Protected Area Financing 13
1.4 Core Research Content of This Book 21
1.5 Theoretical Foundations of the Research 22
Chapter 2 International Policy Instruments for Protected Area Financing 27
2.1 International Experience with Spatial Regulation of Protected Areas 27
2.2 Financing Instruments Related to Land Ownership Rights 35
2.3 Financing Instruments Related to Land Taxes and Fees 50
2.4 Financing Instruments Related to Land Readjustment 60
2.5 Comparative Analysis of International Financing Policy Tools 66
Chapter 3 Theoretical Framework for Protected Area Financing 71
3.1 Legal Basis for Spatial Regulation of Protected Areas 72
3.2 Targets of Protected Area Financing 81
3.3 Structural Design of Protected Area Financing 96
3.4 Stakeholders in Protected Area Financing 102
3.5 Summary 107
Chapter 4 First-Tier Financing for Spatial Regulation of Protected Areas 108
4.1 Multi-Functional Ecological Compensation Policies 109
4.2 Diverse Ecological Resettlement Policies 124
4.3 Empirical Case Study: Sanjiangyuan National Park 130
4.4 Summary 141
Chapter 5 Second-Tier Financing for Spatial Regulation of Protected Areas 142
5.1 Comparative Analysis of Financing Approaches 143
5.2 Empirical Case Study: West Lake Cultural Landscape Heritage Site 154
5.3 Summary 172
Chapter 6 Third-Tier Financing for Spatial Regulation of Protected Areas 173
6.1 Institutional Design of Financing Mechanisms 174
6.2 Empirical Case Study: Jiuzhaigou Scenic Area 186
6.3 Summary 195
Chapter 7 Conclusions and Future Research Outlook 197
7.1 Main Research Conclusions 197
7.2 Limitations and Prospects for Further Research 201
References 204
Appendices 221
Appendix A International Comparative Analysis of Land Taxes 221
Appendix B Index of Policy Documents on Ecological Compensation 223
Appendix C List of Main Interviewees 227
