

Land Conversion Programs for Water Security
Summary
To improve overall water quality and quantity for the city of Beijing, the local government initiated an ecosystem service provision near the Miyun Reservoir, exchanging paddy land for dry land.
Inflows to the Miyun Reservoir, one of Beijing's primary water sources, have steadily decreased from the 1960s to the 2000s, culminating in a 70% decrease in the forty years. The reservoir covers 188 square kilometers of land and has a drainage area of 15,800 square kilometers (one-fourth of which is located in Beijing) (Fu, 2017). Climate change has greatly reduced precipitation rates, ultimately resulting in less reliable replenishment of the Miyun Basin, Beijing's most important source of surface water (TNC, 2016; Zheng et al., 2013). Agricultural production has stressed the basin further through non-point source pollution and high water-demand crops, such as rice (Liu et al., 2018). Communities that live near the Miyun Basin primarily work in agriculture, largely cultivating rice for a living (Liu et al., 2018; Fu, 2017). By 2003, rice cultivation alone was consuming nearly 200 million cubic meters of water per year from the basin (TNC, 2016).
Intervention
To minimize the impacts of local agriculture (and rice cultivation, in particular) and to increase overall conservation of the Miyun Basin, Beijing initiated an eco-compensation initiative for farmers. Called "Paddy Land to Dry Land" (PLDFL), the program incentivizes farmers with compensation to convert their cropland from rice to less water-intensive crops, such as corn. The program was implemented in 2006 and scheduled to last until 2020 (Liu et al., 2018; Fu, 2017). PLDL was implemented as a joint initiative by the Beijing Local Development and Reform Commission (a subsidiary of Beijing Municipality) and the Chengde and Zhangjiakou Municipalities of Hebei Province. Beijing and Hebei organized the joint effort to protect shared water resources; the two provinces signed an MOU in 2006, stating that Beijing would be responsible for financing the program (Fu, 2017; Zheng et al., 2013).
The PLDL program was motivated by a number of intervening factors. Firstly, Beijing's growing population has resulted in a rapidly increasing water demand. Secondly, concerns regarding overall health and economic risks to local communities due to deteriorating water quality and quantity as a direct result of agricultural production also highlighted a need to address sustainable land use changes. Ultimately, in 2007, China's State Environmental Protection Administration identified four target areas for eco-compensation pilot projects; these included: nature reserves, critical ecological function zones, mineral development areas and watersheds (Bennet, 2009).
Although "eco-compensation" is not a widely used term globally, it is quite common throughout China. Eco-compensation projects became quite commonplace after the launch of the Conversion of Cropland to Forests Program by the Chinese government in 1999 (ADB, 2016; Bennet, 2009). Similarly, PLDL is a land-use conversion program that aims to protect water quality and quantity for Beijing's only surface water reservoir, by monetarily incentivizing farmers in the watershed to transition from paddy farming towards dry farming (Liu et al., 2018; TNC, 2016; Bennet, 2009). Farmers are offered a subsidy to switch from water-intensive rice cultivation to corn, which requires less water and does not require drainage, thereby resulting in less nutrient and sediment runoff as well as conserving water in the basin (Liu et al., 2018; TNC, 2016; Fu, 2017).
Challenges
Despite the many environmental benefits of the PLDL program, there were a number of notable shortcomings. Firstly, crop-switching offset some of the original beneficial effects, because farmers initially lacked the necessary knowledge regarding management of the new crop, which resulted in increases in fertilizer use to cultivate the new crops in some areas (Fu, 2017; Zheng, 2013). Furthermore, despite promises of fair compensation for farmers, critics have indicated that farmers were not compensated enough for the land change; some farmers saw their net income decrease by 11% annually between 2006 and 2014 (Liu et al., 2018; Zheng et al., 2013).
Outcomes
In 2003, a PLDL pilot project was implemented on 2,347 hectares of catchment area in Beijing province, saving approximately 4 million cubic meters of water annually. In 2006, a second PLDL project was implemented on 7,041 hectares of paddy land within the Hei River watershed, increasing water flow in the Hei River by 9 million cubic meters in a 10-month period. That same year, the Beijing City Government and Hebei Province Government signed the "Strengthening Economic and Social Development Cooperation Memorandum" and committed to carrying out PLDL projects on an additional 6,867 hectares of land within the three big watershed districts feeding the Miyun Reservoir (TNC, 2016). Both governments also committed to the adequate compensation of farmers throughout (TNC, 2016).
The Municipality of Beijing earmarked 100 million RMB (approximately 14 million USD) for water resources and environmental management between 2005 and 2010 (Fu, 2017; Bennet, 2009). As such, the megacity committed to financing the PLDL projects in local watersheds that feed its water supply. Payments from Beijing ensured that farmers participating in PLDL projects would have safeguarded incomes, and local governments claimed that residents would make a minor profit by farming subsidized crops. Farmers who agreed to transition their rice paddies into dry farming land received approximately 6,750 RMB (approximately 975 USD) per hectare per year from the Beijing municipality (Jing, 2008; Fu, 2017). In 2008, the payments were increased to 8,250 RMB (approximately 1,192 USD) per hectare per year (Fu, 2017).
The program's implementation period was between 2006 and 2020, although the project has since continued and transitioned into part of the national strategy for multi-province conservation efforts (Fu, 2017). The PLDL program generated several positive outcomes in terms of improved water quantity and quality, which exceeded the costs of reduced agricultural output. Furthermore, the land-use change resulting from the PLDL reduced fertilizer leaching significantly, reducing total downstream nitrogen and phosphorus levels by 28% and 89%, respectively (Liu et al., 2018). Studies by The Nature Conservancy indicated that both downstream beneficiaries and upstream providers benefitted from the program (TNC, 2016). The PLDL project increased the total water supply by 18.2 million cubic meters of water per year. It reduced the total phosphorus and nitrogen loads in the reservoir by 10.36 and 4.34 tonnes, respectively (TNC, 2016). Furthermore, all 6,867 hectares of rice paddies upstream of the Miyun Reservoir were successfully converted to dryland farming areas, decreasing irrigation by 51.5-66.4 million cubic meters per year (Fu, 2017; Jing, 2008).
Though not without its shortcomings, the PLDL program was, ultimately, able to successfully increase water supply and promote conservation in one of Beijing's most important water reservoirs. Initially, the program was planned to run from 2006 to 2010. Its demonstrated success in improving water quality and quantity ended up ensuring its longevity. Thereafter, similar paddyland to dryland conversion programs were included in future regional management plans for shared water resources, primarily between Beijing and Hebei Province (Fu, 2017; Bennet, 2009; Jing, 2008).
References
Land Conversion Programs for Water Security
Summary
To improve overall water quality and quantity for the city of Beijing, the local government initiated an ecosystem service provision near the Miyun Reservoir, exchanging paddy land for dry land.
Inflows to the Miyun Reservoir, one of Beijing's primary water sources, have steadily decreased from the 1960s to the 2000s, culminating in a 70% decrease in the forty years. The reservoir covers 188 square kilometers of land and has a drainage area of 15,800 square kilometers (one-fourth of which is located in Beijing) (Fu, 2017). Climate change has greatly reduced precipitation rates, ultimately resulting in less reliable replenishment of the Miyun Basin, Beijing's most important source of surface water (TNC, 2016; Zheng et al., 2013). Agricultural production has stressed the basin further through non-point source pollution and high water-demand crops, such as rice (Liu et al., 2018). Communities that live near the Miyun Basin primarily work in agriculture, largely cultivating rice for a living (Liu et al., 2018; Fu, 2017). By 2003, rice cultivation alone was consuming nearly 200 million cubic meters of water per year from the basin (TNC, 2016).
Issue
Intervention
To minimize the impacts of local agriculture (and rice cultivation, in particular) and to increase overall conservation of the Miyun Basin, Beijing initiated an eco-compensation initiative for farmers. Called "Paddy Land to Dry Land" (PLDFL), the program incentivizes farmers with compensation to convert their cropland from rice to less water-intensive crops, such as corn. The program was implemented in 2006 and scheduled to last until 2020 (Liu et al., 2018; Fu, 2017). PLDL was implemented as a joint initiative by the Beijing Local Development and Reform Commission (a subsidiary of Beijing Municipality) and the Chengde and Zhangjiakou Municipalities of Hebei Province. Beijing and Hebei organized the joint effort to protect shared water resources; the two provinces signed an MOU in 2006, stating that Beijing would be responsible for financing the program (Fu, 2017; Zheng et al., 2013).
The PLDL program was motivated by a number of intervening factors. Firstly, Beijing's growing population has resulted in a rapidly increasing water demand. Secondly, concerns regarding overall health and economic risks to local communities due to deteriorating water quality and quantity as a direct result of agricultural production also highlighted a need to address sustainable land use changes. Ultimately, in 2007, China's State Environmental Protection Administration identified four target areas for eco-compensation pilot projects; these included: nature reserves, critical ecological function zones, mineral development areas and watersheds (Bennet, 2009).
Although "eco-compensation" is not a widely used term globally, it is quite common throughout China. Eco-compensation projects became quite commonplace after the launch of the Conversion of Cropland to Forests Program by the Chinese government in 1999 (ADB, 2016; Bennet, 2009). Similarly, PLDL is a land-use conversion program that aims to protect water quality and quantity for Beijing's only surface water reservoir, by monetarily incentivizing farmers in the watershed to transition from paddy farming towards dry farming (Liu et al., 2018; TNC, 2016; Bennet, 2009). Farmers are offered a subsidy to switch from water-intensive rice cultivation to corn, which requires less water and does not require drainage, thereby resulting in less nutrient and sediment runoff as well as conserving water in the basin (Liu et al., 2018; TNC, 2016; Fu, 2017).
Challenges
Despite the many environmental benefits of the PLDL program, there were a number of notable shortcomings. Firstly, crop-switching offset some of the original beneficial effects, because farmers initially lacked the necessary knowledge regarding management of the new crop, which resulted in increases in fertilizer use to cultivate the new crops in some areas (Fu, 2017; Zheng, 2013). Furthermore, despite promises of fair compensation for farmers, critics have indicated that farmers were not compensated enough for the land change; some farmers saw their net income decrease by 11% annually between 2006 and 2014 (Liu et al., 2018; Zheng et al., 2013).
Outcomes
In 2003, a PLDL pilot project was implemented on 2,347 hectares of catchment area in Beijing province, saving approximately 4 million cubic meters of water annually. In 2006, a second PLDL project was implemented on 7,041 hectares of paddy land within the Hei River watershed, increasing water flow in the Hei River by 9 million cubic meters in a 10-month period. That same year, the Beijing City Government and Hebei Province Government signed the "Strengthening Economic and Social Development Cooperation Memorandum" and committed to carrying out PLDL projects on an additional 6,867 hectares of land within the three big watershed districts feeding the Miyun Reservoir (TNC, 2016). Both governments also committed to the adequate compensation of farmers throughout (TNC, 2016).
The Municipality of Beijing earmarked 100 million RMB (approximately 14 million USD) for water resources and environmental management between 2005 and 2010 (Fu, 2017; Bennet, 2009). As such, the megacity committed to financing the PLDL projects in local watersheds that feed its water supply. Payments from Beijing ensured that farmers participating in PLDL projects would have safeguarded incomes, and local governments claimed that residents would make a minor profit by farming subsidized crops. Farmers who agreed to transition their rice paddies into dry farming land received approximately 6,750 RMB (approximately 975 USD) per hectare per year from the Beijing municipality (Jing, 2008; Fu, 2017). In 2008, the payments were increased to 8,250 RMB (approximately 1,192 USD) per hectare per year (Fu, 2017).
The program's implementation period was between 2006 and 2020, although the project has since continued and transitioned into part of the national strategy for multi-province conservation efforts (Fu, 2017). The PLDL program generated several positive outcomes in terms of improved water quantity and quality, which exceeded the costs of reduced agricultural output. Furthermore, the land-use change resulting from the PLDL reduced fertilizer leaching significantly, reducing total downstream nitrogen and phosphorus levels by 28% and 89%, respectively (Liu et al., 2018). Studies by The Nature Conservancy indicated that both downstream beneficiaries and upstream providers benefitted from the program (TNC, 2016). The PLDL project increased the total water supply by 18.2 million cubic meters of water per year. It reduced the total phosphorus and nitrogen loads in the reservoir by 10.36 and 4.34 tonnes, respectively (TNC, 2016). Furthermore, all 6,867 hectares of rice paddies upstream of the Miyun Reservoir were successfully converted to dryland farming areas, decreasing irrigation by 51.5-66.4 million cubic meters per year (Fu, 2017; Jing, 2008).
Though not without its shortcomings, the PLDL program was, ultimately, able to successfully increase water supply and promote conservation in one of Beijing's most important water reservoirs. Initially, the program was planned to run from 2006 to 2010. Its demonstrated success in improving water quality and quantity ended up ensuring its longevity. Thereafter, similar paddyland to dryland conversion programs were included in future regional management plans for shared water resources, primarily between Beijing and Hebei Province (Fu, 2017; Bennet, 2009; Jing, 2008).
Issues |
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Water Scarcity and Access |
Solutions |
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Alternative Water Sources & Resource Diversification |
References
Asian Development Bank (ADB).(2016). Toward a national eco-compensation regulation in the People’s Republic of China. Asian Development Bank. https://www.adb.org/sites/default/files/publication/212726/eco-compensation-regulation-prc.pdf
Bennett, M. (2009). Markets for Ecosystem Services in China: An Exploration of China’s “Eco-Compensation” and Other Market-Based Environmental Policies (A Report from Phase I Work on an Inventory of Initiatives for Payments and Markets for Ecosystem Services in China). Forest Trends. https://www.forest-trends.org/publications/markets-for-ecosystem-services-in-china/
Fu, C. (2017). Paddy Land-to-Dry Land Programme in the Miyun Reservoir Watershed of China’s Capital Region (Ecosystem-Based Adaptation Through South-South Cooperation). EbA South. http://www.ebasouth.org/sites/default/files/case_study_full/EbA%20South%20case%20study%2012_Miyun_0.pdf
Development Asia. (2017, August 15). Eco-Compensation and What It Means for the World. Development Asia. https://development.asia/explainer/eco-compensation-and-what-it-means-world
Forest Trends. (n.d.). The Beijing Eco-Compensation Program, China: Connecting Megacities and Their Rural Neighbors for a Green Economy. Retrieved August 24, 2020, from https://www.forest-trends.org/wp-content/uploads/2017/09/Project_Profile_China.pdf
Jenny, H., Wang, Y., Fan, M., Bulson, P., Beekma, J., & Peibin, L. (2019). Water Conservation Strategies for Beijing Capital Region, People’s Republic of China (0 ed., ADB Briefs) [ADB Briefs]. Asian Development Bank. https://doi.org/10.22617/BRF190566-2
Jing, G. (2008). Exploring on Forest Ecological Compensation (FEC) Mechanism of Beijing. https://www.forest-trends.org/wp-content/uploads/imported/gan-jing-pdf.pdf
Liu, J., Zang, C., Tian, S., Liu, J., Yang, H., Jia, S., You, L., Liu, B., & Zhang, M. (2013). Water conservancy projects in China: Achievements, challenges and way forward. Global Environmental Change, 23(3), 633–643. https://doi.org/10.1016/j.gloenvcha.2013.02.002
Liu, M., Min, Q., & Yang, L. (2018). Eco-compensation standards for agricultural water conservation: A case study of the paddy land-to-dry land program in China. Agricultural Water Mangement, 204, 192–197. https://doi.org/10.1016/j.agwat.2018.04.004
The Nature Conservancy (TNC). (2016). China Urban Water Blueprint: Exploring Innovative Conservation Solutions to China’s Water Challenges. The Nature Conservancy. https://s3.amazonaws.com/tnc-craft/library/Urban_Water_Blueprint_Region_China.pdf?mtime=20180211223935
Zheng, H., Robinson, B., & Liang, Y.-C. (2013). Benefits, costs, and livelihood implications of a regional payment for ecosystem service program. Proceedings of the National Academy of Sciences, 110(41). https://doi.org/10.1073/pnas.1312324110