Economic analysis of wetland resource protection: a case study of Beijing Wild Duck Lake

A wetland ecosystem is one of the most important ecosystems on earth. It plays important roles in ecological balances and provides human beings with products such as food, water and entertainment. Therefore, wetland resource conservation is one of the key issues in global ecological environment protection. Based on the analysis of economic attributes of wetland resource conservation and the theories of property rights, public goods and externality, this research, taking the Beijing Wild Duck Lake (BWDL) wetland as an example, emphatically analyzed (1) the externality in the processes of BWDL resource protection and (2) the costs and the profits in the BWDL resource utilization. The results show: (1) Individual profits may not be compensated due to positive externality, which leads to the deficiency of resources during the wetland protection. We hold that a reasonable compensation mechanism should be built in order to compensate the people who participate in the protection of wetlands. Only when their individual profits were safeguarded then can the social optimal point be achieved. In addition, people who destroy wetland resources may not be punished due to negative externality. If there is no valid constraint mechanism for these behaviors of destroying wetland resources, deterioration of wetland resources cannot be avoided. Hence, in the view of externality theory, the primary reason caused the wetland deterioration is the lack of compensation and constraint mechanism of positive and negative externality. (2) Free riding will lead to the deterioration of wetland resources. Taking cage fish culture in the BWDL as an example, we analyzed the negative effect from free riding. Results show that free riding existed in the utilization of wetland resources, resulting in the excessive use of wetland resources. Once the carrying capacity of local wetland ecosystems was broken, wetland resources will deteriorate further. Hence, one of the most challenges facing by wetland resources protection is how to coordinate the contradiction between cost and benefit during the protection and utilization of wetland resources. (3) A clear property rights is good for wetland resources protection. Free riding and externality are, fundamentally, results of unclear property rights of wetland resources. In China, most of natural resources with characteristics of public goods belong to two types: state or collective ownership. The allocation efficient of wetland resources will be low