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Land systems in drylands have been experiencing increasing conflicts among multiple land functions. The improvement of one function is often at the cost of other functions, and trade-offs occur. Previous studies often cannot adequately address the fuzziness and lack an optimal benchmark when assessing land multifunctionality, and neglect the nonlinear features when quantifying the trade-offs. Taking the Heihe River Basin (HRB) in China as a study area, we applied the set pair analysis (SPA) to develop a novel framework for assessing land multifunctionality at a grid scale from the production-living ecological aspects. We then utilized the constraint line fitted with segmented quantile regression to identify the trade-offs among land functions.The results showed that our developed model could effectively measure land multifunctionality. The overall land multifunctionality in the HRB increased between 2000-2015, and the increased production and living functions made more contributions. From 2000 to 2015, the relationship between production function and ecological function changed from the status of synergy to trade-off, and the degree first increased and then decreased. The coupling coordination degree index showed that the coordination among land functions was high in the south and low in the north, which was mainly controlled by ecological functions. The effects of natural and anthropogenic drivers on land functions showed nonlinear characteristics, and thresholds existed for some factors showing the abrupt change in influence. We concluded that our research provides reliable and detailed information about the interactions among land functions, which is essential for sustainable land use and territorial spatial planning.

Eco-compensation is an important mechanism when applying the theory of ecosystem services to practical development, which translates the external and non-market value of the environment into real financial incentives for local actors. Scientifically formulating feasible and credible compensation standards is the most critical and key step to adjusting the benefits received by environment protectors and beneficiaries. The Inner Mongolia agro-pastoral zone is an important ecological area with an undeveloped economy in Northern China. The implementation of eco-compensation policies contributes to ecological restoration and poverty alleviation. Taking Horqin Left Back Banner, Inner Mongolia, China as a study case, a quantitative model of a non-point source pollution eco-compensation program was established by using emergy synthesis—a thermodynamics-based method in ecological economic systems—to create a comprehensive eco-compensation standard. The results showed that the eco-compensation amounts for non-point source pollution were generally below 10% of the regional gross domestic product (GDP). A 11–20% reduction in fertilizer would be accepted according to the field investigation and the optimal eco-compensation strategy reduced the phosphate fertilizer application by 20% with a compensation standard of $379.63/ha/year, which was similar to the farmers’ willingness to accept compensation. For the accurate creation of a non-point source pollution eco-compensation program, the emergy synthesis overcomes the inconsistency in the quantification of the material flow, ecological flow, and economic flow, guaranteeing the sustainable implementation of non-point source pollution eco-compensation projects.