Ecological compensation institution plays a key role in promoting ecological protection and coordinating regional development. However, how to establishing effective and operational ecological compensation framework is still a great challenge. We summarized the ecological compensation practices in China and analyzed their problem, including lack of systematic institution design, deficient participation of stakeholders, lacking for scientific identification of ecological compensation scope, lower ecological compensation standards and absent supervision mechanism. Finally, the following strategies for ecological compensation institution establishment were put forward: fundamental principle for establishing ecological compensation institution, scientific definition of compensatory scope, identification of the compensatory carrier and object, building scientific method for compensatory standard accounting, and corresponding policy measures.
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