Research on Watershed Eco-Compensation Mechanism Based on Virtual Water Strategy

The implementation of the virtual water strategy has broken the traditional mode of food production and agricultural water use, which has enhanced conservation of water resources and improved the ecological environment. However, this also affects the interests of the governments and the farmers of the upstream basin to a certain extent. From the view of virtual water strategy, this paper set up the game model of all parties within the basin and analyzes the "prisoner\´s dilemma" and "boxed pigs game" due to conflicts between individual rationality and collective rationality. Then there is an introduction of incentive constraint mechanism according to the ecological compensation and the implementation of the mechanism in China\´s basin.