Journal Article

Research on the Performance Evaluation System for Ecological Product Value Realization Projects: A Case Study of the Comprehensive Water Environment Management Project for a Drinking Water Source

Chen, Yuan-Hua, Wu, Qing-Lian, Wang, Nan-Nan, Chai, Chang

2026

Overview

Establishing a mechanism for ecological product value realizing (EPVR) is a critical component of China’s ecological civilization strategy, aimed at translating the concept that “lucid waters and lush mountains are invaluable assets” into actionable economic policies. Although central government investments in the form of project for EPVR have increased significantly, surpassing CNY 700 billion by 2024, studies rarely focus on these projects and how to evaluate them. Evaluating the performance of EPVR projects is essential for optimizing resource allocation, enhancing project accountability, and ensuring the sustainable realization of ecological, economic, and social values. This study innovatively defines the conceptual connotation of EPVR projects and constructs a comprehensive performance evaluation system based on a “benefit-cost” analysis, comprising a multi-dimensional indicator system, quantifiable calculation methods, and explicit evaluation criteria. As water source protection projects are typical EPVR projects, the comprehensive water environment management project of Hongfeng Lake is selected for an in-depth empirical study. The results reveal that (1) the total annual benefits amount to CNY 923.66 million, dominated by ecological benefits (84.04%); (2) with an investment of CNY 1194.66 million, the project yields a net loss and a moderate performance index (PCPI = 0.77); (3) the project performance is primarily affected by weak economic value conversion stemming from restrictive zoning policies and underdeveloped market mechanisms for ecological services; and (4) integrated development pathways—such as ecotourism, eco-aquaculture, and ecological branding—are proposed to enhance the long-term sustainability of the project. The Hongfeng Lake case establishes a replicable framework for global assessment of analogous projects and delivers actionable insights for enhancing benefit–cost ratios in public ecological initiatives, with costs confined to data collection, modeling, and validation. Therefore, this study contributes a quantifiable and reproducible tool for the full lifecycle management of EPVR projects, thereby facilitating more informed government decision-making. Key findings reveal the following: (1) A comprehensive “Benefit-Cost” performance evaluation framework, pioneered in this study and tailored specifically for individual EPVR projects, surpasses regional-scale accounting methodologies like Gross Ecosystem Product (GEP). (2) A novel consolidated metric (PCPI) is introduced to integrate ecological, economic, and social dimensions with cost input, thus enabling direct cross-project comparison and classification. (3) The framework operationalizes evaluation by providing a detailed, adaptable indicator system with explicit monetization methods for 26 distinct benefits, thereby bridging the gap between theoretical value accounting and practical project assessment. (4) The empirical application to a drinking water source protection project addresses a critical yet understudied category of EPVR projects, offering insights into “protection-oriented” models.

• Publisher: MDPI AG
• Subject: Accounting / Carbon sequestration / Case studies / Construction / Cost analysis / Drinking water / Economic aspects / Ecosystems / Environmental aspects / Environmental restoration / Infrastructure / Lakes / Management / Natural resources / Performance evaluation / Project evaluation / Quantitative analysis / Water / Water conservation