| Abstract:
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30 years reform and opening-up has brought unprecedented prosperity to Chinese economy. However, China paid heavy environmental costs for its economy booming, and a series of social problems also been induced, especially regional inequlity. The lack of ecological compensation mechanism is an important reason of the ecological environmental deterioration. The first decade of development of the West Regions has passed, and the second ten years is about to begin. It is both a challenge and an opportunity to the Western china. In terms of ecological environmental, it will be important to the sustainable development of western china. Therefore, to deal with the relationship of economic development and environmental protection, we should establish and improve the ecological compensation mechanism. In view of this, this article will detail the development of current ecological compensation, then analyze two key scientific issues of the ecological compensation——public goods and selection mode of ecological compensation. At last，the author proposes the strategic vision in ecological compensation.
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