Analysis of the Cost-benefit on Ecological

Environment

Yu Miao1, Biying Xu2

1.School of Finance, Anhui University of Finance and Economics, Bengbu, 233000, China

2.School of Accounting, Anhui University of Finance and Economics, Bengbu, 233000, China

Abstract: With the development of the society, the eco-environmental problems have gradually attracted people's attention, and the environmental cost needs to be considered in investors' budget plans. Based on the current situation of China's ecological environment, this paper will use analytic hierarchy process, fuzzy comprehensive evaluation and principal component analysis to analyze the indexes affecting ecological cost-effectiveness by establishing AHP-FCE model. The purposes of the study are to incorporate ecological costs into the economic costs of land development projects, and help land users to conduct cost-benefit analysis. 

For stage II, we take 11 prefecture-level cities in Shanxi Province as the research object. First, input the data of 11 prefecture-level cities into the hierarchical structure of stage I so that we can polish relevant indexes according to the different characteristics. Then, we obtained the weight of each index and establish the AHP-FCE model, using MATLAB to evaluate comprehensively the ecological benefits of prefecture-level cities and calculate the scores. Finally, the eco-efficiency scores of them are ranked. The results showed that there are half of the 11 autonomous counties having achieved good ecological benefits.

For stage III, we use 31 provinces in China as the research object. Based on the research findings above, we use the PCA to reduce dimensionality and screen indicators, selecting three principal components such as social factor, environmental factor and energy factor that have a good explanation for ecological cost-effectiveness, and establish an ecological cost-benefit assessment model. Finally, using SPSS to evaluate the ecological costs and benefits of 31 provinces in China, and the rankings of eco-efficiencies in 31 provinces were gained.

At last, we conducted error analysis and sensitivity analysis of the models while comprehensively evaluating the advantages and disadvantages of the models, and popularized the models.

Keywords: Eco-cost-effectiveness; Ecosystem services; AHP; FCE; PCA; MATLAB