| Good ecological environment has always been the essential external conditions to human survival and development. Various types of ecosystems provide not only a variety of material resources needed for economic development for mankind, but also a steady stream of supply with all kinds of human essential immaterial ecological services. However, with the continuous development of economic and society, human demand on nature is increasing. Environmental pollution and ecological damage caused by humans have been making the self-repair capacity of the ecosystem destruction damaged, leading to a variety of natural disasters. In 1952, unprecedented smog in London claimed more than 12,000 lives; recent years haze index in Beijing in continued to blast the table, so that millions of people’s lives and health have been threatened. These facts warn us that it is imminent to develop and implement scientific and effective ecological compensation system.Since 1979, China’s first proposed the "polluter pays" scenario, then, a series of ecological protection laws has been introduced. By way of government financial subsidies to provide financial support for ecological compensation system, in different regions of China and the establishment of many national key ecological function areas, the implementation of ecological construction projects, to compensate for the damaged ecosystem, we made a lot of remarkable achievements.However, with the respect to our long-standing and high pollution, high consumption patterns of development, the existing ecological compensation system obviously insufficient to maintain a balanced development of the ecosystem, the need to constantly refined and innovation.Firstly, the paper makes a simple summary for the implementation and research status of domestic and foreign ecological compensation system, as well as the theoretical tools overview will be used in the article. In support of the basic theory of the New Institutional Economics, we will analyze the current situation of ecological compensation system. At the same time to tease out of existing problems of ecological compensation system. Property rights theory, transaction cost theory and agency theory being analysis tool, the causes of these problems were summarized, and finally targeted put forward policy recommendations.Ecological Compensation and economic development, are long-standing human progress requires systematic project, we need all the people involved in order to achieve good results. Based on the economical analysis and summaries of ecological compensation system in China, I hope to make the ecological compensation issues to receive more attention, and the theory with practice more closely. |