Abstract:An urgent and realistic demand for constructing a systematic eco-compensation scheme and policy framework is currently rising up in China.However,there are some misunderstandings and blind spots in the theory exploring and policy practices of the eco-compensation.Based on the previous researches,this paper describes the basic concept of the eco-compensation in the perspective of productivity and relation of production;clarifies the links and discrepancies between eco-compensation and other environmental policies;classifies the issue types of the eco-compensation in terms of public goods property;analyzes the policy boundary among different eco-compensation issue types.Finally,the policy option,design,general consideration and preferential areas of implementation of China's eco-compensation are put forward.