Abstract: Western China is rich in mineral resources. However, because there exist multiple interest demands between all the compensation entities (the central government, mineral enterprises, the local governments of the West and the East) in the eco-compensation system, the existing eco-compensation mechanism has thus lost its operation platform, leading to serious waste of resources and deterioration of environment. Therefore, during the construction of the eco-compensation mechanism for the Western part, the central government has to strengthen its support and intervention in its environmental protection policies and perfect the coordinated reforms on resource taxes from the institutional design. Meanwhile, the eco-compensation fund for the Western part should be established, so as to broaden the fund raising channels by actively mobilizing all the parties concerned.

Key words: mineral resources; eco-compensation mechanism; game mode; interest conflict