Industrialization model of enterprises participating in ecological management and suggestions: A case study of the Hobq Model in Inner Mongolia

Yong Chen , Tao Wang *, LiHua Zhou ,2, Rui Wang

1. Key Laboratory of Desert and Desertification, Northwest Institute of Eco-Environment and Resources, Chinese Academy of Sciences, Lanzhou, Gansu 730000, China

2. Institutes of Science and Development, Chinese Academy of Sciences, Beijing 100190, China

3. College of Land and Resources, China West Normal University, Nanchong, Sichuan 637002, China

ABSTRACT Calling upon all nongovernmental sectors of the society is important to cope with the ecological crisis brought about by rapid development. Enterprises are the active agent of socialist market economic activities and possess a prominent position in the ecological civilization construction of the new age. Making use of the active agent role of enterprises and stimulating the green development of enterprises are essential to realizing the dream of a beautiful China. This paper discusses the development and management experiences of a typical ecological industrialization model, that of the Elion Resources Group in Inner Mongolia. Existing problems are disclosed, and feasible suggestions are given： (1) accelerate the registration of lands to protect legitimate rights and interests, (2) perfect the land-use administration system and make it cover all national land space, (3) perfect the natural resources management system, and (4) compile balance sheets of natural resources and strengthen accountabilities.

Keywords: ecological management; resource management; land use; green development

1 Introduction

China has long adopted an extensive economy with high material consumption, high energy consumption, and high pollution to pursue rapid economic development (Chen, 2003; Naughton, 2006). The plundering of natural resources directly causes serious ecological crises. Ecological management depends on a series of national and local governments'restoration projects and protection policies. These measures have achieved some success but are far from sufficient in considering diversity, big numbers,and the extensive distribution of ecological environmental problems (Lu et al., 1999). Calling upon all sectors of the society to participate in ecological management is urgly required. Enterprises are important agents of socialist market economic activities and have the advantages of abundant financial resources,highly efficient operation, and close cooperation with the government. However, enterprises are typical rational-economic organizations that pursue profit; and ecological environmental problems are public and ex-ternal. There seems to be a contradiction between the behavior of enterprises to pursue profits and protect the ecology (Sekerka and Stimel, 2011). A green-development avenu was explored, and outstanding achievements were gained through several enterprises'ideology of reform and firm actions in ecological management in recent years, such as the Hobq desertification control by the Elion Resources Group in Inner Mongolia. Based on more than 20 years of practice, the Elion Resources Group in Inner Mongolia follows the principles of marketization, industrialization, and public welfare; sticks to development and protection simultaneously; focuses on the goals of human-land harmony, industrial development, prevention, and control of desertification; improves people's livelihood; implements ecological restoration, land reclamation, and industrial development; and explores a development system of "investment for enterprise industrialization and public welfare, the market participation of farmers and herdsmen, multiple investments,and benefits multi-parties" (the Hobq Model). Given the acceleration of ecological civilization construction in China, enterprises are participants; how to encourage more enterprises to participate in ecological management, and how to integrate green-development philosophy with ecological management are key scientific problems that have to be solved.

In the existing studies, research on the ecological management of enterprises mainly discusses the internal and external economic problems during the process of the company's development. An internal perspective pays more attention to their own ecological cost, that is, the pursuit of maximization of profits, including the recycling of production waste (Spengler et al., 1997; Brennan and Ackers, 2004; Chen et al.,2009) and the efficiency of resource utilization of enterprises (Umble et al., 2003; Gibbs and Deutz, 2007;Chen et al., 2014). An external perspective mainly discusses the relationship between the individual enterprise and the society as a whole, the short-term interests and the long-term interests. Sekerka and Stimel(2011) explored the importance of social responsibility for the sustainable development of an eco-enterprise from the theoretical level. Jing (2008) discussed the example of Shell Brent Spar as a case study,through which the author offered an analysis of the living environment that enterprises were facing; and he believes that it is a wise choice for enterprises to take their social responsibility seriously. Neither the internal economic nor the external economic problems can be separated from the original production system. However, the number of research studies about enterprises devoted to regional ecological management and actively exploring the development of ecological industrialization is relatively few. In fact,such enterprises are also very few.

Considering the unique geographical location, resources, and environment in Inner Mongolia, the local ecological civilization construction has important significance in maintaining ecological safety in China and plays an important role in demonstrating and leading national ecological construction. Studying the ecological economic behaviors of typical enterprises in Inner Mongolia can provide more extensive references for local and large-scale enterprise involvement in ecological civilization construction. The selected methodology was a case study approach. This explorative approach allowed for an initial assessment of the Hobq Model regarding the new development and management mechanisms and discovery of the main problems requiring further scientific studies. The results are expected to provide feasible suggestions for China's ecological civilization construction.

2 New demands and future trends of ecological management

2.1 The realization of ecological safety is challenged

Realizing ecological safety in Inner Mongolia is difficult, owing to the area's vulnerable ecological environment. China's ecological civilization construction is influenced by natural physiographic conditions,its social economic development level, and the orientation of its main functional areas, which have certain territorial differences. Inner Mongolia crosses over northeastern, northern, and western China and possesses the largest prairie and forest resources in China. Lakes, wetlands, deserts, and sandy lands are abundant in China. Inner Mongolia is an important ecological functional zone and ecological safety barrier. However, serious waste of natural resources is seen in Inner Mongolia, owing to overdevelopment and extensive utilization, which result in many ecological environment problems such as desertification and loss of water and soil. Therefore, the vulnerable ecological environment in Inner Mongolia is one of the greatest challenges to local ecological safety.

2.2 The Beijing-Tianjin-Hebei coordinated development is challenged

Inner Mongolia is the most important ecological barrier belt in North China because of its unique location. Given its unique geographical location, Inner Mongolia plays an important role in the coordinated development of Beijing-Tianjin-Hebei. Xi Jinping,the general secretary of the Communist Party of China, once declared, "Ecological conditions in Inner Mongolia are related to the survival and development of local nationalities as well as ecological safety in North China, Northeast China, Northwest China, and even the whole country.". First, ecological construction in Inner Mongolia, which is an important ecological barrier belt and the natural barrier belt against deserts in West China and agricultural regions in East China, determines the quality of life in Beijing,Tianjin, and Hebei. Second, Inner Mongolia possesses rich coal resources and is the second gold belt.It ranks first in terms of wind-power generation(21.977 billion KWH) and total wind-energy reserves.Developable technological resources reach 0.15 billion KWH and account for about half the land in China. It provides reliable energy sources for the coordinated development of Beijing-Tianjin-Hebei.Third, Inner Mongolia has 4,200-km boundary line and borders with Mongolia and Russia. It has numerous border ports and maintains close economic and technological cooperation with Beijing-Tianjin-Hebei,Northeast China, and Northwest China. Given the prominent position, Inner Mongolia is the economic hinterland of the coordinated development of Beijing-Tianjin-Hebei. The formation of an openingup pattern along the border offers Beijing, Tianjin,and Hebei the most convenient land access to international cooperation and is conducive to the implementation of a belt-and-road strategy. The three regional values (i.e., ecological barrier, energy security, and international channel) of Inner Mongolia that determine the strengthening of ecological civilization construction and promote the coordinated development of Beijing-Tianjin-Hebei are the main challenges to local ecological civilization construction.

2.3 The realization of land-capitalization management is challenged

The economic value of land resources in Inner Mongolia is underdeveloped, which brings significant challenges to the realization of land-capitalization management. Inner Mongolia covers a land area of 1,183,000 km2, which accounts for 12.3% of the total land area in China. Grasslands, forests, and per capita cultivated land areas rank first in China. Inner Mongolia has a vast desert and is the largest prairie pastoral area in China. Given sand damages, Inner Mongolia has viewed the desert as the "common enemy" of human beings for a long time, which leaves largescaled desertified lands unused. The backward landcapitalization management and failure in fully exploring the economic value of the land resources are challenges to ecological civilization construction. Inner Mongolia must urgently perfect its land-capitalization management for it to play the decisive role of market in land-resource allocation and to increase land-resource utilization.

Figure 1 Location of the Hobq Desert and ecological industrialization model of the Elion Resources Group

3 Experience gained from the Hobq Model

3.1 Focus on public welfare and enhance enterprise social responsibility

Fulfilling social responsibility is an important way for enterprises to achieve sustainable development,and sustainable development is the fundamental goal of enterprises in fulfilling social responsibility. Controlling desert expansion and facilitating the change of desertified lands are important goals of enterprises in Inner Mongolia that participate in ecological manage-ment. Desertification management is a system project characteristic of big investments, long periods, and slow effect; and the development of green economy in deserts is an extremely high risk undertaking. Thus,Elion Resources Group focused on the goal of public welfare and has been committed to desertification management and desert industrial development,which well discharges social responsibility. The Hobq Desert has been transformed at a large scale, and a green area of 6,000 km2has been achieved and accounts for one-third of the total Hobq Desert area.Ecological infrastructure construction, which includes aerial seeding and lake, road, and factory protection, accounts for more than 40% of the desertification management by the company. The restoration of ecological resources has helped more than 100,000 people overcome poverty and has created over 30 billion RMB gross value of ecosystem service by following the public welfare, industrialization, and marketization mode. Moreover, it has realized the social responsibility of "greening one desert and helping local residents become rich". The Elion Resources Group created a novel development model by combining industrial development and desertification control.

3.2 Build a protective wall for economic social development by ecological protection

Ecological protection is the basis of sustainable economic and social development. The "greening"ecological industrial model of the Elion Resources Group is closely related to its developmental history.The Elion Resources Group operated a salt field at the Hobq Desert border 20 years ago. It was restricted by the desert and had to undertake a large transportation cost every year. The enterprise cooperated with the local government and built the first desert-crossing highway to achieve sustainable operation of the salt field. Moreover, it protected the highway from quick-sand by planting trees. After the salt field was successfully protected, the Elion Resources Group constructed a 250-km-long and 10-km-wide sand-prevention forest belt along the northern border of the Hobq Desert and the southern bank of the Yellow River. This belt effectively inhibits sand from spreading, reduces new annual sediments in the Yellow River, and improves the ecological environment surrounding the company.Ecological management behavior under such a sustainable perspective lays a solid foundation for the subsequent development of the company.

3.3 Develop ecological industry using ecological protection and industrial development as the carrier

The deep integration of ecological protection and industrial development is the lifeline of sustainable development of enterprises. Considering the high cost for desert restoration and maintenance, creating an industrial chain of desert restoration is an opportunity for the green development of enterprises. Combining"peripheral ecological protection and core land development" is the unique green cyclic-development model of the Elion Resources Group. The company established the bioengineering and pharmaceutical operation from a single early planting of Glycyrrhiza uralensis to the merger, acquisition, and foundation of multiple medical production, R&D, and marketing enterprises. Moreover, depending on the rich land, sunshine, and biological resources in the Hobq Desert,the Elion Resources Group developed a biomass-energy operation based on cutting Salix psammophila, a desert tourism industry based on providing "green escapes", the new-material industry focusing on sands,and the photovoltaic industry focusing on solar energy in the desert. Instead of blind land development in the expansion of the industrial chain, the Elion Resources Group committed to developing ecological industry by attaching equal attention to industrial development and ecological protection. For example,G. uralensis and S. psammophila, which are renewable energy sources, are planted together. Elion's land development builds the 3D ecological model of sand prevention and economic development. When developing clean photovoltaic energy, green industrial-crop plantation and cultivation were implemented under photovoltaic panels and achieved desert restoration,green-energy production, and creation of green jobs.The Elion Resources Group has changed from passive desertification control to positive desert restoration and has gained economic returns while fulfilling its social responsibility.

3.4 Implement scale development by transfer of land-use rights

Large-scaled land resources are the important carrier and spatial basis of industrial development.Desertification control for the public welfare or industrialized desertification control requires large-scaled land resources to achieve scale development. The Elion Resources Group gained land-use rights through the separation of ownership and control rights. Given that all local land resources, which include desert areas, are owned by village collectives in household contracts, the Elion Resources Group acquired the land-use rights from peasant households by renting,subcontracting, transferring, and offering shares of desert land, according to different land-use types. All the transformed 6,000 km2desert area was acquired through the transfer of land-use rights. To boost the development of local landowners, the Elion Re-sources Group adopted the "company and peasant household" model to attract involved and uninvolved peasant households to participate in ecological construction and the desert-tourism industry. This approach increased the income of the public and further facilitated the scale development of the company.

4 Analysis of key problems confronting enterprises participating in ecological management

4.1 Difficulty in fulfilling rights and interests of enterprises

The Elion Resources Group gained tremendous ecological benefits from ecological restoration of transferred lands. However, the ownership of ecological restoration results after the expiration of the land transfer is controversial (e.g., the question of who own trees planted on the Hobq Desert). No explicit laws and regulations are available, which makes protecting the long-term benefits of enterprises difficult.Even in the contract of land transfer, landowners who have the consciousness of small peasants may steal ecological results, which causes high maintenance costs to enterprises every year. Enterprises could not depend on anybody after suffering benefit losses, given the rural-land marketization exploration, and because no standard or perfect transfer procedures and management system had been established.

4.2 Inaccurate approval of sand dune as grassland

The registration of lands is beneficial to protect the rights and interests of peasants and land transfer.For the purpose of effective management and the use of prairies, Inner Mongolia issues the Use Permit of Prairie and Ownership Certificate of Prairies according to state or collective ownership of prairies. However, the word, "prairie", in these two certificates also covers moving dunes with rare vegetation except for natural prairies and artificial grasslands. This term is disadvantageous for the use management of grassland resources and macroscopic resource development and planning. Issuing certificates of prairies to sand dunes increases desertification control costs and reduces efforts of enterprises in desert management.

4.3 Random alternation of land-use patterns

Land misuse is observed when enterprises develop green ecological industries. For example, sand land transferred from peasants for ecological restoration is used for development of photovoltaic power stations and mine exploitation. Resources of the Hobq Desert are used fully; however, such unapproved use of unused lands as construction land changes the land-use pattern and intensifies the conflict between enterprises and local peasants.

4.4 Unorganized management systems

Given that desertification has brought numerous damages for a long time, related national departments,such as the Land and Resources Bureau, the Water Conservancy Bureau, the Ministry of Forestry, and local governments in Inner Mongolia, have adopted corresponding management plans and measures.Desert restoration is a long-term comprehensive system project, and causing periodic negative responses is easy once it fails (Liu et al., 2014). Given the unorganized national management systems, functional departments have difficulty coordinating with each other. These departments focus on their own responsibilities, which results in ecosystem damages. Moreover,they could not identify problems, owing to their different outlooks. Formulating specific, long-term planning according to local conditions is difficult.

5 Suggestions for ecological management

5.1 Accelerate registration of lands to protect legitimate rights and interests

China should clarify the subject of property rights and the subject of responsibility in desertification control and ecological construction as soon as possible to promote ecological civilization construction and encourage more social powers to engage in desertification control. The registration of ecological resources in Inner Mongolia should be treated differently from the registration of rural collective lands. The contract term for different types of land resources should be determined differently. Desert ecological restoration should give full consideration to the characteristics of the long period and slow effect; thus, a long-term contract relationship is permitted. A pledge and guarantee of use, benefits, transfer, and contracts for the management rights of desert lands are allowed to contractors. The rights of use shall be determined according to the characteristics of different responsibility agents and ecological management effects, which enables efficient flexibility after the registration of land.Benefit management after the registration of rights shall be perfected to protect legitimate rights and the interests of agents of property rights.

5.2 Perfect the land-use administration system and coverage of all national land space

Land-use control ensures the reasonable use and optimal configuration of land resources and the facilitation of harmonious economic, social, and environ-mental development. The country regulates land-use patterns and conditions through coercive forces of the state, such as the overall planning of land use.Landowners and users must follow the land-use pattern and conditions strictly. It is the basic system that strengthens land management. Many problems result from land use in Inner Mongolia. These problems relate to incomplete land-market information, poor monitoring, and unscientific planning. To perfect the land-use control system, related laws and regulations must be explicit and strictly implemented. The land-use classification system must be perfected, ecological land-classification standards should be made scientific, and the development of "ecological industrial land"must be protected to serve for ecological civilization construction. Reasonable land-use planning and strengthening operability of planning must be pursued. Land-related systems must be perfected, and the generalization of land-use control in China must be smooth. Thus, land-use control can cover all land spaces in Inner Mongolia. Moreover, permanent basic farmlands, urban-rural construction boundaries,and ecological protection in Inner Mongolia should be determined actively.

5.3 Perfect the natural resource management system

A perfect natural resource management system is an intrinsic requirement for establishing a systematic and complete ecological civilization system. Several prominent problems in China's ecological environmental protection are related to the imperfect system.The most important reason is the absence of the owner of natural resource assets, which are owned by all people, making it difficult to fulfill rights and interests. First, the concept that mountains, waters,forests, fields, and lakes are one living community should be established to address this problem. According to the integrity of ecosystems, a uniform natural resources asset-management department should be established to fulfill the responsibilities of the owner. The assignment of the responsibility of the management department and the supervision department should be distinguished. That is, the management department is to be mainly responsible for managing the quantity, use, and scope of resources and implementing the rights and interests of the resource owner. The supervision department is to be mainly responsible for the protection, restoration, and sustainable utilization of resources. Second, a diversified natural resource ownership system should be established to make a clear boundary between land owned privately and land owned collectively. The owners of forests, prairies, and deserts with clear property rights should be determined as soon as possible. Third, the related legal system for natural resource management is to be perfected; and the legislation on natural resource protection is to be strengthened.

5.4 Compile the balance sheet of natural resources and strengthen accountabilities

First, the theory and method of the balance sheet of natural resource assets shall be determined. Delineation of China's natural resource characteristics and domestic- and foreign-related theories mention that the theoretical framework for compiling the appraisal and balance sheet of natural resource assets in Inner Mongolia shall be established. Thus, the guidance for compiling the balance sheet of natural resource assets is established, and the evaluation model of natural resource reverses is developed. The technique and methods to compile the balance sheet of natural resource assets shall be studied according to the database of natural resource reserves in Inner Mongolia,which includes the measurement methods of quantity and the values of total assets, debts, net assets, and owner's equity of various natural resources. An ecological civilization-oriented assessment system shall be created; and resource consumption, environmental damages, and ecological benefits shall be included in the comprehensive evaluation system of economic and social development in Inner Mongolia. The goals,contents, methods, and indexes for the accountabilities assessment of leaders in Inner Mongolia are explored. The accountabilities of cadres shall be determined according to the variation of natural resource assets over the term of office. These efforts will enhance the application of audit results and establish the lifelong accountability mechanism of ecological environmental damages in Inner Mongolia.

6 Conclusions

Influenced by the extensive development model in the past, China's ecological management is facing new demands and challenges. In the new era of accelerating the construction of ecological civilization in China, it is urgent to mobilize all sectors of the society to participate in ecological management. The Hobq Model, as a typical representative of enterprises participating in ecological management and industrial development, provides a new way for global desertification control. This case study summed up the experiences gained from the Hobq Model, including focusing on public welfare and enhanced enterprise social responsibility, building the protective wall for economic social development by ecological protection, developing ecological industry using ecological protection and industrial development as the carrier, and implementing scale development by transfer of land-use rights. Affected by the Chinese system,history, and management aspects, the Hobq Model also has some shortcomings： For example, difficulty in fulfilling rights and interests of enterprises, inaccurate approval of sand dune as grassland, random alteration of land-use patterns, and unorganized management systems. Finally, in view of the existing problems and to stimulate the participation of more enterprises, some suggestions are put forward： accelerate the registration of lands to protect legitimate rights and interests, perfect the land-use administration system and coverage of all national land space,perfect the natural resource management system,compile a balance sheet of natural resources, and strengthen accountabilities.

Acknowledgments:

This work has been financially supported by the National Key R&D Program (2016YFC0500909) and the National Natural Science Foundation of China(Nos. 41601587 and 41471436).