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Ecological compensation provides innovative ecological solutions for addressing land degradation and guaranteeing the sustainable provision of essential ecosystem services. This study estimated the ecosystem service value and the opportunity cost of land use in the Poverty Belt of China—around Beijing and Tianjin—from 1980 to 2015 on the small watershed scale, and thereafter estimated the rational range of ecological compensation in this ecologically fragile zone. Results showed that the total ecosystem service value in the study area gradually decreased from CNY 54.198 billion in 1980 to CNY 53.912 billion in 2015. Moreover, the annual total ecological compensation of the whole study area ranged between CNY 2.67 billion and 2.83 billion. More specifically, areas with higher ecological compensation standards are mainly concentrated in the northwestern and northern parts of the study area, with a lower economic development level, while areas with lower ecological compensation standards are mainly located in areas with a relatively high level of economic development, e.g., the southern and southeastern parts of the study area. These results can provide valuable decision-support information for the design and optimization of ecological compensation to address land degradation along with rapid urbanization in the Beijing–Tianjin–Hebei region.
