Abstract: Conflicts between economic development and environment are becoming increasingly sharp and have influenced different aspect in society and people′s life.This paper analyzes ecological compensation mechanism in the US and Germany，focusing on the reasons for their success and failure.And based on the analysis，the authors suggest that to implement ecological compensation in China，emphasis should first be put on the institution of relevant laws and regulations.Besides，environmental tax revenue system，cash security system and complementary action between government and market all make contribution to the implementation of ecological compensation system.

Key words: ecological compensation, environmental problems, environmental tax revenue, harmonized society, government and market