China’s PES-like horizontal eco-compensation program: Combining market-oriented mechanisms and government interventions

Sheng, Jichuan; Qiu, Wenge

doi:10.1016/j.ecoser.2020.101164

Cited by 48 publications

(30 citation statements)

References 49 publications

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“…Improving the quality of the ecological environment in river basins has always been an important issue for academia and governments around the world [15]. Among the various environmental protection measures, the construction of a watershed ecological compensation mechanism is considered an important measure towards improving basin environments [16]. The payment for cross-boundary ecosystem services is mainly based on the compensation between upstream and downstream or between regions in a marketoriented way [17].…”

Section: Literature Reviewmentioning

confidence: 99%

Evaluation of the Implementation Effect of the Ecological Compensation Policy in the Poyang Lake River Basin Based on Difference-in-Difference Method

et al. 2021

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Watershed environments play an important supporting role in sustainable high-quality economic development in China, but they have been deteriorating. In order to solve environmental problems in the Poyang Lake River Basin brought about by economic development, the Jiangxi Provincial Government promulgated relevant river basin protection policies in 2015. However, after several years of this policy, the specific effects of its implementation are a matter of general concern to the government and academic circles. After years of policy implementation, the implementation effect of the watershed ecological compensation policy needs to be evaluated. Based on 4248 observations from the Jiangxi and Hunan Provinces, we adopt the difference-in-difference method to analyze the impact of the ecological compensation policy on the Poyang Lake River Basin. The empirical results show that the ecological compensation policy has a significant effect on water-quality improvement. Water quality in the upstream area is better than that in the downstream area; areas with small administrative areas have a smaller population, which in turn leads to better water quality in the river basin; and the higher the per capita GDP, the worse the water quality. Our results highlight the need for the following policy improvements: ecological priority, customizing measures to local conditions, tracing the main body, and strengthening supervision.

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Section: Literature Reviewmentioning

confidence: 99%

Evaluation of the Implementation Effect of the Ecological Compensation Policy in the Poyang Lake River Basin Based on Difference-in-Difference Method

et al. 2021

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“…From the perspective of market entities, government intervention may restrict the enthusiasm and initiative of relevant market entities to make the necessary efforts to improve food safety. On the one hand, government intervention highlights the functions of the government, but hinders the role of the market in resource allocation [ 49 ]. Corruption and inefficiency are inevitable when a multilevel government intervenes, which may restrict the market-oriented development of food safety supervision.…”

Section: Discussionmentioning

confidence: 99%

Does Government Intervention Ensure Food Safety? Evidence from China

Zhang

Sun

Huang

et al. 2021

IJERPH

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Food safety is related to public health, social welfare, and human survival, all of which are important and pressing areas of concern all over the world. The government plays an increasingly important role in the supervision of food safety. The role of the government, however, is also controversial. Using provincial panel data of China from 2005 to 2015, the present study intends to shed light on the associations between government intervention and food safety performance under two scenarios of local government—competition and noncompetition. This will be accomplished through an exploratory spatial data analysis and a spatial econometric model. The results reveal negative associations between food safety performance and government intervention without considering local government competition. As was also observed, government intervention not only inhibits the improvement of food safety in the region, but also has a negative spatial spillover effect on food safety in neighboring provinces. This is the result after considering government competition, thus, showing the competitive strategic interaction of the “race to the bottom”. Further analysis reveals that, if geographically similar regions are selected as reference objects, the food safety performance of each province will have a stronger tendency to compete for the better. If regions with similar economic development levels are selected as reference objects, food safety performance will have a stronger tendency to compete for the worse. This work provides new evidence for the relationships between government intervention and food safety, and, also, proposes some insightful implications for policymakers for governing food safety.

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“…The beneficiaries should compensate the protectors, enterprises, and individuals because of their contribution to protecting the environment. Therefore, the NGOs or other entities play a vital role in those buyers of watershed services rather than the central government [67][68][69].…”

Section: Multi-stakeholder Engagement In Wecmentioning

confidence: 99%

“…The market rules in the government documents collected above may have already been applied in existing pilot eco-compensation schemes. There is an example of cross-administrative-boundary WEC between Anhui and the Zhejiang [58,68], Henan, and Shandong provinces of China. Clearly defining the rights and responsibilities of environmental or ecological administrative entities in neighboring waters is an essential precondition for effectively carrying out cross-administrative-boundary WEPC.…”

Section: Improving Laws and Regulations On Market-oriented Wecmentioning

confidence: 99%

Watershed Eco-Compensation Mechanism in China: Policies, Practices and Recommendations

Cheng

Lan

et al. 2022

Water

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Watershed eco-compensation (WEC) is considered a significant environmental policy instrument for watershed ecological protection and management. However, in the legislation and practice of eco-compensation in China, the development of the WEC mechanism is still in the initial stages. In this paper, the institutional opportunities and challenges of WEC are analyzed from the existing policies, laws, and economical instruments. Theoretically, WEC in China has seen a combination of punitive-based “Watershed Ecological Damage Compensation (WEDC)” and incentive-based “Watershed Ecological Protective Compensation (WEPC)”. Through a comparative analysis of domestic and foreign watershed compensation practices, the results demonstrate that most of China’s WEC projects have an insufficient legal basis, a single compensatory subject, insufficient compensation funds, and an imperfect market-oriented compensation mechanism. To improve watershed eco-compensation in China, it is recommended to strengthen legislation, select diversified eco-compensation approaches, and establish a market-based and systematic eco-compensation mechanism for watersheds.

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China’s PES-like horizontal eco-compensation program: Combining market-oriented mechanisms and government interventions

Cited by 48 publications

References 49 publications

Evaluation of the Implementation Effect of the Ecological Compensation Policy in the Poyang Lake River Basin Based on Difference-in-Difference Method

Evaluation of the Implementation Effect of the Ecological Compensation Policy in the Poyang Lake River Basin Based on Difference-in-Difference Method

Does Government Intervention Ensure Food Safety? Evidence from China

Watershed Eco-Compensation Mechanism in China: Policies, Practices and Recommendations

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