The Enhancement of the Horizontal Ecological Protection Compensation Mechanism in the Yu-Lu Section of the Yellow River Basin

Wenlu Shao, Guiliang Tian (), Anyi Zhang, Bo Qu and Ying Liu
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Wenlu Shao: College of Civil and Commercial Law, Henan University of Economics and Law, Zhengzhou 450046, China
Guiliang Tian: College of Business, Hohai University, Nanjing 210098, China
Anyi Zhang: College of Civil and Commercial Law, Henan University of Economics and Law, Zhengzhou 450046, China
Bo Qu: Yellow River Institute of Hydraulic Research, No. 45 Shunhe Road, Zhengzhou 450003, China
Ying Liu: College of Management and Economics, Tianjin University, Tianjin 300072, China

Sustainability, 2025, vol. 17, issue 3, 1-21

Abstract: Horizontal ecological compensation represents a significant institutional innovation aimed at advancing ecological civilization and serves as a key functional strategy within China’s current management framework. This paper employs the horizontal ecological protection compensation agreement of the Yu-Lu section of the Yellow River Basin as a case study. Using a game theory model and theoretical analysis, the paper explores the underlying connotations, theoretical foundations, and legal characteristics of the basin’s horizontal ecological protection compensation mechanism. This analysis reveals several challenges within the existing horizontal ecological protection compensation system in the Yellow River Basin, including the predominance of a single compensation entity, unclear compensation standards, a compensation model limited to monetary transfers, and the absence of an effective dispute resolution mechanism. This paper further examines potential improvements to the horizontal ecological protection compensation framework in the Yellow River Basin from a legal system perspective, with the aim of addressing these practical challenges and fostering the region’s ecological, environmental, and economic development.

Keywords: eco-compensation; Yellow River Basin; intergovernmental games; horizontal ecological compensation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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