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

Yu Lu, Fanbin Kong, Luchen Huang, Kai Xiong, Caiyao Xu and Ben Wang
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Yu Lu: College of Economics and Management, Zhejiang Agriculture & Forest University, Hangzhou 311300, China
Fanbin Kong: College of Economics and Management, Zhejiang Agriculture & Forest University, Hangzhou 311300, China
Luchen Huang: School of Economics, Jiangxi University of Finance and Economics, Nanchang 330013, China
Kai Xiong: Nanchang Institute of Technology, Nanchang 330099, China
Caiyao Xu: College of Economics and Management, Zhejiang Agriculture & Forest University, Hangzhou 311300, China
Ben Wang: Nanchang Institute of Technology, Nanchang 330099, China

Sustainability, 2021, vol. 13, issue 15, 1-14

Abstract: 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.

Keywords: difference-in-difference method; Poyang Lake River Basin; ecological compensation; effect of policy implementation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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