Horizontal ecological compensation mechanism and technological progress: theory and empirical study of Xin’an River Ecological Compensation Gambling Agreement

Haisen Wang, Gangqiang Yang, Xiao Ouyang, Ziyi Tand, Xiaofeng Long and Ziyang Yue

Journal of Environmental Planning and Management, 2023, vol. 66, issue 3, 501-523

Abstract: The Xin’an River ecological compensation mechanism is China’s first horizontal compensation mechanism to improve the ecological environment of the downstream areas and increase the fiscal revenues of the upstream areas. Although the amount invested in the program is increasing every year, few studies have been conducted to evaluate the impact of the program. Based on the Levinsohn–Petrin method and a comprehensive dataset of Chinese industrial companies from 2009 to 2015, we employed the k-nearest neighbor propensity score matching–difference-in-difference (PSM-DID) to explore the impact of the Xin’an River Ecological Compensation Gambling Agreement (ECGA) on company technological progress and its drive mechanism. The empirical results show that ECGA inhibits the technological progress of upstream industrial companies and has more pronounced inhibitory effects for heavy-polluting companies. ECGA indirectly inhibits the technological progress in upstream companies by affecting profitability, scale, human capital, foreign direct investment, and management efficiency.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/09640568.2021.1990030 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jenpmg:v:66:y:2023:i:3:p:501-523

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CJEP20

DOI: 10.1080/09640568.2021.1990030

Access Statistics for this article

Journal of Environmental Planning and Management is currently edited by Dr Neil Powe, Dr Ken Willis and George Bill Page

More articles in Journal of Environmental Planning and Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().