Study On The Effect Of Pilot Ecological Compensation Sites In Xinan River Basin On Carbon Emission Reduction

As one of China’s significant policy tools to improve the environment,ecological compensation policies in river basins,emphasizing control and financial compensation,are playing an important role in regional green development.While integrated governance of mountains,waters,forests,farmland,lakes,grasslands,and deserts are winning increasing support,ecological compensation in river basins are also,step by step,exploring how to transform from simple improvement of the water environment to overall improvement of basin environment.Many scholars are currently researching whether basin compensation policies can effectively reduce carbon emissions and play a positive part in realizing both carbon peaking and carbon neutrality.This paper used economic and environmental data on 14 prefecture-level cities in Xinan River basin,China’s first inter-provincial ecological compensation pilot basin,to focus on the synergetic reduction of carbon and pollution in the basin based on a variety of theories including public goods theory,externality theory,property rights theory,synergistic effects theory,and environmental regulation theory.The effect of the policies on carbon emissions in the compensated areas was studied along two dimensions: total quantity and efficiency.Moreover,the mechanism of that effect was analyzed from three routes: adjustment of economic growth,optimization of industrial structure,and technological advancement.This study enriched research on ecological compensation in the Xinan River basin from the perspectives of diverse compensation approaches and synergistic effect to carbon emission and pollution reduction,completing related theories and guiding practices.It is summarized in detail below.Firstly,we theoretically analyze the evidence basis and feasibility of the use of ecological compensation in river basins to reduce carbon emissions.Based on the theoretical research and existing literature,we summarize the research history and frontiers,and connotations of terms like evidence-based ecological compensation in river basins and carbon productivity.Then,we elaborate upon the necessity of pilot ecological compensation project in river basins and the evidence basis of synergistic effects in reducing carbon emissions and pollution through pilot compensation based on a variety of theories including public goods theory,externality theory,property rights theory,synergistic effects theory,and environmental regulation theory.On this basis,we summarize the current achievements of pilot ecological compensation sites in river basins and explore the feasibility of using ecological compensation in Xinan River basin to reduce carbon emissions given the economies in the up-stream and down-stream areas,the status quo of ecological conservation and operation of ecological compensation pilot sites,as well as the status quo of carbon emissions and productivity.Second,we illustrate and analyze the effects of the pilot sites on carbon emissions.We use difference-in-difference(DID)analysis to understand to what extent the three rounds of pilot policies affected the total carbon emissions and carbon productivity of Huangshan city.we find that the ecological compensation policies in Xinan River basin significantly inhibited the total quantity of carbon emissions in Huangshan city by 8.9%.The direction of the spillover effects was the same as that of the policy effect,and diminished over distance,except that the carbon productivity in the compensated areas significantly increased after the implementation of the pilot policies by 21.1%.Third,we adopt stepwise regression to illustrate and discuss the influencing mechanisms in the compensated areas through economic growth,industrial structure,and technology level.We found that all three factors significantly improved following implementation of the pilot policies.Even after adding these three factors into the regression again based on the reference regression,the results still demonstrated that implementation of pilot policies greatly reduced total carbon emissions and increased carbon productivity.This result verifies the conclusion that there is a positive transmission mechanism between ecological compensation policies in river basins,transformation of industrial structure,technological advancement,and carbon emission reduction.Moreover,while reducing carbon emissions,the policy also did not inhibit growth.Finally,according to these results,we put forward three suggestions to improve ecological compensation mechanisms in river basins: furthering ecological compensation pilot projects,devising new approaches to implement them,and remaining alert to the risk of entry of neighboring polluting businesses.