IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v79y2022ics0301420722005268.html
   My bibliography  Save this article

Stakeholders′ ecological-economic compensation of river basin: A multi-stage dynamic game analysis

Author

Listed:
  • Li, Meng
  • Lu, Shibao
  • Li, Wei

Abstract

The growth of natural resources is an important consequence of green recovery and sustainable development measures. Protecting the ecological resources of the basin and implementing the ecological compensation system are important means to promote the sustainable development of the basin. This paper adopts the methods of static evolutionary game and dynamic evolutionary game to analyze the relevant decision-making behaviors among stakeholders of ecological compensation and the stability of dynamic evolutionary game between upstream and downstream governments and the entire game system. The results show that in the ecological compensation of the watershed, the optimal strategy of social expectations cannot be achieved only by the independent choice between the upstream and downstream governments (that is, the upstream government uses the "protection" strategy, and the downstream government uses the "compensation" strategy). Instead, through the intervention of the central government, a corresponding incentive and restraint mechanism should be established to regulate the behavior of upstream and downstream governments, so that the upstream government can choose the "protection" strategy, and the downstream government can choose the "compensation" strategy. Therefore, the ecological compensation of the river basin can maximize its benefits only if the upstream and downstream governments participate together. To adopt a socially optimal river basin ecological compensation strategy, the central government must intervene, adopt reward and punishment measures, and regulate the behavior of upstream and downstream governments. It is suggested that green strategies are urgently required to offset misuse of natural resources and urge stakeholders to play prominent role in addressing the problem.

Suggested Citation

  • Li, Meng & Lu, Shibao & Li, Wei, 2022. "Stakeholders′ ecological-economic compensation of river basin: A multi-stage dynamic game analysis," Resources Policy, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:jrpoli:v:79:y:2022:i:c:s0301420722005268
    DOI: 10.1016/j.resourpol.2022.103083
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420722005268
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2022.103083?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bomze Immanuel M. & Weibull Jorgen W., 1995. "Does Neutral Stability Imply Lyapunov Stability?," Games and Economic Behavior, Elsevier, vol. 11(2), pages 173-192, November.
    2. Gastineau, Pascal & Mossay, Pascal & Taugourdeau, Emmanuelle, 2021. "Ecological compensation: How much and where?," Ecological Economics, Elsevier, vol. 190(C).
    3. Weiwei Song & Xingqian Fu & Yong Pang & Dahao Song & Qing Xu & Peng Zhang, 2018. "Research on Water Environment Regulation of Artificial Playground Lake Interconnected Yangtze River," IJERPH, MDPI, vol. 15(10), pages 1-29, September.
    4. Daniel Friedman, 1998. "On economic applications of evolutionary game theory," Journal of Evolutionary Economics, Springer, vol. 8(1), pages 15-43.
    5. Ritzberger, Klaus & Weibull, Jorgen W, 1995. "Evolutionary Selection in Normal-Form Games," Econometrica, Econometric Society, vol. 63(6), pages 1371-1399, November.
    6. Jiang, Yanan & Guan, Dongjie & He, Xiujuan & Yin, Boling & Zhou, Lilei & Sun, Lingli & Huang, Danan & Li, Zihui & Zhang, Yanjun, 2022. "Quantification of the coupling relationship between ecological compensation and ecosystem services in the Yangtze River Economic Belt, China," Land Use Policy, Elsevier, vol. 114(C).
    7. Lu, Shibao & Zhang, Xiaoling & Peng, Huarong & Skitmore, Martin & Bai, Xiao & Zheng, Zhihong, 2021. "The energy-food-water nexus: Water footprint of Henan-Hubei-Hunan in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    8. Hamiche, Ait Mimoune & Stambouli, Amine Boudghene & Flazi, Samir, 2016. "A review of the water-energy nexus," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 319-331.
    9. Naoyuki Yoshino & Ehsan Rasoulinezhad & Farhad Taghizadeh-Hesary, 2021. "Economic Impacts of Carbon Tax in a General Equilibrium Framework: Empirical Study of Japan," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 23(01n02), pages 1-25, June.
    10. Christian Schmidt, 2004. "Are evolutionary games another way of thinking about game theory?," Journal of Evolutionary Economics, Springer, vol. 14(2), pages 249-262, June.
    11. Taghizadeh-Hesary, Farhad & Rasoulinezhad, Ehsan & Shahbaz, Muhammad & Vinh Vo, Xuan, 2021. "How energy transition and power consumption are related in Asian economies with different income levels?," Energy, Elsevier, vol. 237(C).
    12. Lu, Shibao & Lian, Zhiduan & Sun, Huaping & Wu, Xiaohe & Bai, Xiao & Wang, Congcong, 2021. "Simulating trans-boundary watershed water resources conflict," Resources Policy, Elsevier, vol. 73(C).
    13. Chang, Jianxia & Li, Yunyun & Yuan, Meng & Wang, Yimin, 2017. "Efficiency evaluation of hydropower station operation: A case study of Longyangxia station in the Yellow River, China," Energy, Elsevier, vol. 135(C), pages 23-31.
    14. Clot, Sophie & Grolleau, Gilles & Méral, Philippe, 2017. "Payment Vs. Compensation For Ecosystem Services: Do Words Have A Voice In The Design of Environmental Conservation Programs?," Ecological Economics, Elsevier, vol. 135(C), pages 299-303.
    15. Lu, Shibao & Bai, Xiao & Zhang, Jin & Li, Jinkai & Li, Wei & Lin, Ji, 2022. "Impact of virtual water export on water resource security associated with the energy and food bases in Northeast China," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    16. Sheng, Jichuan & Webber, Michael, 2017. "Incentive-compatible payments for watershed services along the Eastern Route of China’s South-North Water Transfer Project," Ecosystem Services, Elsevier, vol. 25(C), pages 213-226.
    17. Ehsan Rasoulinezhad, 2020. "Environmental Impact Assessment Analysis in the Kahak’s Wind Farm," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 22(01n02), pages 1-15, June.
    18. Xin Gao & Juqin Shen & Weijun He & Fuhua Sun & Zhaofang Zhang & Xin Zhang & Liang Yuan & Min An, 2019. "Multilevel Governments’ Decision-Making Process and Its Influencing Factors in Watershed Ecological Compensation," Sustainability, MDPI, vol. 11(7), pages 1-28, April.
    19. Shang, Yizi & Hei, Pengfei & Lu, Shibao & Shang, Ling & Li, Xiaofei & Wei, Yongping & Jia, Dongdong & Jiang, Dong & Ye, Yuntao & Gong, Jiaguo & Lei, Xiaohui & Hao, Mengmeng & Qiu, Yaqin & Liu, Jiahong, 2018. "China’s energy-water nexus: Assessing water conservation synergies of the total coal consumption cap strategy until 2050," Applied Energy, Elsevier, vol. 210(C), pages 643-660.
    20. Wang, Xuebin & Chang, Jianxia & Meng, Xuejiao & Wang, Yimin, 2018. "Short-term hydro-thermal-wind-photovoltaic complementary operation of interconnected power systems," Applied Energy, Elsevier, vol. 229(C), pages 945-962.
    21. Bull, Joseph William & Abatayo, Anna Lou & Strange, Niels, 2017. "Counterintuitive Proposals for Trans-boundary Ecological Compensation Under ‘No Net Loss’ Biodiversity Policy," Ecological Economics, Elsevier, vol. 142(C), pages 185-193.
    22. Lu, Shibao & Lu, Wenjing & Shao, Wei & Xue, Yangang & Taghizadeh-Hesary, Farhad, 2021. "The transboundary ecological compensation construction based on pollution rights: Ways to keep the natural resources sustained," Resources Policy, Elsevier, vol. 74(C).
    23. Xin Gao & Juqin Shen & Weijun He & Fuhua Sun & Zhaofang Zhang & Xin Zhang & Chengcai Zhang & Yang Kong & Min An & Liang Yuan & Xiaocang Xu, 2019. "Changes in Ecosystem Services Value and Establishment of Watershed Ecological Compensation Standards," IJERPH, MDPI, vol. 16(16), pages 1-30, August.
    24. Gao, Xuerui & Zhao, Yong & Lu, Shibao & Chen, Qianyun & An, Tingli & Han, Xinxueqi & Zhuo, La, 2019. "Impact of coal power production on sustainable water resources management in the coal-fired power energy bases of Northern China," Applied Energy, Elsevier, vol. 250(C), pages 821-833.
    25. Qi Ni & Minjuan Zhao & Chaoqiong Li & Yuxing Shi & Tao Xu & Imran Khan, 2021. "Multidimensional trust and its impact on the willingness to pay for ecological compensation in China’s transboundary watersheds—taking the largest tributary of the Yellow River as an example," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 64(12), pages 2257-2275, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li Ma & Danbo Pang & Jie Gao & Wenbin Wang & Ruoxiu Sun, 2023. "Ecological Asset Assessment and Ecological Compensation Standards for Desert Nature Reserves: Evidence from Three Different Climate Zones in China," Sustainability, MDPI, vol. 15(13), pages 1-17, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lu, Shibao & Bai, Xiao & Zhang, Jin & Li, Jinkai & Li, Wei & Lin, Ji, 2022. "Impact of virtual water export on water resource security associated with the energy and food bases in Northeast China," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    2. Xin Gao & Juqin Shen & Weijun He & Fuhua Sun & Zhaofang Zhang & Xin Zhang & Liang Yuan & Min An, 2019. "Multilevel Governments’ Decision-Making Process and Its Influencing Factors in Watershed Ecological Compensation," Sustainability, MDPI, vol. 11(7), pages 1-28, April.
    3. Zhao, Desen & Dou, Yao & Tong, Lu, 2022. "Effect of fiscal decentralization and dual environmental regulation on green poverty reduction: The case of China," Resources Policy, Elsevier, vol. 79(C).
    4. Wu, Xin & Bai, Xiao & Qi, Hanying & Lu, Lanxin & Yang, Mingyuan & Taghizadeh-Hesary, Farhad, 2023. "The impact of climate change on banking systemic risk," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 419-437.
    5. Lu, Shibao & Zhang, Xiaoling & Peng, Huarong & Skitmore, Martin & Bai, Xiao & Zheng, Zhihong, 2021. "The energy-food-water nexus: Water footprint of Henan-Hubei-Hunan in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    6. Hasan, Mohammad Maruf & Du, Fang, 2023. "The role of foreign trade and technology innovation on economic recovery in China: The mediating role of natural resources development," Resources Policy, Elsevier, vol. 80(C).
    7. Guo, Yuchen & Yuan, Yu, 2022. "Assessing the energy resources policy agenda: Evidence from China's green express policy," Resources Policy, Elsevier, vol. 79(C).
    8. Liang, Zhiying & Chen, Jian & Jiang, Dayang & Sun, Yunpeng, 2022. "Assessment of the spatial association network of green innovation: Role of energy resources in green recovery," Resources Policy, Elsevier, vol. 79(C).
    9. Cheng, Yue & Zhao, Gongyan & Meng, Wentao & Wang, Qianrong, 2024. "Resources utilization, taxation and green education: A path to sustainable power generation," Resources Policy, Elsevier, vol. 88(C).
    10. Xu, Chunguang & Li, Xiaohui, 2023. "The efficiency of natural resource consumption and government administration concerning green economic growth in Asian countries," Resources Policy, Elsevier, vol. 82(C).
    11. Telfah, Sadeq & Chau, Ka Yin & Tran, Trung Kien & Bui, Anh Tuan & Tai, Nguyen Tan & Phan, Thi Thu Hien, 2023. "Role of financial markets and natural resource utilization in green economic recovery: Evidence from selected developing economies," Resources Policy, Elsevier, vol. 83(C).
    12. Xue, Jibin & Lang, Jiahui & Guan, Yanjun & Lu, Shibao, 2023. "Design and measurement of small-scale regional ecological compensation model," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1392-1405.
    13. Lu, Shibao & Jiang, Yue & Deng, Weisheng & Meng, Xu, 2023. "Energy and food production security under water resources regulation in the context of green development," Resources Policy, Elsevier, vol. 80(C).
    14. Wang, Yunxian & Wang, Xin & Zhang, Zheng & Cui, Zhanmin & Zhang, Yuan, 2023. "Role of fiscal and monetary policies for economic recovery in China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 51-63.
    15. Yu, Chenyang & Moslehpour, Massoud & Tran, Trung Kien & Trung, Lam Minh & Ou, Jenho Peter & Tien, Nguyen Hoang, 2023. "Impact of non-renewable energy and natural resources on economic recovery: Empirical evidence from selected developing economies," Resources Policy, Elsevier, vol. 80(C).
    16. Xin, Fangkun & Qian, Yilei, 2022. "Does fiscal decentralization promote green utilization of land resources? Evidence from Chinese local governments," Resources Policy, Elsevier, vol. 79(C).
    17. Ma, Xuewen & Zhang, Dongming, 2023. "Digitalization of the economy for fossil fuels efficiency and carbon neutrality," Resources Policy, Elsevier, vol. 86(PA).
    18. Lin, Chao & Cai, Peipei, 2023. "Analyzing the impacts of natural resource utilization and green economic growth in China: Evidence from a econometric analysis," Resources Policy, Elsevier, vol. 81(C).
    19. Yubing Wang & Kai Zhu & Xiao Xiong & Jianuo Yin & Haoran Yan & Yuan Zhang & Hai Liu, 2022. "Assessment of the Ecological Compensation Standards for Cross-Basin Water Diversion Projects from the Perspective of Main Headwater and Receiver Areas," IJERPH, MDPI, vol. 20(1), pages 1-31, December.
    20. Liu, Jie & Pan, Zezhen & Sun, Ke & Chen, Yalan & Yang, Yan & Gao, Bo & Xing, Baoshan, 2022. "The preferential preservation of both different minerals and polyethylene microplastics on aromatic or aliphatic carbon fractions within low or high pyrolysis temperature biochar under mineralization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 170(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:79:y:2022:i:c:s0301420722005268. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.