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An Evaluation of the Impact of Ecological Compensation on the Cross-Section Efficiency Using SFA and DEA: A Case Study of Xin’an River Basin

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  • Junran Dong

    (School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China)

  • Desheng Wu

    (School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China
    Stockholm Business School, Stockholm University, SE-106 91 Stockholm, Sweden)

Abstract

This paper aims to address the issue of evaluating watershed environmental efficiency with ecological compensation. One of the main objectives is the dynamic assessment of cross-section efficiency. The first transboundary watershed ecological compensation pilot of Xin’an river basin serves as the case study, and stochastic frontier analysis (SFA) is adopted as the main evaluation method. Furthermore, the efficiency is estimated by the data envelopment analysis (DEA) approach. The results validate that SFA can be used as an effective method on such issues by comparing it with the benchmark and the result of DEA, which proves the feasibility of our research methodology. The other purpose is to investigate the factors affecting environmental efficiency. This paper explores the relationship between environmental efficiency with 21 pollutant emission factors as well as the correlation between environmental efficiency and five macro factors of economic development, industrial structure, population density, degree of environmental protection, and natural environment. Finally, suggestions are provided for future improvement. This paper therefore presents a comprehensive reference analysis that contributes to facilitating balanced regional development and environmental conservation in the future.

Suggested Citation

  • Junran Dong & Desheng Wu, 2020. "An Evaluation of the Impact of Ecological Compensation on the Cross-Section Efficiency Using SFA and DEA: A Case Study of Xin’an River Basin," Sustainability, MDPI, vol. 12(19), pages 1-18, September.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:19:p:7966-:d:419807
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    Cited by:

    1. Jie Zhang & Yajing Wang & Jiangfeng Li, 2023. "Maximize Eco-Economic Benefits with Minimum Land Resources Input: Evaluation and Evolution of Land Use Eco-Efficiency of Agglomerations in Middle Reaches of Yangtze River, China," IJERPH, MDPI, vol. 20(3), pages 1-19, January.
    2. Shengnan Li & Baohang Hui & Cai Jin & Xuehan Liu & Fan Xu & Chong Su & Tan Li, 2022. "Considering Farmers’ Heterogeneity to Payment Ecosystem Services Participation: A Choice Experiment and Agent-Based Model Analysis in Xin’an River Basin, China," IJERPH, MDPI, vol. 19(12), pages 1-19, June.
    3. Jia He & Yi Li & Lianjun Zhang & Junyin Tan & Chuanhao Wen, 2021. "A County-Scale Spillover Ecological Value Compensation Standard of Ecological Barrier Area in China: Based on an Extended Emergy Analysis," Agriculture, MDPI, vol. 11(12), pages 1-26, November.
    4. Dongbin Hu & Mei Lin & Yang Chen, 2022. "Can Horizontal Ecological Compensation Improve the Water Environment in Cross-Provincial Watersheds?," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    5. Huang, Dayan & Liu, Chengyi & Yan, Zehao & Kou, Aiju, 2023. "Payments for Watershed Services and corporate green innovation," International Review of Economics & Finance, Elsevier, vol. 87(C), pages 541-556.
    6. Yang, Qiuyue & Yang, Zhen & Chen, Yumin, 2024. "The impact of trans-provincial watershed eco-compensation policy on carbon emissions: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 784-802.
    7. Lingyan Bao & Xuhui Ding & Jingxian Zhang & Dingyi Ma, 2023. "Can New Urbanization Construction Improve Ecological Welfare Performance in the Yangtze River Economic Belt?," Sustainability, MDPI, vol. 15(11), pages 1-18, May.

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