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Economic Effects of Ecological Compensation Policy in Shiyang River Basin: Empirical Research Based on DID and RDD Models

Author

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  • Haiyang Shang

    (School of Management, Northwest University of Political Science and Law, Xi’an 710122, China)

  • Jiaojiao Fan

    (School of Management, Northwest University of Political Science and Law, Xi’an 710122, China)

  • Bingjie Fan

    (School of Economics and Management, Shaanxi University of Science & Technology, Xi’an 710021, China)

  • Fang Su

    (School of Economics and Management, Shaanxi University of Science & Technology, Xi’an 710021, China)

Abstract

In order to achieve the sustainable development of ecological resources and social economy in the Shiyang River Basin, a series of Ecological Compensation policies have been implemented in the basin. This study takes these policies as an opportunity to design an experiment. The nine counties (districts) affected by these policies are used as the experimental samples, and the period from 2000 to 2019 is the experimental period. The difference-in-differences method is used to study the effect of the series of Ecological Compensation policies in the Shiyang River Basin on the economic development of the basin. Furthermore, the regression discontinuity design was used to estimate the time and mechanism of this effect. The research found that the early start of phase I of the Key Governance Planning Project in 2006 played a significant and continuous promotive role in the economic development of the river basin; the Water Resources Allocation and Regulation Plan significantly promoted the development of tertiary industry in 2005–2007; the Key Governance Planning significantly promoted the development of primary industry in 2007–2010. The results suggest that to optimize the industrial structure to the maximum extent in the future and promote the sustainable development of ecological resources and social economy in the Shiyang River Basin, economic changes, such as water-saving green agriculture and eco-tourism, should be developed.

Suggested Citation

  • Haiyang Shang & Jiaojiao Fan & Bingjie Fan & Fang Su, 2022. "Economic Effects of Ecological Compensation Policy in Shiyang River Basin: Empirical Research Based on DID and RDD Models," Sustainability, MDPI, vol. 14(5), pages 1-28, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:5:p:2999-:d:763995
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    References listed on IDEAS

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    Cited by:

    1. Kaiming Li & Min Wang & Wenbin Hou & Fuyuan Gao & Baicui Xu & Jianjun Zeng & Dongyu Jia & Jun Li, 2023. "Spatial Distribution and Driving Mechanisms of Rural Settlements in the Shiyang River Basin, Western China," Sustainability, MDPI, vol. 15(16), pages 1-22, August.
    2. 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.
    3. Yunhui Zhang & Zhong Wang & Shougeng Hu & Ziying Song & Xiaoguang Cui & Dennis Afriyie, 2022. "Spatial and Temporal Evolution and Prediction of the Coordination Level of “Production-Living-Ecological” Function Coupling in the Yellow River Basin, China," IJERPH, MDPI, vol. 19(21), pages 1-22, November.

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