IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v42y2021i6p1579-1590.html
   My bibliography  Save this article

Analysis of multiple ecological compensation strategies for transboundary pollution control in a river basin

Author

Listed:
  • Yongxi Yi
  • Min Yang
  • Chunyan Fu

Abstract

Considering a basin composed of multiple upstream and downstream regions with the pollution occurring across regional boundaries, a Stackelberg game model is developed to investigate the multiple ecological compensation strategies for transboundary pollution control. The results show that (1) under the equilibrium strategy of ecological compensation all regions obtain a Pareto improvement result. (2) Ecological compensation results in an increase in total abatement investment. In particular, a very interesting result is that (3) rising abatement costs in a region compensate more for its upstream regions, whereas its downstream regions do not compensate more for it.

Suggested Citation

  • Yongxi Yi & Min Yang & Chunyan Fu, 2021. "Analysis of multiple ecological compensation strategies for transboundary pollution control in a river basin," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(6), pages 1579-1590, September.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:6:p:1579-1590
    DOI: 10.1002/mde.3328
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3328
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.3328?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
    ---><---

    References listed on IDEAS

    as
    1. Muradian, Roldan & Corbera, Esteve & Pascual, Unai & Kosoy, Nicolás & May, Peter H., 2010. "Reconciling theory and practice: An alternative conceptual framework for understanding payments for environmental services," Ecological Economics, Elsevier, vol. 69(6), pages 1202-1208, April.
    2. Boucekkine, Raouf & Fabbri, Giorgio & Federico, Salvatore & Gozzi, Fausto, 2021. "From firm to global-level pollution control: The case of transboundary pollution," European Journal of Operational Research, Elsevier, vol. 290(1), pages 331-345.
    3. Boucekkine, Raouf & Fabbri, Giorgio & Federico, Salvatore & Gozzi, Fausto, 2021. "From firm to global-level pollution control: The case of transboundary pollution," European Journal of Operational Research, Elsevier, vol. 290(1), pages 331-345.
    4. Frederick Ploeg & Aart Zeeuw, 1992. "International aspects of pollution control," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(2), pages 117-139, March.
    5. Dockner Engelbert J. & Van Long Ngo, 1993. "International Pollution Control: Cooperative versus Noncooperative Strategies," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 13-29, July.
    6. Breton, Michele & Sokri, Abderrahmane & Zaccour, Georges, 2008. "Incentive equilibrium in an overlapping-generations environmental game," European Journal of Operational Research, Elsevier, vol. 185(2), pages 687-699, March.
    7. Turken, Nazli & Carrillo, Janice & Verter, Vedat, 2020. "Strategic supply chain decisions under environmental regulations: When to invest in end-of-pipe and green technology," European Journal of Operational Research, Elsevier, vol. 283(2), pages 601-613.
    8. D. W. K. Yeung, 2007. "Dynamically Consistent Cooperative Solution in a Differential Game of Transboundary Industrial Pollution," Journal of Optimization Theory and Applications, Springer, vol. 134(1), pages 143-160, July.
    9. Carraro, Carlo & Siniscalco, Domenico, 1993. "Strategies for the international protection of the environment," Journal of Public Economics, Elsevier, vol. 52(3), pages 309-328, October.
    10. Cranford, Matthew & Mourato, Susana, 2011. "Community conservation and a two-stage approach to payments for ecosystem services," Ecological Economics, Elsevier, vol. 71(C), pages 89-98.
    11. Kemkes, Robin J. & Farley, Joshua & Koliba, Christopher J., 2010. "Determining when payments are an effective policy approach to ecosystem service provision," Ecological Economics, Elsevier, vol. 69(11), pages 2069-2074, September.
    12. Jorgensen, Steffen & Zaccour, Georges, 2001. "Time consistent side payments in a dynamic game of downstream pollution," Journal of Economic Dynamics and Control, Elsevier, vol. 25(12), pages 1973-1987, December.
    13. List, John A. & Mason, Charles F., 2001. "Optimal Institutional Arrangements for Transboundary Pollutants in a Second-Best World: Evidence from a Differential Game with Asymmetric Players," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 277-296, November.
    14. Martín-Herrán, Guiomar & Rubio, Santiago J., 2018. "Second-best taxation for a polluting monopoly with abatement investment," Energy Economics, Elsevier, vol. 73(C), pages 178-193.
    15. van der Ploeg, F. & de Zeeuw, A.J., 1992. "International aspects of pollution control," Other publications TiSEM 5d08aa40-9b59-4bac-811a-b, Tilburg University, School of Economics and Management.
    16. Yongxi Yi & Zhongjun Wei & Chunyan Fu, 2020. "A Differential Game of Transboundary Pollution Control and Ecological Compensation in a River Basin," Complexity, Hindawi, vol. 2020, pages 1-13, February.
    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. Fangju Jia & Dong‐dong Wang & Kun Zhou & Lianshui Li, 2022. "Differential decision analysis of transboundary pollution considering the participation of the central government," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1684-1703, September.
    2. Jiang, Ke & Zhang, Jiaming & Zhang, Leilei & Wang, Die & Wang, Yusheng, 2023. "Sustainable cooperation in the watershed ecological compensation public-private partnership project: Lessons from China's Chishui river basin," Socio-Economic Planning Sciences, Elsevier, vol. 90(C).
    3. Ziyong Su & Zhanqi Wang & Liguo Zhang, 2022. "Spatial-Temporal Characteristics of Ecosystem Service Values of Watershed and Ecological Compensation Scheme Considering Its Realization in Spatial Planning," Sustainability, MDPI, vol. 14(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. Hassan Benchekroun & Amrita Ray Chaudhuri, 2015. "Cleaner Technologies and the Stability of International Environmental Agreements," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(6), pages 887-915, December.
    2. Benchekroun, H. & Ray Chaudhuri, A., 2012. "Cleaner Technologies and the Stability of International Environmental Agreements," Other publications TiSEM 5ef53bd9-23c2-400a-b14a-f, Tilburg University, School of Economics and Management.
    3. Benchekroun, H. & Ray Chaudhuri, A., 2012. "Cleaner Technologies and the Stability of International Environmental Agreements," Other publications TiSEM 0cbd69ff-87b0-47c0-bbb9-f, Tilburg University, School of Economics and Management.
    4. Benchekroun, H. & Ray Chaudhuri, A., 2010. "'The Voracity Effect' and Climate Change : The Impact of Clean Technologies," Other publications TiSEM 3c4910ac-a5dd-4130-9912-f, Tilburg University, School of Economics and Management.
    5. Javier Frutos & Guiomar Martín-Herrán, 2015. "Does Flexibility Facilitate Sustainability of Cooperation Over Time? A Case Study from Environmental Economics," Journal of Optimization Theory and Applications, Springer, vol. 165(2), pages 657-677, May.
    6. Benchekroun, H. & Ray Chaudhuri, A., 2010. "'The Voracity Effect' and Climate Change : The Impact of Clean Technologies," Discussion Paper 2010-97, Tilburg University, Center for Economic Research.
    7. Benchekroun, Hassan & Ray Chaudhuri, Amrita, 2014. "Transboundary pollution and clean technologies," Resource and Energy Economics, Elsevier, vol. 36(2), pages 601-619.
    8. Li, Huiquan & Guo, Genlong, 2019. "A differential game analysis of multipollutant transboundary pollution in river basin," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 535(C).
    9. Shoude Li, 2014. "A Differential Game of Transboundary Industrial Pollution with Emission Permits Trading," Journal of Optimization Theory and Applications, Springer, vol. 163(2), pages 642-659, November.
    10. Smala Fanokoa, Pascaux & Telahigue, Issam & Zaccour, Georges, 2011. "Buying cooperation in an asymmetric environmental differential game," Journal of Economic Dynamics and Control, Elsevier, vol. 35(6), pages 935-946, June.
    11. Wenguang Tang & Shuhua Zhang, 2019. "Modeling and Computation of Transboundary Pollution Game Based on Joint Implementation Mechanism," Complexity, Hindawi, vol. 2019, pages 1-18, August.
    12. Javier Frutos & Víctor Gatón & Paula M. López-Pérez & Guiomar Martín-Herrán, 2022. "Investment in Cleaner Technologies in a Transboundary Pollution Dynamic Game: A Numerical Investigation," Dynamic Games and Applications, Springer, vol. 12(3), pages 813-843, September.
    13. Santiago J. Rubio, 2002. "On The Coincidence Of The Feedback Nash And Stackelberg Equilibria In Economic Applications Of Differential Games," Working Papers. Serie AD 2002-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    14. Luisito Bertinelli & Amer Tabakovic & Luca Marchiori & Benteng Zou, 2015. "Transboundary Pollution Abatement: The Impact of Unilateral Commitment in Differential Games," DEM Discussion Paper Series 15-02, Department of Economics at the University of Luxembourg.
    15. Louis-Gaëtan Giraudet & Céline Guivarch, 2016. "Global warming as an asymmetric public bad," Working Papers 2016.26, FAERE - French Association of Environmental and Resource Economists.
    16. Boucekkine, Raouf & Ruan, Weihua & Zou, Benteng, 2023. "The irreversible pollution game," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    17. Sudhir A. Shah, 2010. "A Noncooperative Quantity‐Rationing Theory of Transboundary Pollution," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(3), pages 437-470, June.
    18. Sudhir A. Shah, 2006. "A Non-Cooperative Theory Of Quantity-Rationing International Transfrontier Pollution," Working papers 143, Centre for Development Economics, Delhi School of Economics.
    19. Santiago J. Rubio, 2001. "International Cooperation In Pollution Control," Working Papers. Serie AD 2001-21, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    20. Ryle S. Perera & Kimitoshi Sato, 2023. "Ensuring Mutual Benefit in a Trans-boundary Industrial Pollution Control Problem," Computational Economics, Springer;Society for Computational Economics, vol. 62(1), pages 91-128, June.

    More about this item

    Statistics

    Access and download statistics

    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:wly:mgtdec:v:42:y:2021:i:6:p:1579-1590. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.