IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i5p2999-d763995.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/5/2999/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/5/2999/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
    2. Andrew Gelman & Guido Imbens, 2019. "Why High-Order Polynomials Should Not Be Used in Regression Discontinuity Designs," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(3), pages 447-456, July.
    3. Moreno-Sanchez, Rocio & Maldonado, Jorge Higinio & Wunder, Sven & Borda-Almanza, Carlos, 2012. "Heterogeneous users and willingness to pay in an ongoing payment for watershed protection initiative in the Colombian Andes," Ecological Economics, Elsevier, vol. 75(C), pages 126-134.
    4. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    5. Guido Imbens & Karthik Kalyanaraman, 2012. "Optimal Bandwidth Choice for the Regression Discontinuity Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(3), pages 933-959.
    6. Cavalletti, B. & Di Fabio, C. & Lagomarsino, E. & Ramassa, P., 2020. "Ecosystem accounting for marine protected areas: A proposed framework," Ecological Economics, Elsevier, vol. 173(C).
    7. David S. Lee & Enrico Moretti & Matthew J. Butler, 2004. "Do Voters Affect or Elect Policies? Evidence from the U. S. House," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(3), pages 807-859.
    8. Justin McCrary, 2007. "Manipulation of the Running Variable in the Regression Discontinuity Design: A Density Test," NBER Technical Working Papers 0334, National Bureau of Economic Research, Inc.
    9. Fitalew Agimass Taye & Suzanne Elizabeth Vedel & Jette Bredahl Jacobsen, 2018. "Accounting for environmental attitude to explain variations in willingness to pay for forest ecosystem services using the new environmental paradigm," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 7(4), pages 420-440, October.
    10. Haiyang Shang & Ying Kou & Fang Su & Nini Song & Shuxin Mao, 2021. "The Policy Effect, Spatial Heterogeneity, and Spillover Effect of Land System Pilots," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    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. 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.

    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. Francisco Pino, 2014. "Is There Gender Bias Among Voters ?Evidence from the Chilean Congressional Elections," Working Papers ECARES ECARES 2014-53, ULB -- Universite Libre de Bruxelles.
    2. Prakash, Nishith & Rockmore, Marc & Uppal, Yogesh, 2019. "Do criminally accused politicians affect economic outcomes? Evidence from India," Journal of Development Economics, Elsevier, vol. 141(C).
    3. Ari Hyytinen & Jaakko Meriläinen & Tuukka Saarimaa & Otto Toivanen & Janne Tukiainen, 2018. "When does regression discontinuity design work? Evidence from random election outcomes," Quantitative Economics, Econometric Society, vol. 9(2), pages 1019-1051, July.
    4. Mauricio Villamizar‐Villegas & Freddy A. Pinzon‐Puerto & Maria Alejandra Ruiz‐Sanchez, 2022. "A comprehensive history of regression discontinuity designs: An empirical survey of the last 60 years," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1130-1178, September.
    5. Daniel Mejía & Pascual Restrepo & Sandra V. Rozo, 2017. "On the Effects of Enforcement on Illegal Markets: Evidence from a Quasi-Experiment in Colombia," The World Bank Economic Review, World Bank, vol. 31(2), pages 570-594.
    6. Marco Alberto De Benedetto & Maria De Paola, 2017. "Candidates’ Education and Turnout: Evidence from Italian Municipal Elections," German Economic Review, Verein für Socialpolitik, vol. 18(1), pages 22-50, February.
    7. Dong, Yingying, 2010. "Jumpy or Kinky? Regression Discontinuity without the Discontinuity," MPRA Paper 25461, University Library of Munich, Germany.
    8. Shaun M. Dougherty, 2018. "The Effect of Career and Technical Education on Human Capital Accumulation: Causal Evidence from Massachusetts," Education Finance and Policy, MIT Press, vol. 13(2), pages 119-148, Spring.
    9. Thushyanthan Baskaran & Sonia Bhalotra & Brian Min & Yogesh Uppal, 2018. "Women legislators and economic performance," WIDER Working Paper Series wp-2018-47, World Institute for Development Economic Research (UNU-WIDER).
    10. Sun, Ang & Zhao, Yaohui, 2016. "Divorce, abortion, and the child sex ratio: The impact of divorce reform in China," Journal of Development Economics, Elsevier, vol. 120(C), pages 53-69.
    11. Koichiro Ito & Shuang Zhang, 2020. "Willingness to Pay for Clean Air: Evidence from Air Purifier Markets in China," Journal of Political Economy, University of Chicago Press, vol. 128(5), pages 1627-1672.
    12. Adam C. Sales & Ben B. Hansen, 2020. "Limitless Regression Discontinuity," Journal of Educational and Behavioral Statistics, , vol. 45(2), pages 143-174, April.
    13. Christelis, Dimitris & Georgarakos, Dimitris & Sanz-de-Galdeano, Anna, 2020. "The impact of health insurance on stockholding: A regression discontinuity approach," Journal of Health Economics, Elsevier, vol. 69(C).
    14. Kaisa Kotakorpi & Panu Poutvaara & Marko Tervio, 2013. "Returns to office in national and local politics," Discussion Papers 86, Aboa Centre for Economics.
    15. Zhao, Meng & Konishi, Yoshifumi & Glewwe, Paul, 2013. "Does information on health status lead to a healthier lifestyle? Evidence from China on the effect of hypertension diagnosis on food consumption," Journal of Health Economics, Elsevier, vol. 32(2), pages 367-385.
    16. Gutierrez, Emilio, 2015. "Fighting Crime with a Little Help from my Friends: Political Alignment, Inter-Jurisdictional Cooperation and Crime in Mexico," CEPR Discussion Papers 10769, C.E.P.R. Discussion Papers.
    17. Christina Korting & Carl Lieberman & Jordan Matsudaira & Zhuan Pei & Yi Shen, 2023. "Visual Inference and Graphical Representation in Regression Discontinuity Designs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 138(3), pages 1977-2019.
    18. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    19. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    20. Jung Sakong, 2021. "Identifying Taste-Based Discrimination: Effect of Black Electoral Victories on Racial Prejudice and Economic Gaps," Working Paper Series WP-2021-07, Federal Reserve Bank of Chicago.

    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:gam:jsusta:v:14:y:2022:i:5:p:2999-:d:763995. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.