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

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  • 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
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    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. 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.

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