IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v12y2023i9p1698-d1228748.html
   My bibliography  Save this article

System Dynamics-Based Game Theoretical Analysis for Watershed Eco-Compensation Design: A Case Study in Tuojiang River, Sichuan Province, China

Author

Listed:
  • Xuefeng Min

    (Faculty of Geosciences and Environmental Engineering, Southwest Jiaotong University, Chengdu 611756, China)

  • Yang Yu

    (Faculty of Geosciences and Environmental Engineering, Southwest Jiaotong University, Chengdu 611756, China)

  • Rui Zhao

    (Faculty of Geosciences and Environmental Engineering, Southwest Jiaotong University, Chengdu 611756, China)

  • Xin Xiong

    (Faculty of Geosciences and Environmental Engineering, Southwest Jiaotong University, Chengdu 611756, China)

  • Sen Du

    (Faculty of Geosciences and Environmental Engineering, Southwest Jiaotong University, Chengdu 611756, China)

  • Qin Mou

    (Faculty of Geosciences and Environmental Engineering, Southwest Jiaotong University, Chengdu 611756, China)

  • Wenjie Xu

    (Faculty of Geosciences and Environmental Engineering, Southwest Jiaotong University, Chengdu 611756, China)

Abstract

Eco-compensation is an important policy tool to trade off economic development and environmental protection in a watershed. This study introduced the gross ecosystem product (GEP) accounting system to identify the eco-compensation provider (ECP) and eco-compensation receiver (ECR) of a river basin. Then, a cooperative game model and a non-cooperative game model between the ECP and the ECR were established, in which system dynamics was incorporated into the game theoretical analysis to aid selection of the optimal compensation scheme. The study further demonstrated the model applications by taking the Tuojiang River Basin as a case. The results showed that the accounted GEP increased from CNY 32.2 billion in 2018 to CNY 35.5 billion in 2020, with a growth rate of 10.2%. Deyang City, as an ECP, had a cumulative difference of CNY 11.759 billion between its accounted GEP and actual GEP output over the three years. Neijiang City, Zigong City, and Luzhou City were taken as the ECR, receiving the GEP revenues as CNY 11.289 billion, 7.661 billion, and 1.497 billion, respectively. Chengdu City changed from the ECP to the ECR and ultimately to the ECP. However, Ziyang City and Meishan City changed from the ECP to the ECR. The eco-compensations increased to varying degrees during 2018–2020 in both game scenarios, with ECP payments and ECR revenues increasing by 16.5% and 4.6% in the non-cooperative game and by 5.0% and 50.8% in the cooperative game. Particularly, the eco-compensation obtained by the cooperative game had better environmental and economic performance, as there was a total of CNY 7.049 billion being saved. However, there was no savings of compensation by the non-cooperative game. It is expected that the results may provide insight into the design of the eco-compensation standard for a river basin.

Suggested Citation

  • Xuefeng Min & Yang Yu & Rui Zhao & Xin Xiong & Sen Du & Qin Mou & Wenjie Xu, 2023. "System Dynamics-Based Game Theoretical Analysis for Watershed Eco-Compensation Design: A Case Study in Tuojiang River, Sichuan Province, China," Land, MDPI, vol. 12(9), pages 1-16, August.
    • Handle: RePEc:gam:jlands:v:12:y:2023:i:9:p:1698-:d:1228748
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/12/9/1698/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-445X/12/9/1698/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yuheng Yang & Xi Zhang & Leran Chang & Yufei Cheng & Shengle Cao, 2018. "A Method of Evaluating Ecological Compensation Under Different Property Rights and Stages: A Case Study of the Xiaoqing River Basin, China," Sustainability, MDPI, vol. 10(3), pages 1-14, February.
    2. Jiawei Li & Tianxiang Cui & Graham Kendall, 2022. "Equilibrium in a Bargaining Game of Two Sellers and Two Buyers," Mathematics, MDPI, vol. 10(15), pages 1-9, July.
    3. Qingping Hu & Chunyan Lu & Tingting Chen & Wanting Chen & Huimei Yuan & Mengxing Zhou & Zijing Qiu & Lingxin Bao, 2023. "Evaluation and Analysis of the Gross Ecosystem Product towards the Sustainable Development Goals: A Case Study of Fujian Province, China," Sustainability, MDPI, vol. 15(5), pages 1-14, February.
    4. Hongwei Deng & Jinxin Yang & Peng Wang, 2023. "Study on Coupling Coordination Relationship between Urban Development Intensity and Water Environment Carrying Capacity of Chengdu–Chongqing Economic Circle," Sustainability, MDPI, vol. 15(9), pages 1-18, April.
    5. Jianan Qin & Xiang Fu & Shaoming Peng & Yuni Xu & Jie Huang & Sha Huang, 2019. "Asymmetric Bargaining Model for Water Resource Allocation over Transboundary Rivers," IJERPH, MDPI, vol. 16(10), pages 1-23, May.
    6. Na Zhao & Hui Wang & Jingqiu Zhong & Yun Bai & Sang Yi, 2022. "Evaluation of the Gross Ecosystem Product and Analysis of the Transformation Path of “Two Mountains” in Hulunbuir City, China," Land, MDPI, vol. 12(1), pages 1-20, December.
    7. Hongjie Cao & Meina Li & Fengqin Qin & Yankun Xu & Li Zhang & Zhifeng Zhang, 2022. "Economic Development, Fiscal Ecological Compensation, and Ecological Environment Quality," IJERPH, MDPI, vol. 19(8), pages 1-19, April.
    8. Chen, Yang & Park, Byungkwon & Kou, Xiao & Hu, Mengqi & Dong, Jin & Li, Fangxing & Amasyali, Kadir & Olama, Mohammed, 2020. "A comparison study on trading behavior and profit distribution in local energy transaction games," Applied Energy, Elsevier, vol. 280(C).
    Full references (including those not matched with items on IDEAS)

    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. Zeng, Lijun & Du, Wenjing & Zhang, Wencheng & Zhao, Laijun & Wang, Zhaohua, 2023. "An inter-provincial cooperation model under Renewable Portfolio Standard policy," Energy, Elsevier, vol. 269(C).
    2. Jia He & Yu Wan & Zhonglin Tang & Xiaodong Zhu & Chuanhao Wen, 2019. "A Developed Framework for the Multi-District Ecological Compensation Standards Integrating Ecosystem Service Zoning in an Urban Area in China," Sustainability, MDPI, vol. 11(18), pages 1-24, September.
    3. Zhang, Junxia & Li, Xingmei & Jia, Dongqing & Zhou, Yuexin, 2023. "A Bi-level programming for union battery swapping stations location-routing problem under joint distribution and cost allocation," Energy, Elsevier, vol. 272(C).
    4. Cui, Shiting & Wu, Jun & Gao, Yao & Zhu, Ruijin, 2023. "A high altitude prosumer energy cooperation framework considering composite energy storage sharing and electric‑oxygen‑hydrogen flexible supply," Applied Energy, Elsevier, vol. 349(C).
    5. Bochun Zhan & Changsen Feng & Zhemin Lin & Xiaoyu Shao & Fushuan Wen, 2023. "Peer-to-Peer Energy Trading among Prosumers with Voltage Regulation Services Provision," Energies, MDPI, vol. 16(14), pages 1-22, July.
    6. Ju, Liwei & Yin, Zhe & Zhou, Qingqing & Li, Qiaochu & Wang, Peng & Tian, Wenxu & Li, Peng & Tan, Zhongfu, 2022. "Nearly-zero carbon optimal operation model and benefit allocation strategy for a novel virtual power plant using carbon capture, power-to-gas, and waste incineration power in rural areas," Applied Energy, Elsevier, vol. 310(C).
    7. Quanxi Wang & Ni Wang & Haodong Wang & Yuan Xiu, 2022. "Study on Influencing Factors and Simulation of Watershed Ecological Compensation Based on Evolutionary Game," Sustainability, MDPI, vol. 14(6), pages 1-23, March.
    8. Emilia Miszewska & Maciej Niedostatkiewicz & Radosław Wiśniewski, 2023. "Sustainable Development of Water Housing Using the Example of Poland: An Analysis of Scenarios," Sustainability, MDPI, vol. 15(14), pages 1-16, July.
    9. Dynge, Marthe Fogstad & Berg, Kjersti & Bjarghov, Sigurd & Cali, Ümit, 2023. "Local electricity market pricing mechanisms’ impact on welfare distribution, privacy and transparency," Applied Energy, Elsevier, vol. 341(C).
    10. Mohseni, Shayan & Pishvaee, Mir Saman, 2023. "Energy trading and scheduling in networked microgrids using fuzzy bargaining game theory and distributionally robust optimization," Applied Energy, Elsevier, vol. 350(C).
    11. Yonghua Li & Huarong Wang & Chunju Liu & Jianhua Sun & Qinchuan Ran, 2024. "Optimizing the Valuation and Implementation Path of the Gross Ecosystem Product: A Case Study of Tonglu County, Hangzhou City," Sustainability, MDPI, vol. 16(4), pages 1-24, February.
    12. Sebastian Cano-Berlanga & María-José Solís-Baltodano & Cori Vilella, 2023. "The Art of Sharing Resources: How to Distribute Water during a Drought Period," Games, MDPI, vol. 14(5), pages 1-16, August.
    13. Jinglve Wang & Hongping Yuan, 2023. "Deciphering the Innovation Subsidy Puzzle: Government Choices amid Supply Chain Encroachment," Mathematics, MDPI, vol. 11(23), pages 1-38, November.
    14. Wang, Ni & Liu, Ziyi & Heijnen, Petra & Warnier, Martijn, 2022. "A peer-to-peer market mechanism incorporating multi-energy coupling and cooperative behaviors," Applied Energy, Elsevier, vol. 311(C).
    15. 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.
    16. Adrian Marius Deaconu & Daniel Tudor Cotfas & Petru Adrian Cotfas, 2023. "Advanced Optimization Methods and Applications," Mathematics, MDPI, vol. 11(9), pages 1-7, May.
    17. Xue, Jibin & Lang, Jiahui & Guan, Yanjun & Lu, Shibao, 2023. "Design and measurement of small-scale regional ecological compensation model," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1392-1405.
    18. Nie, Qingyun & Zhang, Lihui & Li, Songrui, 2022. "How can personal carbon trading be applied in electric vehicle subsidies? A Stackelberg game method in private vehicles," Applied Energy, Elsevier, vol. 313(C).
    19. Cailian Hao & Denghua Yan & Mohammed Gedefaw & Tianling Qin & Hao Wang & Zhilei Yu, 2021. "Accounting of Transboundary Ecocompensation Standards Based on Water Quantity Allocation and Water Quality Control Targets," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(6), pages 1731-1756, April.
    20. Yang, Peiwen & Fang, Debin & Wang, Shuyi, 2022. "Optimal trading mechanism for prosumer-centric local energy markets considering deviation assessment," Applied Energy, Elsevier, vol. 325(C).

    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:jlands:v:12:y:2023:i:9:p:1698-:d:1228748. 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.