IDEAS home Printed from https://ideas.repec.org/a/spr/waterr/v39y2025i10d10.1007_s11269-025-04181-y.html
   My bibliography  Save this article

Transboundary River Basin Eco-Compensation with Reward-Punishment Mechanisms: a Differential Game Perspective

Author

Listed:
  • Zuliang Lu

    (Chongqing Three Gorges University
    Tianjin University of Finance and Economics)

  • Mingsong Li

    (Chongqing Three Gorges University)

  • Lu Xing

    (Chongqing Three Gorges University)

  • Junman Li

    (Chongqing Three Gorges University)

Abstract

The transboundary river basin eco-compensation mechanism serves as an environmental financial instrument aimed at achieving cross-border water quality standards and promoting sustainable watershed development. This study develops differential game models by integrating pollutant dynamic evolution processes with the distinct environmental objectives of upstream and downstream jurisdictions. The analysis compares economic outcomes across three compensation frameworks: No Eco-compensation (NEC), Upstream-Downstream Eco-compensation (UDEC), and Downstream-Upstream Eco-compensation (DUEC), coupled with three policy mechanisms: No Reward-Punishment Mechanism (NRPM), End-of-Period Assessment (EPA), and Real-Time Assessment (RTA). Key findings include: (1) Reward-punishment mechanisms significantly enhance stakeholder engagement in pollution control, effectively supporting emission reduction target attainment. (2) The implementation demonstrates that transboundary eco-compensation stimulates collaborative water resource protection between upstream and downstream regions, effectively reducing pollution discharge while enhancing basin-wide water quality and ecological integrity. (3) The mechanism successfully harmonizes economic interests across basin jurisdictions, establishing reciprocal ecological-economic benefits through compensation-provision linkages that balance protection responsibilities with financial returns.

Suggested Citation

  • Zuliang Lu & Mingsong Li & Lu Xing & Junman Li, 2025. "Transboundary River Basin Eco-Compensation with Reward-Punishment Mechanisms: a Differential Game Perspective," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 39(10), pages 4893-4922, August.
    • Handle: RePEc:spr:waterr:v:39:y:2025:i:10:d:10.1007_s11269-025-04181-y
    DOI: 10.1007/s11269-025-04181-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11269-025-04181-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11269-025-04181-y?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
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:spr:waterr:v:39:y:2025:i:10:d:10.1007_s11269-025-04181-y. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.