The Synergistic Incentive Effect of Fiscal Ecological Transfer Payment on Livelihood and Environmental Quality from the Perspective of Multi-Stakeholder Governance: Taking the Horizontal Ecological Compensation Mechanism in Cross-provincial River Basins as an Example
[an error occurred while processing this directive]
The Synergistic Incentive Effect of Fiscal Ecological Transfer Payment on Livelihood and Environmental Quality from the Perspective of Multi-Stakeholder Governance: Taking the Horizontal Ecological Compensation Mechanism in Cross-provincial River Basins as an Example
LU Hongyuan, MA Jie, CHEN Xudong
School of Public Finance and Administration, Tianjin University of Finance and Economics, Tianjin 300222, China
Abstract Taking the cross provincial river basin horizontal ecological compensation mechanism in China’s fiscal ecological transfer payment system as an example, this paper uses panel data from 135 cities across seven major river basins from 2007 to 2021 to construct a multi-period difference-in-differences ( DID ) model to empirically analyze the mechanism’s role in promoting the coordinated development of living standards and environmental quality in recipient areas from the perspective of multi-stakeholder governance. The results show that the cross-provincial river basin horizontal ecological compensation mechanism can promote the coordinated improvement of living and environmental quality in recipient areas by increasing government expenditures, boosting industrial upgrades and improving public environmental awareness. However, its incentive effects are only significant in areas with low fiscal decentralization, high tax competition and high population density, as well as in low-carbon pilot cities. Additionally, horizontal and vertical ecological transfer payments can work together to positively promote the coordinated enhancement of living and environmental quality in recipient areas. Therefore, we should accelerate establishing cross-provincial basin eco-compensation mechanisms in key regions, enhance financial incentives for multi-stakeholder engagement in public welfare and environmental protection, and streamline coordination between vertical and horizontal eco-fiscal transfer systems.
LU Hongyuan,MA Jie,CHEN Xudong. The Synergistic Incentive Effect of Fiscal Ecological Transfer Payment on Livelihood and Environmental Quality from the Perspective of Multi-Stakeholder Governance: Taking the Horizontal Ecological Compensation Mechanism in Cross-provincial River Basins as an Example. Economic Survey, 2025, 42(4): 016.