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<p>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.</p>

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

  • 期刊论文

  • 发表日期：

    2025年4月9日

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  • Zuliang Lu,
  • Mingsong Li,
  • Lu Xing,
  • Junman Li

摘要

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.