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Updated: Sep 26, 2025
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Watershed Planning within a Quantitative Scenario Analysis Framework
Published on: July 24, 2016
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Economic Development, Fiscal Ecological Compensation, and Ecological Environment Quality
Hongjie Cao1, Meina Li1, Fengqin Qin2
1School of Economics, Qingdao University, Qingdao 266071, China.
Summary
Fiscal ecological compensation plays a key role in China
Area of Science:
- Environmental Economics
- Green Development Studies
- Public Policy Analysis
Background:
- China's green development faces challenges from the nonlinear relationship between economic growth and environmental quality.
- Fiscal ecological compensation is a critical policy tool for mitigating environmental damage and promoting sustainable development.
Purpose of the Study:
- To analyze the impact of fiscal ecological compensation on green development pathways in China.
- To investigate the direct and indirect mechanisms through which fiscal ecological compensation influences environmental quality and economic development.
Main Methods:
- Empirical analysis using county-level data from China (2017-2018).
- Incorporation of fiscal ecological compensation into a green development analytical framework.
Main Results:
- A nonlinear, N-shaped relationship was observed between economic development and the ecological environment.
- Fiscal ecological compensation demonstrates a direct effect in deterring ecological damage and providing financial compensation.
- Fiscal ecological compensation indirectly influences regional ecological management by affecting economic development.
Conclusions:
- Strengthening fiscal ecological compensation is crucial for China's green development.
- Policy recommendations include expanding compensation coverage, refining system design, and evaluating policy effectiveness.
- Optimizing the fiscal eco-compensation system is vital for achieving high-quality, green development.
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