The article discusses the environmental impact of industrialization and urbanization, particularly focusing on the Huai River Basin in China, which is facing severe water quality deterioration. The implementation of Watershed Ecological Compensation (WEC) mechanisms aims to balance ecological protection with economic development. While existing research mainly evaluates WEC from qualitative perspectives, this study adopts a comprehensive evaluation model combining subjective and objective data, employing fuzzy comprehensive evaluation and empirical statistical methods.
The article outlines the Huai River Basin’s critical role in China’s grain production and highlights alarming water quality monitoring results from 2009 to 2018, reflecting a decline in water standards. The study sets out to assess the effectiveness of China’s 2018 WEC policy by using data from 2016 to 2022, focusing on water quality, air quality, and economic development across four cities (Xinyang, Huainan, Bengbu, and Huai’an).
Results indicate significant improvements in water quality metrics and air quality since the WEC policy’s implementation, showcasing positive ecological impacts. However, the influence on economic development was limited and varied across cities. The study also identifies challenges, such as the “free-riding” phenomenon in downstream cities and insufficient legal frameworks supporting WEC. Recommendations include enhancing regional cooperation, balancing ecological improvement with economic growth, and developing robust legal mechanisms to support WEC.
Overall, the study contributes valuable insights for improving WEC policies and managing watershed ecosystems sustainably. It emphasizes the importance of coordinated governance between upstream and downstream areas to mitigate environmental issues effectively.