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The ecological compensation (EC) mechanism is an innovative institutional arrangement which can effectively realize the coordinated development of social-economic growth and ecological protection. The current research on the evaluation of the implementation effect of EC mechanism mainly focuses on its environmental performance, how the EC mechanism guides the economically underdeveloped areas in the upper reaches of the basin to embark on the road of high-quality economic development, especially the mechanism of how EC triggers the optimization and upgrading of industrial structure, it is a topic worthy of in-depth discussion. This study takes China's first cross-provincial horizontal EC mechanism pilot (Xin'an River Basin EC) as the research object and regards it as a quasi-natural experiment. This paper selects the annual panel data of the 11 cities involved from 2009 to 2019 and builds a DID model to study the mechanism of EC affecting industrial structure adjustment systematically. The results show that the EC mechanism mainly promotes the adjustment of the industrial structure in the pilot area through two paths, this is achieved by triggering the transfer of backward or highly polluting industries and promoting the upgrading of the industrial structure. At the same time, technological innovation plays a part intermediary role in the impact of EC to promote the upgrading of industrial structure. Further analysis found that the larger the funds of compensation input, the higher the assessment intensity, the better the effects are. Finally, this study puts forward relevant policy recommendations to further release the potential of the horizontal EC for the reference of decision-makers. • We evaluated the mechanism of ecological compensation (EC) on industrial structure. • EC affects the adjustment of industrial structure through industrial transfer and industrial upgrading. • Technology innovation plays a vital role in the process of EC mechanism guiding industrial upgrading. • The compensation amount and standard play a key role in the effectiveness of EC. [ABSTRACT FROM AUTHOR]

Eco-efficiency can effectively measure the relationship between economy, resources, environment, and development. Understanding eco-efficiency is of great practical significance for decision makers tasked with addressing and delivering sustainable socioeconomic development. Based on an "undesirable output Slacks-Based Measure models," this study evaluated the eco-efficiency of 285 Chinese cities during the period 2004–2014, analyzing spatiotemporal dynamics and influencing factors using a Spatial Autocorrelation Panel Data Model. The main results are as follows: From the spatial perspective, eco-efficiency in Chinese cities generally evidenced an M-shaped trend (increasing-decreasing-increasing-decreasing), and imbalanced spatiotemporal dynamics. Furthermore, the urban eco-efficiency generally presented a distinct convergence of HH cluster and LL cluster clubs, with the latter being the most dominant. From the regional point of view, there existed a decreasing trend in the efficiencies of cities, from eastern China to central and western China. In addition, we identified significant differences in the eco-efficiency of different cities in China, and the coefficient of variation of eco-efficiency showed a general decrease. The results of our estimation of the factors affecting urban eco-efficiency showed that the economic development level, the industrial structure, import and export trade, and the information level all had significant positive influence, and local government expenditure, social retail sales of consumer goods, and infrastructure all had a negative effect on urban eco-efficiency. This paper puts forward numbers of suggestions for ways to promote social, ecological, and economic development in Chinese cities, based on our findings. • China's city-level eco-efficiency were estimated using undesirable output SBM model. • Eco-efficiency in China presents significant spatial and temporal distribution characteristics. • Effects of socioeconomic development were explored using spatial autocorrelation panel data model. • Economic development, industrial structure, import and export trade had significant positive impact. • Local government expenditure, social retail sales of consumer goods, and infrastructure had a negative effect. [ABSTRACT FROM AUTHOR]

For most developing countries, local government faces a trade-off between economic growth and environmental protection. The intentions towards having a better environment as the economy grows will trigger a shift in the priorities of local government from economy to environment at a certain level of economic development. To investigate the "pollute first, control later" path in China and how environmental regulation performs differently due to economic development, this paper develops a conceptual model to depict the nexus between economic growth and environmental improvement. A panel threshold model is estimated based on Chinese data from different spatial scales – 30 provinces and 105 environmental monitoring cities. The results validate the threshold of economic development of approximately CNY 90,000 GDP per capita, which represents the turning point for the local government priority change; such that only when it is exceeded does environmental regulation significantly reduce emissions. Until 2016, only 4 provincial districts and 35 prefecture-level cities have crossed the threshold, these being mostly in the more prosperous eastern coastal areas. The results emphasize the need to consider timeliness when evaluating the effectiveness of environmental regulation and highlight the importance of adopting differentiated governance. Moreover, the need to enhance the effectiveness of environmental regulation requires driving the change of local government's priority to the environment and strengthening the institutional capacity of environmental protection agencies. • A conceptual model of local government's goals of economic growth and environmental protection. • Panel threshold model to find the economic threshold of effective environmental regulation. • Environmental regulation is effective only if regional GDP per capita exceeds CNY 90,000. • Timeliness and differentiation should be considered for environmental governance. [ABSTRACT FROM AUTHOR]