DISCUSSION ON THE DESIGN OF

COMPENSATION STANDARDS FOR

REGIONAL ENVIRONMENTAL POLLUTION

FROM THE PERSPECTIVE OF NEW

STRUCTURAL ECONOMICS

Yong Qin*

Finance & Economics Department, Xuchang Vocational Technical College,

Xuchang, Henan, 461000, China.

qinyong236@163.com

Reception: 06/03/2023 Acceptance: 09/05/2023 Publication: 02/07/2023

Suggested citation:

Qin, Y. (2023). Discussion on the design of compensation standards for

regional environmental pollution from the perspective of new structural

economics. 3C Empresa. Investigación y pensamiento crítico, 12(2), 257-284.

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ABSTRACT

How to effectively protect the ecological environment while socio-economic

development, to achieve the harmonious and sustainable development of human

society and the natural ecological environment, has been paid more and more

attention by governments and academic circles around the world. Therefore, the

design of compensation standards for regional environmental pollution is proposed

from the perspective of new structural economics. Based on the perspective of new

structural economics, this paper provides a new explanation of the impact of fiscal

decentralization on environmental pollution, according to the economic and technical

indicators related to ecological environmental pollution, with the help of the subjective

and objective empowerment method combined with the analysis of hierarchy method

and entropy method, the weight of each ecological environment pollution evaluation

index in the evaluation and division of ecological environmental pollution level is

studied, and the comprehensive evaluation method is used to construct the ecological

environment pollution technology rating evaluation model, and the compensation

value of regional environmental pollution is finally obtained by combining the panel

regression model. The method of this paper has wide applicability and significant

advantages. The experimental results show that the COD emission of the North Water

Source Area (QZ) of the Qingzhang River is 208t/a, and the upstream of the drinking

water source area needs to compensate 3.88 million yuan downstream for water

quality and water ecological restoration.

KEYWORDS

New structural economics; Ecological environment; Fiscal decentralization;

Compensation standards; Panel regression model

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INDEX

ABSTRACT

KEYWORDS

1. INTRODUCTION

2. NEW STRUCTURAL ECONOMIC ANALYSIS AND CHARACTERISTIC FACTS

2.1. Fiscal decentralization

2.2. Characteristic facts

3. REGIONAL ENVIRONMENTAL POLLUTION COMPENSATION STANDARD

DESIGN

3.1. Compensation standard system design principles

3.2. Determination of the weight of the indicator system

3.3. System evaluation and pollution level division

3.4. The standard model of ecological pollution compensation

3.4.1. Variable and sample selection

3.4.2. Panel regression analysis

3.4.3. Ecological pollution compensation standards

4. RESULTS AND ANALYSIS

5. DISCUSSION

6. CONCLUSION

REFERENCES

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1. INTRODUCTION

With the rapid economic growth, the large-scale development and consumption of

resources, and the increasingly serious damage to the environment, environmental

problems such as the destruction of species habitats, the sharp decline in biodiversity,

and the decline in ecological functions have become one of the important ecological

problems that plague the sustainable social and economic development of all

countries in the world [1-3]. In this process, the environmental problems brought about

by the development of the industry have attracted the attention of people from all

walks of life such as governments, non-governmental organizations, and scientific

research, and the contradiction between environmental protection and economic

development has become one of the key issues in the region [4-5]. To enhance

ecological functions and improve the ecological environment, in addition to providing

positive externalities (such as returning farmland to forests and grasslands to provide

ecosystem services such as soil and water conservation), it is often necessary to

reduce negative externalities, such as reducing resource development and pollution

emissions in industries with high environmental risks in the region [6-9]. In particular,

high-environmental risk industries located in important ecological function zones even

need to be completely withdrawn. In the short term, protecting the environment

requires sacrificing certain economic interests, and even "shutting down and

transferring" enterprises that have previously obtained access permits to restrict their

production and development [10]. For example, to provide high-quality and sufficient

water resources downstream, upstream and midstream mining enterprises need to

reduce production capacity, reduce production and discharge, and give up some of

their development authority. To maintain the continuity of water flow and protect

important aquatic biological resources, hydropower enterprises located in nature

reserves or important ecological function areas need to be closed [11-13].

As an institutional arrangement to regulate the relationship between environmental

damage and the protection of the interests of the main body of the ecological

environment, ecological compensation has become an effective way to protect the

ecological environment [14]. Ecological environment compensation mainly refers to

the maintenance of ecosystem stability by improving the ecosystem status of the

damaged area or establishing new habitats with comparable ecosystem functions or

quality, to compensate for the decline or destruction of existing ecosystem functions or

quality caused by economic development or economic construction [15-18]. In the

ecological compensation mechanism, the subject and object of compensation, the

standard and compensation method of compensation is a core issues, of which the

determination and accounting of ecological compensation standards is a difficult point

of ecological compensation mechanism [19-20]. The research on ecological

compensation in China began in the 1980s on ecological compensation in the

ecological sense and the exploration of ecological compensation in the economic

sense, and after the United Nations Conference on Environment and Development, it

entered the active theoretical discussion stage based on environmental loss

compensation and became a hot issue in all sectors of society in China [21-24]. Due

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to the low existing ecological compensation standards in China and the inconsistent

cost accounting of compensation standards, it is of great significance to build an

effective ecological compensation standard cost accounting system to provide the

main basis for the formulation of ecological compensation standards to protect the

interests of relevant entities and promote the healthy and benign development of the

ecological environment [25].

Literature [26] aimed at the current problems of single ecological compensation

standards and limited scope of determination. This paper proposes indicators such as

the utilization of pollution footprint, pollution footprint efficiency, environmental carrying

capacity, regional average absorption capacity and economic benefit loss value.

Establish a standard model of ecological compensation. Taking 31 provinces in China

as examples, an empirical analysis was conducted. First, set each province as a

group. Compare pollution footprints within the group with national pollution footprints

to determine the subject-object of compensation. Secondly, the ecological

compensation model is used to calculate the ecological compensation (compensation)

standard of each group (province), combined with the per capita pollution footprint and

pollution footprint efficiency, and the provinces are divided into high, low, low, low and

low combinations. Finally, personal suggestions are put forward for different

combinations, the combination of low and high is the ideal combination, the

combination of high and high should reduce pollution, adjust the industrial structure,

and the combination of high and low should be supported by policies to improve the

efficiency of the regional ecological environment, and the combination of low and low

should be through scientific and technological progress. Improve regional output

efficiency. Literature [27] believes that the evaluation of the comprehensive benefits of

ecological compensation in water source areas is the key to scientifically formulating

the ecological compensation mechanism and ensuring the effective operation of

ecological compensation, and is also an important reference for determining

reasonable compensation standards. Based on the influencing factors of all aspects, a

comprehensive benefit evaluation system for ecological compensation in water

sources was formulated, including 15 evaluation indicators such as ecological

benefits, economic benefits and social benefits, and monetary value accounting was

carried out on the ecological compensation benefits of Yunmeng Lake in Shandong

Province using the market value method and the shadow engineering method. After

the implementation of the ecological compensation of Yunmeng Lake, the ecological

benefits increased by 106.4975 million yuan, the economic benefits were 77.1859

million yuan, and the social benefits were 56.0318 million yuan, with significant

comprehensive benefits, but there were also problems such as education, tourism and

other benefits were not obvious, and the ecological, economic and social benefits

increased unevenly. In the future, we should pay attention to the economic and social

driving role of ecological compensation in water source areas, enhance interaction

with farmers, implement differentiated compensation, and extend the period of

ecological compensation to promote the sustainable development of ecological

compensation in water source areas. In literature [28], a standard model of ecological

compensation based on pollution footprint was constructed, and the ecological

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compensation standard in Guangzhou was studied using this model: taking the

emission of four major pollutants as the accounting goal, the population was divided

into three major groups according to the three major industries, the per capita

pollution footprint and per capita pollution footprint efficiency of the three major groups

were calculated, and the compensation or compensation standards of the three major

groups were calculated based on the average ecological status of Guangzhou. The

results show that Guangzhou's primary and tertiary industries should receive

ecological compensation of 67.379 billion yuan and 1926.728 billion yuan respectively

due to the transfer of pollution footprints, while the secondary industry should pay

207.037 billion yuan in ecological compensation due to the excessive occupation of

ecological footprints. The study of ecological compensation standards based on

pollution footprints attempts to introduce pollution footprint theory into the study of

ecological compensation standards, which can not only enrich the connotation of

ecological footprint theory but also provide a useful reference for the study of

ecological compensation standards. Literature [29] reveals the willingness and

payment level of farmers in Yongdeng County, Gansu Province, to compensate for

agro-ecological compensation, and provides a basis for the government to carry out

relevant agro-ecological construction in the future. Based on the questionnaire survey,

the conditional value assessment method (CVM) was used to analyze the willingness

and payment level of farmers in Yongdeng County for agroecological compensation.

Farmers in Yongdeng County have good ecological cognition and willingness to

compensate. The number of farmers willing to compensate reached 87.76% of the

total number of people surveyed, and the average level of agricultural ecological

compensation payment reached 52.11 yuan per capita. The degree of importance

affecting farmers' willingness to pay for agricultural ecological compensation is, in

order: the degree of education> the importance of per capita annual net income> the

importance of the ecological environment> the degree of impact on themselves> the

number of days of migrant work> the degree of environmental concern> whether to

manage the geographical location of > age >area. Farmers in Yongdeng County have

a strong willingness to compensate for agricultural ecology, and the level of payment

is in line with the actual situation, which is affected by personal cognition and per

capita income. Literature [30] first expounds on the meaning and significance of

watershed ecological compensation, then analyzes the subjects and objects in the

process of watershed ecological compensation, introduces and analyzes the current

ecological compensation methods of river basins, and finally explains the standards

and mechanisms of watershed ecological compensation, to ensure the objectivity of

the ecological compensation process of river basins and achieve the role of protecting

the ecological environment of river basins. The above literature explains the

significance of the study on ecological compensation standards for economic

development and ecological benefits in various places, and the environmental

information and value are not included in the accounting scope, and the research

perspective is relatively narrow. Therefore, how to embed the basic methods of

environmental pollution into the accounting of ecological compensation standards,

establish a complete set of ecological compensation standard cost accounting

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systems, and provide a meaningful reference for the determination of ecological

compensation standards is a focus of text research.

From the perspective of new structural economics, this paper defines the concepts

of ecological pollution compensation and market-oriented models, refines and

summarizes the relevant theories, and proposes a theoretical model for the design of

market-oriented ecological pollution compensation standards. At the technical level,

through data and information collection and application of subjective and objective

empowerment methods to set weights, the comprehensive evaluation model is used

to assess the technical level of ecological and environmental pollution, and the

compensation value of regional environmental pollution is obtained through the panel

regression model, to better guide policy formulation and implementation and promote

ecological development.

2. NEW STRUCTURAL ECONOMIC ANALYSIS AND

CHARACTERISTIC FACTS

2.1. FISCAL DECENTRALIZATION

New Structural Economics (NSE), proposed and advocated by Lin Yifu,

emphasizes that economic development is a process of continuous change in

industry, technology, infrastructure, and institutional structure, in which there must be

both an "efficient market" and a "promising government" [31]. Among them, the

government itself is the most important institutional arrangement in economic

development, and the development strategy it formulates plays an important role in

the national economy. Starting from the degree of matching between the industrial

structure and the factor endowment structure, it is proposed to classify the various

economic development policies of the government into different development

strategies. The concept of development strategy is a highly abstract summary of the

various economic policy actions of the government. According to whether it is in line

with comparative advantage, it is divided into a development strategy that follows

comparative advantage and a development strategy that violates comparative

advantage. Specifically, (1) under the development strategy of comparative

advantage, the government's economic policies are to select the corresponding

industry, product and technology structure to support the enterprise by selecting the

corresponding industry, product and technology structure according to the local factor

endowment structure of the backbone, and the enterprise chooses to enter the

industry that meets the comparative advantage and the specific technology production

product according to the relative price information of the factors in the market. Since

enterprises are entering industries that are in line with local comparative advantages,

such enterprises are self-sustaining and able to survive without external support. (2)

On the contrary, if the development strategy contrary to comparative advantage is

adopted, and the government's various economic policies ignore the comparative

advantages determined by the endowment structure of the region, thus causing the

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industrial structure of the region to deviate from the optimal structure, once the

enterprise enters an industry that does not have a relatively favorable heat, and the

products produced are not competitive in the market, then the type of enterprise is not

self-sustaining, and at this time, if the enterprise wants to survive in the fierce market

competition, it can only be maintained through a series of economic distortions such

as government subsidies and tax incentives.

Figure 1. Conceptual definition of a development strategy

Conceptually, fiscal decentralization refers to the process of decentralization of

some fiscal management and decision-making power by the central government to

local governments, so a certain degree of fiscal decentralization always corresponds

to the fiscal autonomy owned by a certain level of government. Due to the wide

geographical area and obvious regional differences in China, the resource

endowments and potential relatively favorable heat of each region are different, and

only by fully grasping the information such as the resource endowments of each

region and the constraints it faces can we formulate a development strategy that is in

line with its relatively favorable heat [32]. In this context, if the central government

directly formulates development strategies for each region, due to information

asymmetry and excessive cost of collecting and processing information, it is difficult

for the central government to formulate a development strategy that meets the

comparative advantages of each region's resource endowment conditions, resulting in

a "one-size-fits-all" situation. Compared with the central government, local

governments have obvious information and enthusiasm, and they have a better

understanding of the stage of development that the local government is in, thus

making local governments more efficient than the central government in formulating

development strategies. Therefore, under the fiscal decentralization system, the

higher the degree of regional decentralization, the greater the autonomy of the local

government over economic development, and the higher the probability of it following

a more favorable development strategy according to the information held by the local

government. The more the development strategy is in line with comparative

advantage, the less environmental pollution will be caused.

If the degree of regional fiscal decentralization is low and the central government

interferes greatly with local development, then the possibility of local development

strategies violating their comparative advantages is very large, resulting in distortion

of the local industrial structure and deviation from its endowment structure, and the

enterprises in it cannot live on their own, and while the enterprises cannot obtain

profits, the overall regional economy is also developing slowly. However, under the

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political promotion and economic incentive of GDP-oriented, to achieve the goal of

economic development, local government officials have to adopt a series of distorting

mechanisms such as lowering environmental access barriers to attract foreign

investment, relaxing the level of environmental regulations, distorting the structure of

fiscal expenditure, and insufficient environmental governance to promote economic

growth. The economic growth stimulated in this context is unsustainable, on the one

hand, enterprises cannot live on their own, even if environmental constraints tighten,

they cannot internalize environmental pollution, and environmental soft constraints

appear. On the other hand, the fiscal revenue of local governments is not enough to

pay for environmental governance, which leads to the deterioration of environmental

pollution problems.

Based on the above theoretical analysis, the research hypothesis is put forward

that the higher the degree of fiscal decentralization, the more the development

strategy is in line with its relatively favorable heat, and the environmental pollution

problem will be less light.

2.2. CHARACTERISTIC FACTS

Before conducting an empirical analysis, the preliminary relationship between fiscal

decentralization and development strategy is first observed by describing

characteristic facts. The statistical relationship between fiscal decentralization and

development strategy is obtained based on the level data using the Fiscal Autonomy

(FDEC1) and the Technology Choice Index (TCIR) as proxy variables for fiscal

decentralization and development strategy, respectively [33]. The scattering points of

fiscal decentralization and development strategies are shown in Figure 2.

Figure 2. Scatter plot of fiscal decentralization and development strategies

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From the perspective of scatter chart 2, fiscal decentralization is positively

correlated with the development strategy, and its correlation coefficient is 0.502,

indicating that the higher the degree of fiscal decentralization, the higher the degree to

which the local development strategy follows its comparative advantage. Further, from

the perspective of the nuclear density map of fiscal decentralization and development

strategy in the eastern, central and western regions of China, as shown in Figures 3

and 4.

Figure 3. The nuclear density of fiscally decentralized sub-regions

In Figure 3, the degree of fiscal decentralization in the eastern region is generally

higher than that in the central and western regions, with the average being 0.722 in

the eastern region, 0.468 in the central region and 0.389 in the western region.

Figure 4. The subregional nuclear density of development strategies

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In Figure 4, the distribution of the TCIR index in the eastern region is generally

biased to the central and western regions, that is to say, the development strategy in

the eastern region is less distorted than in the central and western regions, and on

average, the eastern region is 0.243, the central region is 0.007, and the western

region is 0.005. It can be seen from this that the basic characteristic facts can support

the theoretical expectations of this paper.

3. REGIONAL ENVIRONMENTAL POLLUTION

COMPENSATION STANDARD DESIGN

3.1. COMPENSATION STANDARD SYSTEM DESIGN

PRINCIPLES

Due to the variety and complexity of the factors for evaluating the ecological

environment pollution level, when designing the ecological environment pollution level

index system, it is necessary to select the indicators that cause ecological

environmental pollution from multiple aspects and multiple angles to meet the

systematic assessment and comparison [34]. The specific design principles have the

following aspects:

Comprehensiveness. Comprehensively and objectively reflect the pollution

status of the ecological environment. The designed index system must be able

to reflect the degree of ecological environmental pollution from all aspects,

which is directly related to the quality of the entire system.

2. Scientific. The indicator system must be based on science and fully reflect the

internal relationship between ecological environmental pollution and various

indicators. The methodological science of determining the weight of indicators

and the grading of early warnings ensure the authenticity and objectivity of the

system;

Operability. The selected indicators should have reliable sources and ensure

the availability of data, the established indicator system is concise and easy to

operate and understand, and the internationally common names, concepts and

units are adopted as far as possible, which is conducive to the actual operation

of relevant personnel.

3.2. DETERMINATION OF THE WEIGHT OF THE

INDICATOR SYSTEM

Environmental pollution refers to the phenomenon that human beings directly or

indirectly emit substances or energy that exceed their self-purification capacity into the

environment, thereby reducing the quality of the environment and adversely affecting

the survival and development of human beings, ecosystems and property [35]. Since

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this article mainly discusses the ecological pollution compensation standard, industrial

enterprises in the external discharge of pollutants by the traditional view mainly

include air pollution, water pollution and solid waste pollution, so in the design of the

ecological environment pollution level evaluation index system, this paper combined

with the above indicators design ideas and original, to comprehensively and

objectively reflect the ecological environment pollution status, according to the "China

Environmental Statistics Yearbook" disclosed pollutant emission data [36], design the

following three types of pollutant indicators: air pollution indicators, Indicators of water

pollution and indicators of solid waste pollution.

Due to the different roles of the above index factors in the index system, the degree

of impact on ecological environmental pollution is different, to distinguish their

differences, certain mathematical methods should be used to determine the weight

values of each evaluation index. The reasonableness or non-validity of the weight

determination of the indicators is directly related to the accuracy and meaning of the

evaluation results. This paper adopts a subjective and objective empowerment

method that combines the analytic hierarchy method with the entropy method. The

analytic hierarchy method is a combination of qualitative and quantitative, systematic,

hierarchical analysis method, so that people's thinking process is hierarchical, layer by

layer comparison of relevant factors and layer by layer to test whether the comparison

results are reasonable, to provide a convincing quantitative basis for analytical

decision-making. However, in recent years, the analytic hierarchy method has been

constantly questioned by the excessive subjectivity of the weight, so this paper uses

the entropy weight method to determine the weight based on the analytic hierarchy

method, and finally averages the weight values obtained by the two methods to obtain

a more scientific and reasonable weight value. Regarding the emergence of entropy

law, first of all, the German physicist Clausius introduced the concept of "entropy" into

the field of thermodynamics in 1855 to describe the degree of chaos in the thermal

system, and then developed into "information entropy" by Shannon, the founder of

information theory in the United States, to quantify the size of the amount of

information described, and then the social sciences began to apply "entropy" to the

process of determining weights in multi-objective decision-making, and the academic

community generally defined the method of determining the weight as the entropy law

[37]. The entropy weight method is determined according to the size of the amount of

information reflected by the evaluation object, which has accuracy and objectivity and

has been well applied in various research fields. The ecological environment pollution

level index system is shown in Figure 5.

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Figure 5. Ecological environment pollution level index system

In Figure 5, the influencing factors of ecological environmental pollution caused by

unnatural factors are analyzed, and the indicators of air pollution, water pollution and

solid waste pollution are extracted. The design of ecological and environmental

pollution level indicators involves multidisciplinary applications such as atmospheric

science, ecology, economics, management, accounting, and mathematical statistics.

Mainly from the perspective of the influencing factors of the ecological pollution rating

evaluation index system design and compensation standards, the design of market-

oriented ecological pollution compensation standards is theoretically analyzed, and

the comprehensive evaluation model and panel regression model are used to conduct

technical analysis of the design of market-oriented ecological pollution compensation

standards.

To illustrate the basis for judging the importance of the indicators, this paper first

takes a 1--9 scale according to the scale method proposed by TL. Saaty, as shown in

Table 1, and uses to represent the comparative results of the factor relative to the

factor, then , and establishes the judgment matrix between the levels of the

16 factors currently considered in the ecological environment pollution level evaluation

index system. This is shown in Table 2.

aij

ij =

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Table 1. Saaty scale method

Table 2. Judgment matrix table

Hierarchical single sorting is the process of determining the degree of influence of

the lower factors on a factor in the upper layer, using weights to express the degree of

influence, calculating the maximum eigenvalue of the matrix

, and its

corresponding normalized feature vector

, and the eigenvector

is the index weight.

When determining the order of a matrix is large, it is often difficult to construct a

matrix that satisfies consistency. However, judging the matrix should deviate from the

consistency condition by a degree, for this reason, it is necessary to identify whether

the judgment matrix is acceptable, which is the connotation of the consistency test.

Definition of consistency indicator , randomness indicator and the

degree of the judgment matrix, in general, the larger the order of the matrix, the

greater the probability of random deviation of consistency, which can be obtained by

looking up the table. In general, when the consistency ratio is , the

judgment matrix is considered to pass the consistency test, otherwise it does not have

a satisfactory one- consistency. From this, we calculate the weight results of each

level of the indicator.

Total sorting is performed layer by layer from top to bottom on a single-sort basis.

According to the weighted combination of the weighted results of each level of

Scale Meaning

1 The influence of factor i is the same as that of factor j

3 The influence of factor i is slightly stronger than that of factor j

5 The influence of factor i is stronger than that of factor j

7 The influence of factor i is obviously stronger than that of factor j

9 The influence of factor i is absolutely stronger than that of factor j

2,4,6,8 The influence of the i-th factor relative to the j-th factor is between the

above two adjacent levels

a13

a32

a22

a23

a21

a31

a33

a12

a11

λmax

k= (k,k2,…,k)

∑kj= 1

max

−n

n−1

0.1

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indicators calculated above, the weighted values of the comprehensive evaluation

indicators and are obtained.

This paper assumes that the evaluation matrix of the entropy weight method is

, where the evaluation object is , which represents the

evaluation index , and represents the original value of the index of

the evaluation object. The calculation step is divided into three steps.

Step 1: standardize the processing, the formula is:

(1)

Where, and represent the maximum and minimum values of the

indicator in the evaluation object, respectively.

Step 2: calculate the entropy of the indicator, the expression is:

(2)

(3)

Step 3: Determine the entropy weight of the indicator:

(4)

On the one hand, although the process of determining weights by the analytic

hierarchy method has the advantages of clarity of hierarchy and the combination of

quantitative and qualitative, the analytic hierarchy method will inevitably cause the

subjectivity of the index weights through artificial scoring by experts when constructing

the two-two comparison judgment matrix. On the other hand, the entropy weight

method is determined according to the size of the amount of information reflected by

the evaluation object, which has accuracy and objectivity and has been well applied in

various research fields, which can well avoid the weakness of the analytic hierarchy

method.

From the perspective of the victim entity of ecological environmental pollution, the

severity of ecological environmental pollution is subjective; From the technical point of

view of ecological environmental pollution, the severity of ecological environmental

pollution is objective, so considering the characteristics of both subjectivity and

k= (k1,k2,…,k16)

∑

j=1

kj=

X= (xij)m×n

m(0<i<m)

n(0<1<n)

xij

yij =

xij −mini

(

xij

)

maxi

(

xij

)

−minn

(

xij

)

maxi(xij)

min

(xij)

ij =yij /

∑

j=1

j=−

∑

i=1

rij ln ri

(

1−ej

)

∑

j=1

(

1−ej

)

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objectivity of ecological environmental pollution, before evaluating the ecological

environment pollution level, the setting of the weight of ecological environmental

pollution indicators also adopts the subjective and objective empowerment methods

combining the analytic hierarchy method and the entropy rights method, see Table 3.

The calculation formula is:

(5)

(6)

Table 3. Weight setting of ecological environment pollution level evaluation index

3.3. SYSTEM EVALUATION AND POLLUTION LEVEL

DIVISION

After determining the weights of each ecological environment pollution index, it can

be used, and certain technical methods can be synthesized on the ecological

environment pollution level index system, and the evaluation is combined, and the

weights of the ecological environmental pollution evaluation indicators can be

determined through the subjective and objective empowerment method. Therefore, it

is objective, accurate and simple to quantitatively evaluate the pollution level of the

(

kj+tj

)

j= (1,2,…,16)

Pollution classification Index system Index weight wj

Air pollution

Waste gas (100 million standard cubic meters) w1

Sulfur dioxide (10000 tons) w2

Smoke and dust (10000 tons) w3

Dust (10000 tons) w4

Water pollution

Waste water (10000 tons) w5

Mercury (ton) w6

Cadmium (ton) w7

Hexavalent chromium (ton) w8

Lead (ton) w9

Arsenic (ton) w10

Volatile phenol (ton) w11

Cyanide (ton) w12

Chemical oxygen demand (ton) w13

Petroleum (ton) w14

Ammonia nitrogen (ton) w15

Solid waste pollution Solid waste (ton) w16

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ecological environment. This paper adopts a comprehensive evaluation model, which

takes the following form:

(7)

Among them,

is the comprehensive evaluation index of the

ecological environment pollution level of the polluting entity in the

year, and

is the weight of the evaluation index, has the same meaning as

above.

Obviously, by such processing, it is possible to make . Since China does

not yet have a comprehensive rating evaluation standard for air pollution, water

pollution and solid waste pollution, this paper considers the two extremes of ecological

pollution when formulating evaluation standards. When the polluting entity has no

pollutant discharge, the ecological and environmental status is excellent, and the

comprehensive evaluation index is 0 at this time. When the total amount of pollutants

discharged by polluted entities is large, causing extreme damage to the ecological

environment and production and life, the degree of ecological environmental pollution

will be very serious, and the comprehensive evaluation index is 1 at this time. We will

be the worst degree of ecological environmental pollution grade set as

, the

comprehensive evaluation index set as , the lightest degree of ecological

environmental pollution grade set as , the comprehensive evaluation index set as

, of which the specific value of

can be determined

according to the above comprehensive evaluation formula and combined with a large

number of sample data values, so we will divide the ecological environmental pollution

into grades according to the comprehensive evaluation index, and according to the

development of the situation and the effect of measures, the evaluation results are

dynamically adjusted, and the ecological environmental pollution can be upgraded or

degraded. This is shown in Table 4.

Table 4. Comprehensive evaluation index and ecological environment pollution level

3.4. THE STANDARD MODEL OF ECOLOGICAL POLLUTION

COMPENSATION

∑

j=1

ωjyi

P(0<i<m)

ωj(0<j< 16)

yij

0≤p≤1

(Pn−1,1]

[0,P1)

P(i= 1,2…, n−1)

A comprehensive index

value of evaluation index

Ecological environment

pollution level

Severity of ecological

environment pollution

Very poor (very serious)

Poor (severe)

Excellent (slight)

⋮

P1≤P<P2

Pn−1<P≤1

⋮

0≤P<P1

⋮

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3.4.1. VARIABLE AND SAMPLE SELECTION

To facilitate the determination of the ecological pollution compensation standard

from the economic perspective, it can be assumed that in the case of a certain income

of the injured economic entity, the environmental cost of the economic entity caused

by the ecological environment pollution must be reflected in the decline in the total

profit of the injured economic entity, for this reason, the total profit of the injured

economic entity is taken as the dependent variable, and the ecological environment

pollution level of the polluting entity determined above is taken as the independent

variable, and the corresponding control variables need to be selected due to a large

number of other influencing factors of the change in the total profit of the affected

economic entity. The specific situation of the control variable needs to be determined

by the specific research object and combined with the relevant financial theory, such

as the selection of the corresponding control variables of the industry and the

enterprise will be completely different.

Based on the above-mentioned classification of ecological and environmental

pollution levels, considering that China's environmental economic statistics have just

started, and environmental and economic data are seriously lacking, so to expand the

sample size, make the estimation results accurate, consider the panel data

established by collecting market-oriented ecological pollution standards, and the data

source can conduct field research and investigation by selecting representative, long

span time, and a certain number of polluted areas (such as downstream or downwind

areas) polluted objects (such as land) and units (such as listed enterprises).

Table 5. variable design and explanation

Variable

Mark

Interpretative statement

dependent variableTotal profit of

the affected economic entity PROFIT

Total profits of economic entities in

each year within the sample time

span

Explanatory variable

Pollution grade index of pollutant

discharge entity

The Eco-environmental pollution

grade index of pollutant discharge

entities can be obtained according

to the above comprehensive

evaluation model. If there are

many pollutant discharge entities,

in order to avoid too many

variables, the average value of

Eco-environmental pollution index

can be taken according to the

pollutant discharge entities

control variable

Other major variables affecting the

total profits of the affected

economic entities

Controis

The specific situation of control

variables depends on the specific

research object and the theory of

related disciplines. For example,

the selection of corresponding

control variables for industries and

enterprises will be quite different

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3.4.2. PANEL REGRESSION ANALYSIS

Through the above analysis, the following panel regression model is established in

this paper to investigate the degree of influence of the ecological environment

pollution level index of polluting entities on the total profits of the affected economic

entities:

(8)

Where represents the number of cross-sections and

represents a total of time series from year 1 to year . is the total profit

of the injured economic entity in the year to the 1st year, is the ecological and

environmental pollution level index of the polluting entity from the 1st to the year,

and is a series of control variables. In addition, before performing panel

data regression analysis, it is necessary to consider many problems such as variable

collinearity, heteroscedasticity, sequence correlation, and cross-section correlation.

3.4.3. ECOLOGICAL POLLUTION COMPENSATION

STANDARDS

Will make the sample data into the panel regression model, the unknown

parameters, get the upper hand area) (upstream basin drainage entity discharge

pollutants reduced after the ecological pollution poses a disadvantage to rank index

per unit area (downstream) suffer entity economic harm the pollution of ecological

compensation standard pollution (that is, the marginal cost) calculation formula:

(9)

The recovery cost calculation formula is as follows:

(10)

Where, is the recovery cost, and the unit is 100 million yuan /t; is the sewage

treatment cost, and the unit is yuan /t; is the COD concentration of inlet water, and

the unit is mg/L; is the COD concentration of outlet water, and the unit is mg/L.

The calculation formula of the ecological compensation standard of water source

based on water environmental capacity is:

(11)

It is believed that the external impact of ecological pollution acts can be regarded

as a pollution right, the property rights of the parties to the ecological pollution acts

can be clearly defined, and the ecological pollution compensation standards are

determined by the virtual "ecological pollution rights trading market" formed by the two

PROFITit =αit +βit Pit +γit Controlsit +εit

i= 1,2,⋯,n

i= 1,2,⋯,m

PROFIT

Controls

(P)

(E)

∂(PROFIT )

∂P

P0= 10−5×D/(Ci−C0)

P=P0(M−M0)

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parties, and the numerical size needs to be measured in combination with the amount

of pollutant discharged by the polluter exceeding the standard and the economic value

loss of the injured party. In the future market-oriented ecological pollution

compensation practice, the two sides can also bargain for some of the differences

until the price acceptable to both sides is reached, so that the "visible hand" of the

government is gradually replaced by the "invisible hand" of the "ecological pollution

compensation" market.

According to the ecological pollution compensation standard from the economic

perspective, if ecological environmental pollution occurs, the amount of ecological

pollution compensation under the economic perspective is calculated according to

the following steps:

1. Judge the ecological environment pollution grade

, and the

specific value ;

Panel regression analysis was used to determine the marginal cost of

ecological environmental pollution suffered by the affected economic entity,

and the specific value was ;

3. According to the above criteria, determine the economic loss of the

affected economic entity caused by ecological environmental pollution, namely,

obtain the compensation amount of regional environmental pollution from the

perspective of new structural economics.

4. RESULTS AND ANALYSIS

In this paper, we take the Zhangwei South River Basin as an example, the

Zhangwei South Canal water system originates from the Taihang Mountains, is one of

the five major river systems in the Hai River Basin, flows through the five provinces

and cities of Jin, Hebei, Henan, Lu and Tianjin, with a basin area of 38,000 km.

Among them, the upstream mountainous area is 25,000 km, the middle and lower

reaches of the plain area are 13,000 km, the Zhangwei South Canal is composed of

two major tributaries of the Zhanghe River and the Weihe River, the two rivers are

called the Wei Canal after the confluence of Xuwancang in Guantao County, Hebei

Province, and are divided into the South Canal (the mainstream of the Haihe River)

and the Zhangwei New River (into the Bohai Sea) through the Sinu Temple hub, and

the important water source protection areas of the Zhangwei South Water System are

the Zhangwu Reservoir (AY) of Anyang City, the Water Source Area of Hebi City (HB),

the Qingzhang River Hebei Water Source Area (QZ), the Yuecheng Reservoir (YC),

and the Qingzhang Dongyuan Water Source Area (QZD). Most of these water source

protection areas are located upstream of the river basin, shouldering the responsibility

of providing excellent water quality, sacrificing some development opportunities, and

in the case of providing excellent water quality, the downstream should make

ecological compensation for these areas to compensate for the loss of upstream

Vij

Rj(j= 1,2,⋯,n)

Vij =βij Pj

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areas; However, the overuse of water resources and the disorderly discharge of

sewage by some upstream water-using units will cause serious water pollution

accidents, sacrificing the right to use water resources downstream, and using

compensation measures based on the perspective of new structural economics to

discuss regional environmental pollution, the main body of ecological compensation

can be clarified and provide a basis for the formulation of ecological compensation

standards.

Based on the actual data collected, the main water source areas of the basin are

analyzed, as shown in Table 6. The environmental capacity of the main drinking water

source protection area in the sub-basin of the Zhangwei South Canal was calculated,

and the results are shown in Figure 6.

Table 6. The main water source areas of the Zhangwei South River Basin

Figure 6. The environmental capacity of the main drinking water source protection area in the

Zhangwei South Basin

Water source area Length of reach

(m)

flow

(m3/s)

Current Speed

(m/s)

COD degradation

coefficient (1/d)

Anyang Zhangwu

reservoir

5 4 0.1 0.25

Hebi water source area 48 3.2 0.2 0.25

Qingzhang River Hebei

water source area

45 0.82 0.27 0.25

Yuecheng Reservoir 51.2 0.3 0.19 0.5

Qingzhang Dongyuan

water source area 103.5 0.1 0.14 0.25

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Figure 6 shows the COD emissions of pollutants in each water source area after

the investigation and data collation, of which the emission of COD in the Yuecheng

Reservoir Water Source Protection Area (YC) is the smallest, reaching only 98t/a,

indicating that the water resources in the water source area are well protected, the

emission of COD of Zhangwu Reservoir (AY) in Anyang City is 205t/a, the emission of

COD in the North Water Source Area (QZ) of Qingzhanghe River is 208t/a, and the

emission of Qingzhang Dongyuan Water Source Area (QZD) is 194t/a. The COD

emission of the drinking water source area (HB) in the water source area of Hebi City

was the largest, reaching 1088.1t/a, indicating that the water resources in the water

source area were excessively wasted. Ecological problems are essentially

environmental problems, and the accounting of ecological compensation standards

should also be based on environmental cost accounting to promote the harmonious

and unified development of social economy and natural ecology.

The treatment cost of major urban sewage treatment plants in China is 1.29 yuan /

t, the COD concentration of inlet water is 253.79 mg / L, and the COD concentration of

effluent is 22.03 mg / L. Bringing the data into the formula yields that the recovery cost

is 100 million yuan/t.

Figure 7. COD emissions by water source area

If the result is positive, that is, there is still a surplus of environmental capacity, the

downstream should be compensated for the excellent water quality provided

upstream; If the remaining environmental capacity is negative, that is, the upstream

water does not meet the specified water quality standards, the downstream needs to

carry out water ecological restoration measures to meet the water quality standards,

so the upstream should compensate the downstream accordingly.

Among them,

is the water environment capacity of the functional area, the unit is

mg, and

is the total pollutant discharge. From the previous calculations, the

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recovery cost of water resources is

billion yuan /t, and the data is

brought into Equation 11 to obtain the ecological compensation standard of each

water source (a negative number indicates that the pollutant emission exceeds the

water environment capacity, and the upstream pays the corresponding cost). The

results are shown in Figure 8.

Figure 8. Ecological compensation standards for each water source area

The impact of polluting substances discharged by enterprises and units in Hebi City

Drinking Water Source Area, Yuecheng Reservoir Water Source Area and Qingzhang

Dongyuan Shanxi Conservation Area is within the scope of water environment

capacity, and there is still a surplus water environment capacity, and the downstream

upstream compensation is not necessarily used to compensate for the provision of

excellent water quality, and the ecological compensation costs downstream to the

upstream of Hebi Drinking Water Source Area, Yuecheng Reservoir Water Source

Area and Qingzhang Dongyuan Shanxi Conservation Area are 282,310,000 yuan and

620,000 yuan /a, respectively.

According to the 2021 water environment monitoring of Anyang City, due to the

discharge of a large amount of domestic sewage and industrial wastewater along the

river, the water quality in the jurisdiction shows a deterioration trend of different

degrees, and the water quality of the main rivers and reservoirs in Anyang City, the

water quality of class II-III water that meets the national standard is very small, and

the overall quality is poor. Combined with the research in this paper, the upstream

drinking water source area of Zhangwu Reservoir in Anyang City needs to

compensate 4.53 million yuan downstream for the implementation of measures such

as downstream sewage treatment and water ecological restoration.

The demand for water for the socio-economic development of the Qingzhang River

Basin is increasing, and industrial wastewater and urban domestic sewage are directly

5.57 ×10−5

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discharged into the river without treatment, resulting in river water pollution. The

amount of water entering the upper reaches of the Qingzhang River has been greatly

reduced, and the pollutants entering the river have greatly exceeded the pollution

absorption capacity of the river, resulting in the serious deterioration of the water

quality of the Qingzhang River, which has caused great hidden dangers to the safety

of drinking water quality, and the implementation of ecological compensation

measures, the upstream of the drinking water source area of the Qingzhang River in

Hebei needs to compensate 3.88 million yuan downstream for water quality and water

ecological restoration.

5. DISCUSSION

On the one hand, this paper empirically studies and designs the market-oriented

ecological pollution compensation standards of China's industry. Its research

paradigms and methods can provide useful reference and experience basis for further

testing the common corporate pollution compensation standards at the micro level,

especially in the future, when the environmental accounting information disclosure

mechanism of listed companies in China is sound, it is more feasible. On the other

hand, this paper takes the market-oriented ecological compensation standard of the

upper and lower reaches of the Zhangwei South River Basin in China as a case for

testing, but in fact, there is also an inter-provincial pollution compensation problem in

the Boundary of Jiangsu, Zhejiang and Zhejiang and Shanghai in the Taihu Lake

Basin, and the availability and length of the data are still to be studied. Of course, the

research in this paper still needs to be deepened, for example: expanding pollutant

indicators, which can incorporate pollutants issued by new national regulations such

as PM2.5 into the atmospheric ecological pollution compensation standard system;

broadening the compensation object, which can include the health and economic

losses of residents in the downwind area of the industrial zone and the downstream of

the river basin; exploring the compensation implementation mechanism, giving the

existing compensation standards interval values, and introducing game mechanisms

to lay a reliable foundation for the implementation of ecological and environmental

pollution compensation in the future.

6. CONCLUSION

With the rapid development of the social economy, the continuous consumption of

natural resources, and the increasingly prominent ecological and environmental

problems, the awareness of the damaged people on ecological compensation has

been further strengthened, requiring the adoption of reasonable ecological

compensation standards to achieve sustainable social and economic development. To

control and coordinate the relationship between economic benefits and environmental

resources, realize the synchronous optimization of environmental benefits, social

benefits and economic benefits, and promote the harmonious unity of economic

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development, social progress and environmental protection. In this paper, by

designing ecological pollution compensation indicators and constructing a quantitative

model, this paper discusses the principles, influencing factors, methods and

calculation steps of the formulation of market-oriented ecological pollution

compensation standards from the theoretical level. Through the panel regression

model, an empirical study on the design of ecological pollution compensation

standards in China's industrial industry and a case study on the design of

compensation standards in the Zhangwei South River Basin were carried out. The

conclusion is as follows:

From the perspective of new structural economics, the sub-regional nuclear

density of fiscal decentralization is 0.722 in the eastern region, 0.468 in the

central region, and 0.389 in the western region. The sub-regional nuclear

density of the development strategy: 0.243 in the eastern region, 0.007 in the

central region and 0.005 in the western region. This indicates that the higher

the degree of fiscal decentralization, the higher the degree to which local

development strategies will follow their comparative advantages.

According to the treatment cost of major urban sewage treatment plants in

China is 1.29 yuan / t, the COD concentration of inlet water is 253.79 mg / L,

and the COD concentration of effluent is 22.03 mg / L. The ecological

compensation value of each water area is calculated. The comprehensive

evaluation index of unit ecological environmental pollution will significantly

cause damage to the real economy in the downwind area (downstream

watershed), and the market-oriented ecological pollution compensation

standard and compensation amount can be determined by the marginal cost of

pollution.

3. The ecological compensation costs upstream of the drinking water source area

of Hebi City, the water source area of Yuecheng Reservoir and the

downstream of Qingzhang Dongyuan Shanxi Nature Reserve are 282,310,000

yuan and 620,000 yuan/a, respectively. The upstream of the drinking water

source area of Zhangwu Reservoir in Anyang City needs to compensate 4.53

million yuan downstream for the implementation of measures such as

downstream sewage treatment and water ecological restoration. The upstream

of the drinking water source area of Qingzhanghe River Hebei needs to

compensate 3.88 million yuan downstream for water quality and water

ecological restoration.

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