The impact of basin horizontal ecological compensation policies on carbon emissions: A case study of the Yangtze river economic Belt

The issue of global climate change has garnered increasing attention, with carbon emissions emerging as a significant challenge confronting the world today. As an important means of environmental management, river basin ecological compensation must break through the traditional thinking of "water-centric" and move towards the coordinated development of "pollution reduction". Therefore, the study chooses the watershed scale ecological compensation experiment carried out in the Yangtze River Economic Belt as a natural experiment. Based on the prefecturelevel city panel data from 2008 to 2021, a double difference model is constructed to examine the impact of the basin horizontal ecological compensation policy on carbon emissions and its mechanism. The study shows that the inter-regional horizontal ecological compensation measures have an obvious inhibitory effect on carbon emissions in the region, and through a series of tests, the conclusion is stable. Mechanism testing shows that policy implementation achieves carbon emission reductions through two channels: improving financial development and promoting scientific and technological innovation. The results of heterogeneity analysis verify that the effect of policy implementation is affected by the dual factors of social economy and innovation and entrepreneurship and that key cities and cities with a high innovation and entrepreneurship environment produce higher carbon emission reduction benefits. The research conclusions provide policy suggestions for promoting watershed ecological compensation policies to achieve carbon emission reduction from three aspects: encouraging small and medium-sized watersheds to implement city-specific policies, promoting innovative technologies and establishing monitoring and evaluation mechanisms, and strengthening policy support and financial investment.